RFM Segmentation

RFM (Recency, Frequency, Monetary) segmentation is a powerful framework for understanding customer behavior and driving personalized marketing. By analyzing how recently a customer purchased (Recency), how often they purchase (Frequency), and how much they spend (Monetary), you can uncover actionable insights that improve retention, increase customer lifetime value, and optimize campaign targeting.

RFM segments customers based on their interactions with your store, allowing you to group them by value and engagement. This model helps you tailor marketing strategies for each group: rewarding your best customers, re-engaging those at risk of churning, and nurturing new buyers into loyal fans.

Segment Descriptions

Champions: Your most valuable customers. Recent, frequent, and high-spending buyers who engage regularly and drive the most revenue.
Loyal Customers: Repeat customers with consistent purchasing behavior who may not spend the most but are highly engaged.
Recent Customers: New buyers who made their first purchase recently but haven’t yet shown long-term engagement.
Promising: Customers who’ve bought recently and show potential to become loyal if nurtured with the right messaging.
Potential Loyalists: Active and moderately frequent buyers who are on the path to becoming loyal customers.
Need Attention: Previously active customers with decent purchase history who haven't interacted in a while.
At Risk: High-value customers who haven’t purchased recently and are at risk of churning without re-engagement.
Can't Lose: Previously top-tier customers showing a significant drop in activity, critical to win back.
About to Sleep: Infrequent or lower-spending customers who haven't engaged recently and are nearing churn.
Hibernating: Long-time inactive customers with low frequency and monetary value who may need reactivation campaigns.

Available sources

RFM Segmentation is powered by data from the following sources:

Shopify

Magento 2

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RFM Segmentation
Segment Descriptions
Available sources