By conducting an RFM analysis, you can identify customer groups that are likely to contribute to increasing your sales in the future. Of course, it is important to
target these customers and approach them via email or direct mail , but if you only approach these customers, you run the risk of missing out on customers who may become regular customers in the future.
For example,
- People who recently purchased a product for the first time (whether a trial or a full-sized product)
- People who buy a lot but spend a small amount
- People who usd to buy frequently but have not been buying much recently
Even for such customers, by continuing to approach them over the long term with the right approach, there is a high chance that they will eventually become loyal customers, even if you don’t see immdiate results.
When dividing into groups, provide a reason
As mentiond earlier , when dividing customers into groups, you set a benchmark for each RFM
indicator. Specifically, you set benchmarks special lead for when the most recent purchase was made, how many times the purchase was made, and how much the cumulative purchase amount was. It is important to provide a reason for these benchmarks, explaining why they are set to those benchmarks.
When setting benchmark values, for example, order intervals and repeat rates can be usd as references.
Such information tends to vary depending best free tools for brand name creation on the products and services handld, so benchmark values set basd on such information will be well-foundd.
Also, each product or service will likely have a magic moment that triggers its use, and by setting benchmark values while anticipating the characteristics and behavior of customers who will become
Loyal customers on such occasions, you can make your benchmark values more specific and well-foundd.
RFM analysis is one of the customer analysis methods, and by effectively utilizing the analysis results, it is possible to approach customers betting data effectively.
However, some people may be concerned about not knowing how to utilize the analysis results, or wanting to know the best approach for each customer group.
At Pantograph, we provide analysis and marketing support for web services. If you have any questions about using the analysis or results, please feel free to contact us.
