Here’s a question or few for all you retailers and marketers out there: How well do you know who your best and most valuable customers are? Who spends the most amount of money? Who are the most loyal ones? Who just made their first purchase and needs to be tended in order to cross the eCommerce valley of death? Who is becoming passive or is about to churn?
With Custobar’s unique RFM Matrix you know all this in just one glance. Identifying new, VIP, passive, and “lost” customers has never been easier!
From customer data to actions that matter
Custobar users can identify the value and the potential of different customer segments in just one look. Our unique RFM Matrix shows you in one dashboard view your VIP, new, passive, and at risk (of being lost) customers. You can then create marketing campaigns and multi-channel communications to reach these different customer segments.
The RFM Matrix dashboard even lets you compare their statistics and immediately see where most of your revenue is coming from. You, too, can take out the guesswork of these common concerns once and for all:
- Who should we target when we talk to our best customers or activate the passive ones? You will know who they are, making it easier to get up close and personal with them. Regardless of the type of your campaign, marketing, customer retention, or otherwise.
- Has the number of active customers been increasing or decreasing lately? The RFM Matrix dashboard is a great way to keep track of customer development in each customer segment.
- Are we crossing the infamous eCommerce valley of death with our customers or not? And if our customers are not returning after their first purchase, is that true for most or just some of our customer segments? Statistics show that up to more than 80 percent of first-time buyers don’t return after a seasonal sale, such as Black Friday. Since the cost of acquiring new customers is some 6 times more expensive than getting customers you already have to buy again, take a look at the RFM Matrix dashboard and target your marketing efforts there. After all, it might be a money-worthy idea to analyse when they drop off the customer journey, and how you can cut your losses, that is, salvage the resources put into getting the first and only purchase.
This image shows that roughly 25% of this client’s entire customer base did not buy anything and has been passive for over a year. Considering the time and money put into customer acquisition, keeping an eye out and checking the RFM Matrix regularly, this segment could have been targeted before a whole year has passed from the first buy. How much money are you leaving on the table right now, do you know?
Let’s get technical
RFM Matrix (Recency, Frequency, Monetary value) refers to RFM data:
- Recency refers to how recently a customer has made a purchase.
- Frequency refers to how often a customer makes purchases.
- Monetary value refers to how much a customer spends on each purchase.
The Custobar RFM Matrix collects and combines all this data automatically. So, no collecting or tracking your customer data manually, and no time needed to apply the RFM score formula for the calculations - it’s all already done in the RFM Matrix. And not just once, but all the time.
The Custobar RFM Matrix includes weighted RFM scores and demographic data. It has a user-friendly interface with great graphics. And if there are any flaws or deficiencies in the original data, the RFM Matrix will reveal all possible flaws and shortcomings in the data sources.