Want to run a special marketing campaign for your most loyal customers? Good idea, but can you divide your audience into those most engaged and those showing minimal interest? If you want to increase the conversion rate, you need to encourage users, through personalized content and customized offers. Use RFM reports and tailor actions to the characteristics of the contacts in your base!
RFM reports will help you segment your customers
Of course, there are many ways to determine the users most likely to buy, but with RFM reports you will classify customers easily in a few moments, and thanks to automatic refreshing the reports will always be up-to-date. RFM stands for three elements:
- Recency shows the last purchase made by a customer. Thus, you can see which people have not been interested in offers for a long time, and which ones are highly engaged and show a strong attachment to your store. A customer who has recently bought something from you is likely to be eager to return and buy again.
- Frequency refers to the frequency of purchases. Someone who completes transactions with you very frequently will be identified as a loyal customer. To such a person, it is best to offer products that he buys regularly and, for example, give a special personalized discount coupon for them.
- Monetary indicates the customer’s spending on purchases. This parameter will allow you to see the buyers through whom you have the highest profits. To them, it is worth targeting exclusive offers and promotions on categories of their choice, which will not interest other users.
Why RFM reports are essential for your company
Imagine you want to send messages to your recipients about a promotion running for two days. You can set up a mailing for all contacts in your database, but you are much more likely to encourage someone who has been buying from you regularly for many months than a customer with one purchase made several years ago. In addition, if the special discount will include all premium products, it is best to send ads only to users who can afford such products and have already spent money on them. Without segmentation, you can quickly burn through your budget. With RFM reports, the system will immediately divide the audience into groups on its own, so campaigns will be much more personalized, which will increase conversions.
What a person’s low RFM rate means and what you can do about it
People with a low RFM rate do not show much interest in your products and services. They are unlikely to return to your store unless you offer them a discount that will prompt them to buy again. Keep in mind that many customers may have a low rate of only one of the RFM elements. For example, a user with low M but high R and F makes regular purchases from you, but for a small amount, so a 10% discount on an expensive premium collection will not be useful to such a person. For a loyal customer who likes to buy luxury products, such a discount may be a good idea, although then you should appreciate the commitment and reward such someone, for example, by creating a special loyalty program for the most active users.
Use information from RFM reports and create relevant MA scenarios
In iPresso, you can set up Marketing Automation scenarios that will automatically send personalized messages to customers based on their activity. For example, for people who buy luxury products from you, you will send messages with a discount code for the latest premium collection, and for customers who have stopped buying for a while, you will prepare a special coupon -10% on all products. RFM reports will allow you to focus your efforts on your most loyal customers, and with personalized messages and recommendations you will increase profits and the value of the shopping cart. We know how important it is to match the tools to your business, so at iPresso you have special versions of the platform to best help you communicate with your customers.
Summary
Automated RFM reports will allow you to identify your most engaged, loyal users, and tailor unique offers and promotions to your audience. With in-depth analysis of customer behavior across three criteria, it is possible to segment customers and focus on the people who provide the most value. In iPresso, you can check how effective your marketing efforts are and create scenarios that automatically target relevant content to selected customers.
Want to leverage RFM reports for your business? Find out that marketing automation is right for you! Click here and start your free 30-day trial to the iPresso platform today!
Leave a Reply