Though RFM can be used to detect customer defection, sometimes it’s too slow to notice the change. In order for an RFM value to change it would require your customer to delay orders for long enough that they fall into the lower 40% of your customer base for Recency. That can cause RFM to lag …
Tag: customer defection
Last chance customer service
If you’re lucky, customers will tell you when they’re about to defect. Usually through a bad interaction with customer service. Let’s back up a bit though. Most customers don’t want to go someplace else. They just want a store to fulfill their need or solve a problem. When they buy a product, if it meets …
Using Average Latency for customer defection detection in Shopify
Recently a Repeat Customer Insights customer was asking about customer defection. By default, RFM is used for detecting customer defections (specifically, low Recency scores) but other metrics can be used too. Average Latency is a good next step for defection detection. It can add a finer view on if a customer is active or defected …
Are holiday customers dormant or gone?
We have a side yard that’s difficult to grow in. Last year I planted a variety of things and only two survived. The area gets lots of sun in late spring and summer but nothing in other seasons so many of the perennial plants struggle. It sucks to put things in and have them fail …
Take care of loyalty problems before they turn into weeds
I’ve been procrastinating weeding the front planting strip for the past couple of months. I told myself it’s fine because it’s still very wet and cold here. Then I went for a walk a couple of days ago and saw some troublesome weeds starting to flower and set seed in the middle of freezing weather. …
Missing shipping expectations causing customer defection
Near the end of last month I ordered something from a Shopify store. It shipped with a 5-7 business day delivery but was stuck in the “label created, waiting on package” for a week. The store marked it shipped in Shopify a week before their carrier received it. It’s now crossing the US to get …
Reactivate your old customers for an easy and profitable boost
I’ve been going through my notes on books I’ve read and saved this gem from Personal MBA: Reactivating old customers is one of the easiest and most profitable marketing activities you have. In ecommerce these are called defected customers, they are the people who haven’t ordered for awhile. They are common enough that there are …
Defection risk from product changes
Every Friday we try to have a movie night. We order out or order in, watch a movie with our kid and then watch another movie after she goes to bed. One place we order from has our favorite burgers. After trying a few different options I settled on one that comes with jalapenos and …
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 …
Using product education to attract new and retain repeat customers
A couple of months back I happened across a native flower that only grows in our area. It’s also the main source of food for various butterflies, including an endangered one. The store I learned about it from wasn’t selling it any longer but they did list their supplier in their product description. Their supplier, …