Using Customer Grades to watch for customer trends

Repeat Customer Insights builds on top of RFM for its Customer Grading.

That means each grade has a lot of information built into it from RFM, plus a little something extra from me.

Even though it's just a single letter grade, it can be powerful for customer segmenting. Even if that's the main segmenting you use, you'll be miles ahead of competitors doing basic segmentation.

The letter grades also let you evaluate your customer base as a whole.

Seeing a lot of C's and equal A's and F's? Sounds like things are stable and maybe a bit stagnant.

Seeing more A's and B's? Repeat customers are fueling your success.

Or more D's and F's are telling you that things are heading south and you need new customers and a way to recover lapsed customers.

Monitoring the shifts in the segment sizes over-time can help you spot larger trends before they get away from you. Since they are built on top of RFM, they'll automatically adjust as needed as new customer behavior comes in every day.

(Plus with customer tagging you can see those grades in your Shopify admin and have them feed into other apps)

Eric Davis

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Topics: Customer grading Rfm Customer segmenting

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