The RFM model works really well for large stores. With 125 unique segments, there’s a lot of fine-tuning potential. For smaller stores (and stores that don’t want to fiddle), it might be too much as it is. Say you get 500 orders per month (6,000 per year). That means you’ll have about 4 customers added …
Tag: customer grading
More powerful customer grading algorithm to better understand your customer behavior
After months of planning and development, I’m happy to announce that Repeat Customer Insights had a major update to its customer grading. The new version of the customer grading still uses the simple letter grades (A, B, C, D, F) but now the grading algorithm takes into account more factors. It’s based on RFM which …