https://ripemetrics.com/wp-content/uploads/2020/08/rfm-2.png 1080 1080 Mia Sciuto http://ripemetrics.com/wp-content/uploads/2019/06/ripemetric-logo-340-156-white-2.png Mia Sciuto2020-08-25 14:40:392020-10-21 16:37:54Business and Sales Opportunities with RFM scoring
Receiving constant emails and notifications from a business can cause the opposite effect of the intended outcome. From time to time, these notifications can serve to remind and encourage your customers to come back.
It can be hard to know how often to reach out to customers and create balance between being too pushy and bringing attention back to your business. Customers can be unpredictable and have a range of shopping styles.When you uncover behavioral patterns of customers you can use that information to effectively apply marketing strategies and uniquely target customers with the right messages at the right time .
Push notification can be a very helpful marketing strategy if used properly.If notifications are sent too often customers will mute them or opt out.
The amount of notifications as well as the context of these messages are normally not customized to match the customers needs. Understanding your customers better will aid you in creating personal push notifications and marketing strategies to be most effective.
Recency, Frequency, Monetary Analysis (or RFM) is a database marketing tool used to automatically analyze your customers behaviors, and orders them into the most valuable to least valuable.
Customers are ranked based on the recency of their purchase, amount of time they come in, and the amount of money they are spending. These scores allow you to effectively target customers.
Let’s say your RFM analysis shows a particular customer segment has a high Monetary Value score, because they make large purchases every time they visit your store, but low Frequency score because they only come once a year. You now know you need a strategy that gets these “high rollers” to visit your store more often each year, and you could target this audience segment with an offer to for special premium coupons giving them a notable discount once a quarter, for example.
Loyal customers may not need frequent reminders and notifications, with the RFM scores you’re able to differentiate between these customers.
If the RFM notices a recent and frequent customer who may not spend much money, it will display these metrics and help you as a business owner know to target these customers to encourage them to spend more on each trip.
Being able to customize the approach you take towards your customers makes RFM a valuable tool to your business.RFM scores will also benefit the customers, they no longer will receive unnecessary notifications that do not apply to them. Investing in RFM for your business creates loyal and happy customers who will continue to return.