RFM-based segmentation categorizes customers based on their transaction activity – how recently, how often and how much did they purchase. Recognizing that conventional transaction analysis cannot accurately capture their preferences, RFM divides customers into various segments or clusters to identify customers who are more likely to respond to personalized marketing. Once each of your customers is placed in a cluster, your company can take targeted actions on each segment for conversion uplift.
Part of a robust omnichannel engine, RFM enables you to onboard data from multiple sources and power experiences through a single cohesive dataset. Easily gather, classify, and synchronize datasets from your LMS, CRM, POS, APIs, and more. It’s Omnichannel capabilities empower you to share segments between various properties and target customers with tailored messaging throughout their journey, regardless of the medium: mobile, web, or offline. Quantify Average Order Value, segment-based revenue, and other key segments to determine performance per audience and capitalize on data-driven opportunities for optimization.
RFM Segmentation is a great way to cut marketing costs. Instead of running the same campaign for all customers, you rely on behavior-based RFM analysis to understand each customer’s needs and give them what they want on their preferred platform, leading to a much higher ROI.
RFM insights enable you to develop a far more efficient marketing strategy, optimize your budget and sales, and identify opportunities to enhance the customer experience.