Using a detailed Shopify Customer Loyalty Analysis is crucial if you want to segment and understand customer behaviour properly.
By the Numbers will give you a sophisticated Customer Recency, Frequency, and Monetary segmentation report (RFM), while making it user-friendly and filled with actionable insights.
Understanding Customer Segments
This analysis takes ALL your customers and groups them first by Recency (shown at the top), then by Frequency (shown on the left). and finally, by Monetary value to show you how much they spend.
This leads customers into being grouped by the seven most important segments to understand:
- 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 6 months
- 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.
Why You Shouldn’t Ignore This Analysis
When you segment, you understand your customers behaviour a lot better.
This is something we’ve gone over. But why do you need to understand their behaviour? So you can personalize your store for them and have the data to make the right personalization decisions.
- 76% of Customers are more likely to buy from businesses that personalize
- 78% of customers are likely to tell others about your brand and repurchase from you
Personalizing means you’re playing the long game the right way. You create a cult-like following of people who genuinely love your products.
To better illustrate the value of customer segments, let’s do an example.
Suppose Jane made a purchase 10 months ago,
Looking at our report, this puts Jane in the At-Risk segment as she is very likely to churn and never return to your store.
But you can win her back with special offers and discount codes.
If Jane came back 5 months after her initial purchase, 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.
Leveraging Customer Loyalty Analysis
Understanding the nuances of customer loyalty allows you to tailor your marketing strategies more effectively especially when paired with Klaviyo marketing. The insights from Shopify Customer Loyalty Analysis empower you to make data-driven decisions, enhancing customer retention and value. By the Numbers not only facilitates this analysis but also simplifies it, making it an essential tool for any Shopify store aiming to optimize customer engagement and loyalty.
Ready to transform your customer engagement strategy? By the Numbers is available on the Shopify App Store. Start your free trial today, no credit card required, and experience the power of detailed Shopify Customer Loyalty Analysis in growing your business
For a more in depth explanation, the Shopify RFM Matrix will hand you your answers.
By the Numbers
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