How Repeat Customer Insights uses RFM segmenting for Shopify stores

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:

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

Promote products that create your best customers

When it's time to run a promotion, how do you pick the products to feature? Best sellers are okay but wouldn't it better to promote the products that crate the best customers? Repeat Customer Insights will analyze your product and buyer behavior to show which products and variants lead to the highest quality customers.

Learn more

Topics: Customer segmenting Rfm

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