Tag: rfm

Using customer lifetime values for fun and profit

While you have to be careful averaging customer lifetime values (CLTV), they can be very useful when you keep them associated with the individual customer. Knowing how much each customer has spent is a great way of segmenting. Customers who spend a lot will tend to share behavior, while same as customers who spend very …

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How to find the top 1% of your customers using RFM

Recently Richard asked how to find their best 1% customers in Repeat Customer Insights. In the majority of the sources I’ve researched, Recency is the most valuable measurement followed by Recency/Frequency. Some ignore the Monetary one completely, but it has many uses. The big question to start with is, what’s "best"? Spending is useful but …

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Automatic customer segmenting, without any AI, tricks, or gimmicks

With the holiday season over, I’m gearing up development for both JSON-LD for SEO and Repeat Customer Insights. Yesterday I launched the first major update, automatic customer segmenting. Repeat Customer Insights uses the powerful RFM segmenting algorithm but that algorithm can be complex to understand. Would you know the difference between a 511 and a …

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Putting more F in the RFM customer analysis

RFM is a simple but powerful way to segment your customer base. It lets you rank your customers by using three different measurements. One of those measurements is how frequently they order (that’s the F part of RFM). Each customer is scored with a number from 1 to 5. Customers with the least number of …

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Grading your Shopify customers with RFM segmentation

Segmenting your Shopify customers is a great way to figure out who to target with promotions and campaigns. A store owner had a question about how Repeat Customer Insights is segmenting and grading their customers. while I love the idea of segmenting customers into groups like A,B,C, this app doesn’t give me context as to …

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How Repeat Customer Insights uses RFM segmenting for Shopify stores

I frequently get asked about how Repeat Customer Insights works and what goes into its customer scoring. Repeat Customer Insights uses three values in its grading: How recent a purchase was made (Recency) How many purchases have been made (Frequency) How much has been purchased (Monetary) This is the classic RFM segmenting that has been …

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