Customer Behavior - RFM
Once you connect your store to Revamp CRM, we automatically create a Customers' report to help you better understand your customers' behavior in a glance.
Just click on Reports > Customer behavior.In this dynamic report, you'll see your:
- Total number of customers
- Number of orders
- Number of products
- ReOrder Cycle
Also you'll find recent statistics on the last 30 Days & Last 6 Months.
There are different type of Reports:
- show when your customers was last contacted during different time frames.
- Last order Date & corresponding number of customers.
- Next order date based on the Re-order cycle & customer purchasing behavior
- Activity in the last 90 days.
Understanding RFM and how it works?
To see eCommerce RFM Matrix, head to Marketing > Analytics, scroll to find it.
Basically, RFM ( recency, frequency, monetary) analysis is a technique used to determine quantitatively which of your customers are the top ones by identifying how recently a customer has purchased (recency), how often they purchase (frequency), and how much the customer spends (monetary).
Let's Define the Terms of RFM individually:
Just what are “ recency,” “frequency,” and “monetary” measures?
- For recency, you’ll figure out how long it’s been since each customer interacted, in days, weeks, or months. You then use those time-based measures to rank your list in order, from most recent to the long-lapsed. The recency score comes from that ranked list, with the 20 percent who gave most recently assigned a score of 5.
- For frequency, a measure is a number of interactions in a given period.
- For monetary, the measure is total transaction value.
Calculating RFM scores:
In Revamp CRM, we automatically calculate your RFM score, and once you connect your online store. The report will be ready for you to check.
Note: Loyal Customers are considered so if they purchased 5+ orders. You can configure customer loyalty by heading to Settings > Top Spenders and change it into the number of orders that suits your business.
Importance of RFM Matrix
RFM report is considered important mainly for 3 reasons
1) to continue to provide the loyal group with what they’re looking for and keep them as frequent & recent customers.
2) to target your marketing efforts toward prospects who resemble your best customers.
3) Define customers who might need a little more attention to convert them into loyal
Segments based on Customer Analytics
Customers Analytics automatically are saved pre-built segments inside your account. when you click on the first 2 rows of your report, New Customers, Inactive Customers etc.. you'll be directed to the Segment screen, where you can take actions and follow-up with customers in this segment.
In the RFM Matrix part, by clicking on the Customers Count, you'll be directed to view customers' pre-filtered list so you can check each customer's profile, to learn more about them and take further actions.
Note: When you click on the RFM segments, it opens a "search result" based on pre-selected filters that we created. If you need to save that segment, just click on the Add Segment button that appears on top of your search results.
After adding a segment you can: