> Chapter 6.7
RFM model: About To Dump You
The About to Dump You RFM segment is the category of customers that you’re at risk of losing or you’ve already lost. How can you win them back?
Table of Contents
In the previous chapter of our CVO guide, we focused on another RFM group, Platonic Friends, a segment that you can nurture into more valuable customers, like Lovers or Soulmates.
We have five more RFM groups left and we are entering a new category of customers, the ones that you are at risk of losing or you’ve already lost. We’re starting with a segment named About to Dump You.
“About To Dump You” is a segment of inactive customers that haven’t ordered for a while. This group has a Recency score of 2-3 and their scores for Frequency and Monetary Value can be anywhere from 1 to 5.
Your goal is to win back this segment and to make sure that as few customers as possible end up here. Let’s see what you need to know about this RFM group before reaching out to them with new marketing and sales messages.
Analyzing why customers are About To Dump You
The first thing you want to find is how many of your customers are in the About To Dump You segment, the Revenue and Margin that they generate.
To find this information, you can go to the Segments section in Reveal and look at the Revenue vs. Margin by RFM Group report.
Are they as numerous as in the chart below? You definitely have to get into detailed research!
Filtering About To Dump You customers
Not all About To Dump You clients are made equal because their RFM scores vary widely. It’s important to understand that only some of the customers in this group might be reactivated and it’s up to you to decide if it’s worth the effort.
Maybe start with the ones with higher scores for Recency, Frequency, and Monetary Value. You can identify them by filtering your customer base in Reveal’s CRM: select the RFM group “About To Dump You” and then enter the scores like “255”, “245”, or “254” (the highest RFM scores in this segment).
The answers behind the metrics
(Net Promoter Score, Order Returns, Best & Worst Products, Buyer Habits)
When you’re connecting Reveal with Explore by Omniconvert, you can measure and monitor the Net Promoter Score (NPS) pre and post-delivery. This allows you to identify what feedback you’ve got from the customers across all RFM segments.
Search for answers from the About To Dump You clients and find out what caused poor customer satisfaction and customer experience. Correlate their answers with the insights in the Order Returns report in Reveal and you can identify the products and brands that cause dissatisfaction. Avoid these products or even eliminate them from your assortment.
Not all customers in the About To Dump You segment are necessarily unhappy with your offers. You might find that some were really pleased with their pre and post-delivery experiences. One of the reasons why they’ve grown cold might lie in the fact that you haven’t invested enough in retention tactics.
To gather some ideas for a successful reactivation campaign, look for popular products in this group by selecting About To Dump You in the Buying Habits report.
Reports like Top Products, Top Brands, and Top Categories help you identify items that generated the best results in your eCommerce store and can be used as part of your reactivation efforts.
You want to recreate a strong connection with these clients, so use all the data that Reveal pushes to your eCommerce platform’s CRM to personalize your emails and offers sent across channels.
How to reactivate customers that are About To Dump You
Reach out to this group of inactive users with a personalized message (if possible) to show that you remember their preferences and needs. You can find these details in their purchase history. Express your interest in reconnecting with them genuinely and informally.
Use channels like email and SMS to re-engage and to send them an irresistible discount for all items in your store or for a selection of items that they fancy. A reactivation series of messages might be more efficient, but be careful, you don’t want to be too pushy.
If you’re using Klaviyo or Sendgrid, integrate your email marketing tool with Reveal to get the most out of your CRM: use the data in your customers’ profile to create personalized messages.
When customers in this segment are ignoring your reactivation campaign messages and you really want to win back the most valuable ones, remarketing might be a good idea. People who are already familiar with your brand are more likely to place another order.
Export your About To Dump You customer list from Reveal for your remarketing efforts. Look at the Cohort Analysis section in our tool to get an idea about what campaign generated better retention rates.
How to keep them loyal and happy after reactivation
Convincing this segment to place a new order is just the first step in your retention strategy. Understanding why you almost lost them is extremely important and you must be prepared to make sure that this group stays as small as possible.
Without a loyalty program, the risk of losing customers to competitors with aggressive discount campaigns is high. Not all customers are deal hunters and no matter how people react to deals, all of them want to feel appreciated and to receive the best products and experiences. Loyalty programs have the power to generate high-value customers and allows you to create memorable experiences.
How to do this?
Reveal offers multiple customer reports to extract insights about their behavior, preferences, and reasons why they might leave your brand. This valuable data helps you create unique programs. Reveal’s integration with your Klaviyo or Sendgrid account allows you to leverage customer knowledge. Use the power of email marketing to inform your reactivated “About To Dump You” customers about the advantages of being a VIP client.
Customer satisfaction and customer experience
Customer surveys help you measure and monitor satisfaction and experience pre and post-delivery. Listen to their voice, thank them for their answers and solve any objections or problems they might have. You almost lost the customers in this segment, so paying extra attention to their feedback is key for your retention efforts.
How to do this?
By connecting Reveal with Klaviyo or Sendgrid, you can access NPS surveys from templates and then automatically send the surveys to your customers via email in two key moments: right after they placed an order and right after the order is delivered.
If you want to nurture the reactivated customers in this segment, you must add personalization elements where possible. Showing that you know their needs and taste, increases the chances to place a new order and keeps them close in the long run. Send your offers across various channels, then analyze which works better.
How to do this?
Reveal helps you identify customer’s preferences in reports such as Buying Habits, Top Products, Top Brands, and Top Catalog. To avoid problematic products, check the Product Returns section. Evaluate your offers by looking at the NPS section.
For better frequency scores, subscription-based acquisition can be an alternative with benefits for both sides. Your customers stop worrying about the next order for everyday use products that must be purchased frequently (and maybe you also offer them a discount for larger orders). Your company is more skilled at anticipating the volume of orders. In the end, everybody wins.
How to do this?
By synchronizing Reveal with Shopify, RFM group information and other tags are added to Shopify CRM. This means that you can combine the data from Reveal with Shopify’s new capabilities and inform the customers about the subscription-based option in key touchpoints such as the check-out page.
Reactivating dormant customers isn’t easy, but with the right approach and tools, you can generate great value from a customer segment that is already familiar with your offer and brand. Reveal is a tool that supports your customer value optimization efforts and offers valuable information to identify customers at risk of leaving.
Stay tuned for our next chapter where we continue to write about another RFM group: Don Juan!
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