When analyzing your customers, it's important to compare how they perform relative to the other customers.
If you have a customer who has spent $1,000 in their lifetime, would you consider them a good customer?
It's hard to answer that.
$1,000 sounds like a lot.
But if your average order is $800, that's not even two orders so they aren't great.
It's a different story if your average order is $50 or $20,000.
The RFM algorithm in Repeat Customer Insights helps to do these relative comparisons. It doesn't care what your actual numbers are, only how they compare to the others.
$1, $100, or $1,000 orders don't matter to it.
1/100, 1/10, or 5x of your average order amounts are what matters.
That's how Repeat Customer Insights can work well for large Shopify Plus stores as well as smaller, side businesses. The algorithm self-adjusts automatically for you.
If you haven't installed yet, it might be worth a look. It comes with a free trial and I bet you'll learn something new about your customers after installing.
Segment your customers automatically with RFM
Segmenting your customers has always been touted as a powerful marketing tool but many stores avoid it because it can be time-consuming.
Repeat Customer Insights will automatically segment your entire customer base for you based on the valuable data Shopify has already collected for you. Ranging from 5 to 30 to over 125+ different segments using RFM and other models, you can pick how much power you want to harness.