RFM matrix removes the guesswork from customer segmentation
Custobar’s built-in RFM matrix allows you to identify your new, VIP, passive and “lost” customers based on when they have been active and how often they have purchased, and quickly launch campaigns to reach these different groups. You can identify and compare these groups and immediately see where the most revenue is coming from. Sometimes a surprisingly small number of customers can be responsible for the majority of your income, and those should be taken care of best. Now knowing exactly who they are – and keeping them happy – is a breeze.
RFM - The terminolgy
- Recency: The freshness of the relationship between your brand and your customer; when your customer last bought a product from you (online or offline)
- Frequency: The measure of demand; how many times your customers have bought from you
- Monetary value: This can be seen either as a monetary value or the proportional value of every selected group of customers compared to the rest