I was reading an article by Shopify about using email marketing, lifecycle automation, and RFM. There's a lot of good information in it except they slightly missed the mark with RFM: Recency is the number of days since a subscriber’s or customer’s last purchase. An R0 purchased today. An R365...
An interesting way to view cohorts is to look at their running totals or what I call the cumulative values. That's where the previous month's values are carried over to the next. e.g. $100,000 spent in month 1, $150,000 by month 2. Using the cumulative values is a great way...
The Order Sequencing Analysis is a report unique to Repeat Customer Insights. It shows a view of your customer data you've probably never seen before, but it can be confusing to look at the first time. The goal of this report is to show you how your customer's behavior changes...
Whenever I hear about Big Data and AI I think of Robin Williams. Phenomenal cosmic power... Itty bitty living space Jokes aside, the hard thing with Big Data, AI, and all the other buzzwords is that you have to have a PhD in order to understand it. Even then, some...
One thing you can do to keep your most loyal customers around is to send them a free gift unannounced. Done right, it can be a surprise that they remark about for a long-time afterward. You'll want to check a few things before you send it: Send it shortly after...
The reason to collect and analyze metrics is to help make a decision. No decision, no point in collecting metrics. Sometimes you'll want to collect metrics ahead of time though. That way when you're ready to make a decision, you have enough historical data to support you. That's why every...
While Average Customer Purchase Latency is much better at predicting defecting customers, it can be difficult to calculate unless you use software like my app. An alternative is to use RFM. It's a bit easier to calculate (the core is three simple sorts) and much easier to understand. RFM also...
Customer defection happens when a customer should have bought but they haven't. Either they bought from someone else (competitor) or didn't buy again at all. In either case, defecting when that happens can be a powerful trigger for customer retention. Get those customers to come back to your store and...
Lifetime Value (and Customer Lifetime Value) are important metrics for Shopify stores when it comes to customer segmenting. Its limitations are that it only looks at a value at a point in time. A LTV of $1,000 might be really great. Really low. Or even could be a customer who...
Early on in a recent recession, someone [1] gave the advice of: Focus on getting two new customers each month. Get out there and hustle. Ignore the rest of the recession. Though aimed at smaller software companies who earn recurring revenue, this advice can apply to any business. Two new...
Each tip includes a way to improve your store: customer analysis, analytics, customer acquisition, CRO... plus plenty of puns and amazing alliterations.