Customer RFM Analysis where RFM stands for Recency Frequency Monetary scores, is a easy way to segment your customers. Recency stands for how recently a customer has ordered from your store, frequency represents the number of times the customer has ordered from you and Monetary score represents the total value of their orders. This helps you pay specific attention to the needs to different customer segments that can eventually improve their retention and life time value.
SKULogi the customer segments are present in the form of the below matrix, based on Recency and Frequency.
The Recency decreases from left to right and the frequency decreases from top to bottom. On clicking the segments you can view the customers further divided into 3 groups (High value, Medium value and Low value) based on their total spend.
Clicking the count under a particular segment or the view all link from this pop-up takes you to the list of customers belonging to the selected segment. Example, the below screen shot lists High value customers belong to Star category (i.e. High frequency and high recency).
Using this matrix you can focus your marketing efforts easily and efficiently. For example, you can try and win back a lot of high values customers from the Don't Lose Them category by offer high discounts exclusively to them or try to convert the Undecided ones into Loyals through targeted campaigns.