RFM analysis helps you segment customers and drive sales growth by focusing on their purchase behavior.
What is RFM analysis?
Recency - How long since they last purchased
Frequency - How often have they purchased
Monetary value - How much money have they spent
Identify a segmented list of customers and target them with relevant marketing. Reward them/win them back/make them feel more special!
- Choose 06- Customer Analysis
- Choose 06- RFM Analysis
- Click the desired Customer Segment OR choose 'Click Here to View all Customer Segments' to show full detail of your customers.
- When looking at the detailed view, you have the option to export to whichever format that you need.
See below for descriptions of each customer segment and click here to view a more detailed explanation of RFM and Customer Definitions.
|
Customer Segment |
Activity |
Suggested Actions |
|
Best Customers |
Purchased recently, buy often - and spend the most! |
Reward them. Offer early release of new vintages. Will promote your brand. |
|
Potential Best Customers |
Made a few big purchases - need to keep them engaged |
Keep them engaged via special offers, don’t lose them to competition, talk to them. |
|
Best Customers at Risk |
Spent big money and purchased often, but haven’t purchased for a few months. Need to ensure they stay! |
Call them or send personalized emails to reconnect, offer incentives, provide helpful resources. |
|
Loyal Customers |
Spend good money with you often. Responsive to promotions. |
Upsell higher value wines. Ask for reviews. Engage them. |
|
Potential Loyal Customers |
Recent customers, bought a few times. |
Offer club membership / loyalty program, recommend other wines they might like. |
|
Loyal Customers at Risk |
Above average frequency and monetary values - yet have not purchased for a few months. |
Make limited time offers, Recommend new wines based on past purchases. Reactivate them. |
|
Regular Customers |
Regular shoppers, but don’t spend much. |
Create brand awareness, try to upsell to higher value wines. |
|
Newer Customers |
Recent shoppers, but not frequent purchasers. |
Provide on-boarding support, give them early success, capture wine preferences, start building the relationship. |
|
Dormant Customers |
Last purchase was several months ago; unremarkable frequency and monetary scores. |
Offer other relevant wines and limited time discounts. Recreate brand value. Focus on high LTV customers. |
|
Lost Customers |
Lowest recency scores - haven't seen them all year. |
Revive interest with reach out campaign, especially high LTV, ignore otherwise. |