Best 5 RFM strategies for segmentation

Secrets of audience segmentation: 5 RFM strategies for pros

If you happened upon this page looking for an RFM strategies, you’ve come to the right place. We’re experts in analysis, segmentation, and strategies for audience segmentation, and can help you personalize automations to build retention at the touch of a button. 

If you haven’t already, check out our blog on Aument’s original five audience segments, which our technology generates for you. Now you know how to refine your targeting, we’re going to provide an RFM segmentation strategy for each of the five customer segments. Let these ideas inspire you to personalize your nurture efforts!

     1) Champions

An effective audience segmentation will identify your longest-standing customers, who usually make the most expensive purchases. At Aument we call these people champions. Champions of your product buy frequently and repeatedly. What strategy should you implement with this valuable audience segment?

RFM strategy for champions:

Share periodic notes with champions that highlight exclusive or unique products. These can be monthly or bi-weekly in general, but if you launch something in particularly high demand, the frequency can be increased on occasion.

Aim not to send any customer — champion or not — excessive emails that repeat the same information as the last email. To avoid doing this, you might want to “drip” information through emails, sharing only one product feature per email for example.

Since this group specifically already has your brand top-of-mind, it is much less necessary to write to them frequently. Nor is it necessary to encourage them to buy with percentage-based-discounts; you might try to increase their spending by emailing them offers on multi-product orders instead. Too busy to manage this level of customization for your champions? Use Aument so that you can focus on growing your business.

     2) Loyalists

The group of customers who buy from you very frequently, but spend less than champions, are called loyalists. Their customer lifetime length is not a priority factor for classification so they could have joined your gaggle in the last month, year, or decade. 

RFM strategy for loyalist:

Set up your rfm segmentation strategy to include emails with sneak-peak news to your loyalists. These needn’t follow a pre-conceived schedule; they can be sent sporadically. Essentially, email loyalists when the news is fresh. If this segment suspects they’re getting something timely, the sense of urgency will keep them coming back to purchase.

Loyal customers are more likely to be active buyers when they feel special, so use language like “for your eyes only” and “sneak peak” in the email subject line to evoke exclusivity. You can get started with ready-to-use, impactful templates in Aument’s platform

     3) Customers at risk

It’s normal during your audience segmentation to discover that your largest group of customers are classified as “at risk”. These people have shopped neither frequently nor recently but do have a history of buying from you. Also, they may have spent only a small amount during their visit to your store.

RFM strategy for customers at risk:

Your largest audience group merits a sliding scale of offers. If you are able to tempt a customer at risk back into your clientele with discounts or savings, then you have another opportunity to impress them with your great products and customer service.

You might start with a 10% discount, or free shipping. Then, build up gradually to a two-for-one offer or a free gift with every purchase.  Of all the RFM strategies, this one does require careful planning and a sizable time commitment, unless you use Aument  to automate your nurture emails.

     4) Lost customers

If a customer stopped buying a long time ago, such that their purchase falls below your average recency rate, they are considered lost. A large proportion of these people will have been purchasing from your brand for a long time previously. 

RFM strategy for lost customers:

Bringing a lost customer back is the biggest challenge your nurture campaigns can tackle. Now is the time to use the knowledge garnered from your audience segmentation to re-ignite their interest. The top strategy should be to re-engage them with your brand and mission. 

Email blasts with stories about your team or product developments might delight them enough to revisit your site, and sprinkling a discount code or two into the mix certainly helps. Sounds like a lot of work? There’s no need to email each lost customer individually, when you can tap into the expertise that Aument offers, designed to facilitate your ecommerce’s growth. 

     5) New customers

New customers have a lot of potential that your rfm segmentation strategy can tap into. This group encompasses all customers who were acquired very recently. In general, newcomers make purchases of a lower value than the average return customer visiting your shop.

RFM strategy for new customers:

For new customers, business owners should start by creating a retention strategy that caters specifically to this group. First of all, people that don’t yet know your brand well, but took a risk on your shop, deserve a thank you email. Offer them a special consultation or unique product offering in this message.

You might also provide the opportunity to sign up for exclusive news blasts right after they make their first purchase. Some companies set up subscriptions through landing pages and the shopping cart, but offering people the chance to opt in after the purchase, not during, is a great excuse for a follow-up. This style of email capture can also be used to direct the new customer back to your website. And you guessed it, we can help with this too! Just reach out.

Now you know how to make the most of your RFM strategies and audience segmentation, nothing is stopping you from sending demand for your offering through the roof. 

Let us know if these tips were useful, or share what else has worked for you via our social media channels. Our team would love to hear from you!

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