RFM, short for Recency, Frequency, and Monetary value, is a top data-driven method for customer segmentation. Markograph’s RFM segmentation tool simplifies access to customer data. With one click, marketers can analyze loyal customers, new ones, and those at risk of churning. They can also track sales performance by segment, gauging the impact of marketing strategies.
For business owners and marketers, monitoring shifts in customer behavior is crucial. Markograph simplifies this by visually presenting changes in various customer segments through graphs and visuals. Customize the time frame to access pertinent statistics, enabling faster, data-driven decisions. In today’s dynamic landscape, this tool is essential for aligning your business strategies with the evolving market.
This tool analyzes customer behavior over varying timeframes, from days to years. It pinpoints when you retained new customers more successfully compared to others. Additionally, it tracks repeat customer rates and aids in crafting effective offers. This feature is essential for customer retention, saving your business. It also lets you quickly spot when new customers may drop out, enabling proactive retention efforts.
Customer Basket Share
Acquiring new customers can be expensive, making it crucial to gauge their profitability. This feature calculates the proportion of new customer sales to total sales and the percentage of your annual income from the past year generated by new customers. It’s a vital Markograph report, enabling you to comprehend new customers’ spending and their impact on your business. This insight helps tailor strategies and offers for this specific customer group.
Customer Lifetime Value
Discover the income potential from each customer segment with this Markograph tool. Identify your most valuable customers and analyze their average lifetime contribution to your income. Prioritize marketing efforts and uncover factors driving these outcomes. Markograph enables you to calculate five essential KPIs instantly:
Average Order Value (AOV)
Purchase Frequency
Lifespan
Customer Lifetime Period
Customer Lifetime Value
RFM segmentation may not suit all e-commerce businesses due to varying priorities in customer analysis. For example, in FMCG businesses, product return rates are vital for segmentation. In such cases, clustering proves more beneficial, enabling customization based on unique business needs and criteria. Clustering also identifies key indicators within each customer segment, aiding precise targeting for specific e-commerce goals and challenges.