RFM model: Don Juan

In the previous chapter, we focused on an RFM group that must be analyzed and treated very carefully – “About To Dump You” customers. This segment includes numerous valuable customers who are inactive but, with the right tactics, can be reactivated.

This time, we’re looking at an intriguing RFM segment – “Don Juan” customers. Yes, just like the (good) one-night stands in real life. 

In terms of RFM score, their Recency and Frequency scores are at the lowest point, while their Monetary Value is 4-5.

They only made one high-value purchase once, then disappeared without a trace. However, you wanted more from them and the chances of transforming them into loyal customers aren’t so small.  

Indeed, some of the Don Juans might never turn back, but it is important to understand their motivations, how you can generate more purchases and win their loyalty.

Analyzing the behavior of the Don Juan segment

Identifying Don Juans

To identify the customers in this RFM segment, you can look in your database and select the customers who have the RFM equal to 114 or 115.

If you are using Reveal, you can identify them in the CRM by using the RFM name filter. You can also see what revenue and margin they generate compared to other groups in the Segments section. 

Net Promoter Score

Take a look at the customer satisfaction and customer experience surveys to see if you got any feedback from this segment. Listening to their voice gives you an accurate insight into what you could do to get more from your Don Juans.

If you’re using Reveal and your account is connected with the Explore app by Omniconvert, you can analyze the Net Promoter Score (NPS) given by your Don Juans, but also by other high-value groups, such as Soulmates.

Order returns

Correlate the items purchased by one-time buyers with the order returns your e-commerce store has and you might find the reason why this group purchases only once from you.

You can find what products and brands lead to customer dissatisfaction by looking at the Order Returns in Reveal. Knowing what causes poor experiences helps you refine your offers and eliminate the problematic items.

Top products/ brands/categories

Your best-performing products, brands, and categories can generate second purchases in this group and, with the right programs in place, loyal customers. Look at top-performing items at the company level, but also at what Soulmates prefer. They are, after all, the segment with the highest average order value and their preferences can help you shape offers meant to reactivate Don Juans.

If you’re already using Reveal, you can look for popular products among Don Juans and Soulmates in the Buyer habits report.

Everything you need to know about this segment is in your first-party data. Use any information you have in your CRM to personalize future messages and offers. 

How to encourage the second purchase & retain customers that started as Don Juans

Don Juans exist in your customer base because you didn’t manage to find their motivations and generate the second purchase – an essential moment in the customer’s journey. The second purchase doubles the chances to place the next order compared to the first acquisition. As you can see in the chart below, this is a pivotal moment for an eCommerce store.

How to generate the second purchase

Learning from Soulmates

Take a closer look at the campaigns that generated repeat purchases into the Soulmates group. Use the gathered data to replicate the success of previous campaigns and design new ones that have the potential to reactivate Don Juans.

Limited edition products

Making high-value purchases, Don Juans can be attracted by high-value offers that include limited edition items and create a sense of exclusivity. Announce your offers via email and SMS with an irresistible punchline.

Remarketing campaign

If reactivation via SMS and email failed, you still have remarketing campaigns as a reactivation method. You already have the data you need to reengage with this RFM group, so you just have to set a budget that you think is suitable keeping in mind the potential of this group compared to their very low recency and frequency scores.

How to nurture Don Juans after reactivation

Loyalty program

If you succeeded to reactivate Don Juans, you can include them in the loyalty program that you already have for Soulmates. Having the highest Average Order Value, it’s very unlikely to attract customers like Don Juans with deals and discounts, so you need to know that makes them click.

How to do this?

Email marketing is one of the most effective ways to send offers and nurture a VIP client. By integrating Reveal with your Klaviyo or Sendgrid account, you can send the right emails to the right people. All the data you have in your Reveal CRM is synced with the CRM of the other integrated tools.

Customer surveys and one-on-one conversations

If you want to keep the scores for Recency, Frequency, and Monetary Value high, you need to measure and monitor customer satisfaction and experience right after they placed an order and right after delivery. This is when people are most willing to share their feedback because every detail is still fresh and their engagement is at the highest level. For this high-value customer group, you can go one step further and replace the basic survey with a one-on-one conversation.

How to do this?

Reveal’s integration with Klaviyo or Sendgrid also allows you to send Net Promoter Score surveys automatically, triggered by the two moments – when a customer places an order and when she/he receives the package. To engage the customer in that one-on-one conversation, use the first-party data you already have and mention some details that reflect you did your homework before calling and you know exactly who you’re talking to.

Personalized/ VIP offers

Understanding their motivations, preferences, and needs, helps you create personalized offers that can be included in your loyalty program. You need a strong selling proposition to build a new habit and convert customers from Don Juans into a loyal category.

How to do this?

Use all the data you find in your CRM and mix it with the insight you can find in Reveal reports – buying habits for a better understanding of customer behavior and top products/ brands/ catalog for customer preferences. 

How to avoid Don Juans

• Onboarding – Prepare a Welcome email and an onboarding for all of your customers and offer extra attention to the high-value new customers. For example, calling your newly acquired customer could be added to the onboarding process for those with high AOV.

• Anticipate the next moment of purchase – Predicting their next moves helps you retain customers, maintain frequency, and improve engagement. In Reveal, this predictive metric is called Average Days Between Transactions and you can see it at the company-level and individually, in CRM.

• Loyalty program – Create, monitor, evaluate, and improve a loyalty program that is a mix of nurturing content and personalized offers. Let new customers know about this program and emphasize the benefits of becoming a VIP customer.

Not all Don Juan customers are Don Juans by nature. Some of them are going from an e-store to another because they still haven’t found one that meets all their expectations. Some of them might seem to be Don Juans but are actually high-value customers that you didn’t manage to impress at their first order. So, don’t run from this RFM segment. Understand how their minds work and see if you can transform them into Soulmates.