Surviving the relatives

When analyzing your customers, it’s important to compare how they perform relative to the other customers.

If you have a customer who has spent $1,000 in their lifetime, would you consider them a good customer?

It’s hard to answer that.

$1,000 sounds like a lot.

But if your average order is $800, that’s not even two orders so they aren’t great.

It’s a different story if your average order is $50 or $20,000.

The RFM algorithm in Repeat Customer Insights helps to do these relative comparisons. It doesn’t care what your actual numbers are, only how they compare to the others.

$1, $100, or $1,000 orders don’t matter to it.

1/100, 1/10, or 5x of your average order amounts are what matters.

That’s how Repeat Customer Insights can work well for large Shopify Plus stores as well as smaller, side businesses. The algorithm self-adjusts automatically for you.

If you haven’t installed yet, it might be worth a look. It comes with a free trial and I bet you’ll learn something new about your customers after installing.

Eric Davis

Use cohorts to find out who the best customers are in your Shopify store

Repeat Customer Insights icon

Repeat Customer Insights will automatically group your customers into cohorts based on when they first purchased. This will let you see how the date customers bought would impact their behavior.

Install Repeat Customer Insights for Shopify