A Repeat Customer Insights customer was asking about using loyalty discounts and how that could impact customer behavior. Loyalty is mainly measured by the Frequency score in RFM with the Recency showing a bit of influence too. It makes sense, the more times a customer orders then more likely they are loyal. And the more …
Tag: customer analysis
When to stop marketing to lukewarm customers
One question I hear often is when should a store stop marketing to lukewarm customers. In Repeat Customer Insights I’d recommend using the advice in the automatic segments. It’s recommendations will include recommendations to not market, for example in some of the defected customer segments. But if you don’t have the app, you can still …
How your customers automatically decay with RFM
RFM scores are built from three components: Recency, Frequency, and Monetary. Though they are scored the same, they act differently. Recency is an odd one and can look the most chaotic for some. That’s because Recency will start to decay from the moment a purchase is made and get lower and lower until the customer …
How is a Shopify customer assigned automatic segments?
Recently a subscriber was asking how the Customer Grid in Repeat Customer Insights knows which segments to give to each customer. There are three Customer Grids in the app: Recency-Frequency (RF) Grid Frequency-Monetary (FM) Grid Recency-Monetary (RM) Grid Each grid combines two parts of the RFM scores. One score is for the vertical columns, one …
How often does customer behavior change?
I was asked recently: How often does customer behavior change? Every day. Every day new people can decide to become your customers. Every day current customers can decide they are happy with your products and check back to see what you’re selling. Every day past customers can decide to try out a competitor. Not every …
Why you want to save historic data for later
The reason to collect and analyze metrics is to help make a decision. No decision, no point in collecting metrics. Sometimes you’ll want to collect metrics ahead of time though. That way when you’re ready to make a decision, you have enough historical data to support you. That’s why every website installs Google Analytics or …
Find out which marketing campaigns are your keepers
With the holiday rush and any post-holiday orders over, now’s a good time to dig into your results. Ideally you tracked your traffic and orders which will make things easier (e.g. Google’s UTM codes). Even if you didn’t, you might be able to look at the timing of orders to see which campaigns where active. (And …
Finding your consistent big spenders in Shopify
In Repeat Customer Insights I was asked: What is the best report to determine most consistent highest spenders? You’ll want to use the Customer Segmenting reports for that. You can also use the Customer Grid as it’s a visual view of the same data and will let you drill down into the details for each …
How chasing squirrels can teach you customer behavior
I planted a bunch of fava beans to grow through autumn, winter, and into the spring. The first ones started coming up okay with no problems. But the last set of seeds were in the ground for only a day before the squirrels started to dig them up. I tried a bunch of ways to …
How the RFM analysis scores customer behavior from 1 to 5
A customer was asking about how the RFM scoring in Repeat Customer Insights works: How are your coming up with your recency, frequency, and monetary scores of 1-5? All three of the RFM scores are based on five groups of 20% of your customer base (called quintiles). Recency is based on when they last ordered. …