Recently a Repeat Customer Insights was asking about what triggers the RFM scores to change, like from Recency 5 to 4. There are no set points or triggers that move customers from one RFM score to another. Rather, RFM ranks each customer against your customer base as a whole and based on where the individual …
Tag: rfm
Measuring the results from marketing tactics from month-to-month with RFM
A Repeat Customer Insights customer emailed asking how to measure improvements in their customer segments each month: We are putting together a strategy of measuring our tactics in these numbers. A few items we are hoping to look at is what % of our customers are at risk, what percentage have defected and what percentage …
Segmenting by comparing to your average customer
A simple way to evaluate customers is to compare them to your hypothetical average customer. Has this customer ordered more or less often than the average customer? Does this customer spend more or less in each order than the average customer? Does this customer order sooner or later than the average customer? These sorts of …
Picking one and only one metric for customer analysis
I was thinking, if I had to pick one and only one metric to look at for customer analysis, I think I’d pick Recency. That’s the first part of the RFM model and while I’d rather use the whole model, the Recency would be a good single metric. Recency tracks how recent a customer has …
Find the loyal customers who spent the most in your Shopify store
With the release of the RFM score filters in Repeat Customer Insights, there’s more ways you can segment your Shopify customers. One important segment are the loyal customers who have spent the most. Loyal is defined in the app as having recently purchased and have made many purchases. Nothing about their purchase sizes though, which …
New customer filters for RFM scores released
Repeat Customer Insights now has the ability to filter customers by their RFM scores. Previously the app would use the RFM scores behind-the-scenes but they weren’t shown except in the data export. Great for spreadsheet users, but not great for stores who wanted to browse and explore their customers. I’ve added the option to filter …
Using Recency and Frequency to measure customer loyalty
In Repeat Customer Insights there are a few insights you can pickup by comparing the Recency-Frequency (RF) Grids. The segments to the top right are the best for repeat customers, the ones to the bottom left are the worst. If segments to the right are increasing (higher Frequency), that’s a sign that new customers are …
Released: compare how your customer segments have changed over time
I’m happy to announce a new Customer Grid analysis for Repeat Customer Insights. Compare Historic Customer Grids A few months back I released the first part of this with the Customer Grid History. That allows you to look back on how your customers were segmented historically in each of the various Customer Grid segments. This …
Big orders are a distraction from long-term Shopify store success
One thing the RFM analysis will teach you is that the biggest spenders aren’t always the best customers. How recently and frequently a customer buys are more important. Big spenders are nice when they buy but if they are only one-time customers you won’t get much long-term benefit from them. They’ll help you out this …
Adapt your marketing to avoid your worst customers
At some point it’s not worth it to market to some customers for reorders. They might be unresponsive. They might be chronic returners. Or they might just cost too much to reach so even when they do order, you’re not turning a profit. Your limit will depend on how much it costs to reach them. …