I frequently get asked about how Repeat Customer Insights works and what goes into its customer scoring.
Repeat Customer Insights uses three values in its grading:
- How recent a purchase was made (Recency)
- How many purchases have been made (Frequency)
- How much has been purchased (Monetary)
This is the classic RFM segmenting that has been used by decades in database marketing.
Each customer is graded in all three areas from 5 (best) to 1 (worst) relative to your other customers. So a customer with a Monetary of 5 means that they are in the top 20% of your customers in terms of money spent, a score of 3 would be the middle 20%, etc.
The final letter grade (A-F) each customer gets is a summary of their three grades and acts as a quick visual indicator for the customer. Recency is the most powerful factor so it makes up the majority of the letter grade.
Shopify sends me new customer and order data right away and the grading is recalculated every hour round the clock.
Have you tried out Repeat Customer Insights yet? You can with a free 14 day trial.
Eric Davis
Retain the best customers and leave the worst for your competitors to steal
If you're having problems with customers not coming back or defecting to competitors, Repeat Customer Insights might help uncover why that's happening.
Using its analyses you can figure out how to better target the good customers and let the bad ones go elsewhere.