Remarketing is an advertising method in which advertisements are shown to customers who have previously visited a website. The information is displayed on other sites, including competitors' sites. This approach helps increase clicks and improve the effectiveness of the advertising campaign.
RFM can be used in remarketing by exporting the desired customer segments (e.g. recent purchasers) and then using these lists to create audiences to show ads to.
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Checklist: How to Achieve Your Goals in Negotiations with Clients
RFM analysis for creating mailings
Let's look at an example of RFM analysis for an email newsletter.
The departing
Segment Contents of the newsletter
Lost savings As a rule, such chinese singapore b2c cell phone number data clients will never be returned, so it is not worth wasting time on them. The optimal solution is to use an automated reactivation chain
Disposable
The rare ones are leaving To get these customers back, it is necessary to understand the reasons for their departure. To obtain feedback, it is recommended to conduct a reactivation mailing, including a survey
The outgoing constants To return such customers, maximum efforts are required. It is recommended to use reactivation chains, feedback requests, mailings with bonus offers and loyalty programs.
Good constants leaving
VIPs leaving
Sleeping
Segment Contents of the newsletter
Sleeping one-time with a small check These clients usually remember the company. To activate them, it is recommended to send regular mailings providing information about current promotions and special offers.
Sleeping rare with a small check
Sleeping rare with average check
Sleeping rare with high check
Sleeping constants with a small check Such customers have recently made purchases but then stopped interacting with the company. In this situation, it is important to find out what influenced their behavior. The search for reasons can be carried out using mailings containing information about current promotions and surveys
Sleeping regulars with average check
Sleeping constants with high check
Constant
Segment Contents of the newsletter
Newbies with a small check To effectively interact with this category of clients, it is necessary to implement a welcome chain or welcome letters. In the messages, it is important to describe in detail all the benefits of cooperation with the company, provide answers to frequently asked questions and training materials
Newbies with an average check
Newbies with high check. Potential VIPs In addition to the standard welcome chain, it is recommended to offer this category of clients something additional.
Regulars with a small check The average purchase price needs to be increased. Customers need to be attracted to upsell. The newsletter should include information about products that complement their initial purchase.
Regulars with an average check
Regulars with high check Such clients bring good profits. However, too many mailings can irritate them.
Regulars with a small check It is worth actively looking for opportunities for upselling in order to increase the average check. In e-mail newsletters, it is recommended to present additional products to customers that may interest them
Regulars with an average check Even the best customers always have the potential to increase their average purchase value. Special offers and information about related products can be used
VIP It is recommended to invite representatives of this category of clients to participate in a loyalty program. For example, offer membership in a club of the best buyers
Abbreviated RFM Analysis
Often, individual indicators from RFM analysis are used to form segments.
RF analysis
This analysis covers the recency of transactions and their frequency. It is worth noting that Monetary (purchase amount) may depend on Frequency (purchase frequency), so it is not necessary to take it into account.
Segmentation based on RF analysis provides an understanding of how often customers place orders in a given period and allows you to identify those who have recently shown activity and maintain ongoing interaction with the company.
RM-analysis
With the help of RM analysis, you can see the distribution of customers by the Recency and Monetary parameters. This method helps to find the customers who bring the most profit and those whose contribution to the total revenue is insignificant.
FM analysis
FM analysis displays the distribution of customers depending on the frequency and amount of purchases. The method allows you to identify customers who place large orders despite their low frequency, as well as those who purchase frequently but with small checks.