Customer grading is one customer analysis that Repeat Customer Insights includes in its suite.
This is where each customer is graded with a letter grade based on their behavior:
- Grade A customers are your best scoring customers. These will include your VIP, loyal, and fans that you should cultivate.
- Grade B customers didn't make the cut for Grade A but are still above-average. They could include upcoming great customers that just need a nudge.
- Grade C customers are your average customers. They might be new customers without a lot of behavior, prior great customers who have since changed their buying behavior, or customers with basic buying behavior.
- Grade D customers are below-average customers. They might fall in here due to buying less frequently, a long time ago, or aren't showing the customer behavior of your better customers.
- Grade F customers are your weakest customers, behavior-wise. They might include defected customers or one-time buyers.
The benefit of this grading over something like RFM is how simple it is to understand. Only five segments. Customers gradually improve from F to A with good behavior. They decay from A to F with bad or no behavior.
It's also easy to compare customers against each other. An A customer is objectively better than a B customer.
Eric Davis
Measure which customers you're retaining and which you're losing
In order to keep your best customers, you need visibility into what's going on with them. Repeat Customer Insights will help you track down where you're losing customers and how to better target new ones.