RFM analysis reveals data anomalies that will allow eCommerce managers to understand which are the most important groups of customers when they balance the customer acquisition cost with the margin they generate.
RFM segmentation readily answers these questions for your business:
- Who are my best customers?
- Which customers are on the verge of churning?
- Who has the potential to be converted into more profitable customers?
- Who are lost customers that you don’t need to pay much attention to?
- Which customers you must retain?
- Who are your loyal customers?
- Which group of customers is most likely to respond to your current campaign?
The top benefits of RFM Analysis are:
- Better email marketing
- Higher customer lifetime value
- Successful new product launches
- Outstanding user engagement and loyalty
- Lower churn rate
- Better ROI on marketing campaigns
- Success in remarketing
- A better understanding of your business
- Overall higher profits and lower costs
Was this post helpful?
Let us know if you liked the post. That’s the only way we can improve.