Increased repurchase rate, RFM customer segmentation strategy
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RFM Customer Segmentation Strategy
Maximize retention marketing effects and encourage repurchase through sophisticated customer segmentation based on RFM analysis
We will inform you of the repurchase rate increase, RFM customer segmentation strategy, and retention marketing strategy.
RFM analysis core strategy
1. Recency
Measures the time elapsed since the customer's last purchase date.
- Recent purchase date analysis
- Measuring purchase intervals
- Activity evaluation
- Determine the risk of leaving
2. Frequency
Measure how often your customers purchase.
- Purchase count analysis
- Identify purchasing patterns
- Loyalty Assessment
- Active customer identification
3. Monetary (amount)
Measures the total amount spent by customers.
- total purchase amount
- average purchase amount
- valuation
- profitability analysis
4. Customer segmentation
Segment your customers based on RFM scores.
- champion customer
- royal customer
- potential customers
- risk customer
5. Customized marketing
We carry out customized marketing for each segmented customer group.
- personalized message
- Customized Benefits
- targeted advertising
- email campaign
6. Performance measurement
Measure and improve the performance of RFM-based marketing.
- Measuring repurchase rate
- Customer lifetime value
- Marketing ROI
- Continuous optimization
Characteristics of RFM Customer Segmentation Types
| customer type | RFM score | characteristics | marketing strategy | expected effect |
|---|---|---|---|---|
| champion | 555 | highest value customer | VIP benefits, referral program | very high |
| royal customer | 4-5 points | loyal customers | Rewards Program, Personalization | high |
| potential customers | 3-4 points | Customers with growth potential | Upselling, cross-selling | middle |
| new customer | 1-2 points | new customer | Onboarding, driving first purchases | middle |
| risk customer | 1-2 points | Customers at risk of churning | Retention campaign, special benefits | low |
| churned customers | 1 point | Customers who have already churned | revitalization campaign | very low |
5 steps to building RFM analysis
Step 1: Data collection
Collect customer data needed for RFM analysis.
- Purchase history data
- Customer Information
- transaction data
- data cleaning
Step 2: Calculate RFM Score
Calculate the RFM score for each customer.
- Recency score
- Frequency score
- Monetary score
- Calculate overall score
Step 3: Customer Segmentation
Segment your customers based on RFM scores.
- Setting segmentation criteria
- Customer group classification
- Characterization
- Priority settings
Step 4: Marketing Execution
We carry out marketing by segmented customer groups.
- custom message
- targeted advertising
- email campaign
- Promotion Run
Step 5: Measure and improve performance
Measure and continuously improve your marketing performance.
- performance measurement
- Effect analysis
- adjust strategy
- Continuous optimization