Tag: rfm

Finding your most loyal customers in Shopify

A Repeat Customer Insights customer recently asked: What is the best report to determine most loyal consistent purchasers? You’ll want to use the Customer Segmenting reports for that. You can also use the Customer Grid as it’s a more visual report of the same data. Clicking on any of the of grid items will take …

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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. …

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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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