Segmenting your customers into meaningful groups can be a challenging task, but with By the Numbers, you can easily segment and understand your customers’ behavior. This Shopify app not only provides Customer Recency, Frequency, and Monetary (RFM) segmentation, but also presents data in an easy-to-understand interface and offers actionable best practices.
Understanding Customer Segments
By the Numbers segments customers based on the frequency and monetary value of their purchases, as well as the number of orders, which help determine the value of each customer to your business. These segments include:
- Best customers – Customers who have made four or more purchases and at least one within the last 30 days
- Loyal customers – Customers who have made four or more purchases and at least one within the last 6 months
- Promising customers – Customers who have made 2-3 purchases within the last 6 months
- Defecting customers – Customers who have made only one purchase within the last 6 months
- Recent customers – Customers who have made only one purchase within the last 30 days
- At-risk customers – Customers who last purchased 6-12 months ago
- Dormant customers – Customers who last purchased 12-18 months ago
For a business to grow and stay healthy, the aim is to have more customers in the Best, Loyal, and Promising segments, as they are the most valuable.
Diving into an example
To better illustrate the value of customer segments, let’s consider an example. Suppose Jane Doe made a purchase ten months ago, putting her in the At-risk segment. As she is very likely to churn and never return to your store, you can win her back with special offers and discount codes.
If Jane came back three months ago and made two more purchases, she would move into the Promising segment, increasing her value to your business. You can retain promising customers by offering them small discounts and asking if they are satisfied with their purchases.
Finally, if she made another purchase in the current month, she would be in the Best segment. You can leverage Best customers by informing them about new products, adding them to your loyalty programs, and asking them to be your store ambassadors.
For a more in depth explanation, read the help docs on Customer Loyalty.
By the Numbers is available on the Shopify App Store, and you can try it for free without providing your credit card details. Give it a try and see how it can help grow your business.