Conducting a thorough Shopify Customer Loyalty Analysis is crucial for segmenting and understanding customer behavior effectively. By the Numbers excels in this area, offering sophisticated Customer Recency, Frequency, and Monetary (RFM) segmentation, presented through a user-friendly interface with actionable insights.
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.
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, read the help docs on Customer Loyalty.
