Sending behaviour triggered automated email campaigns has a huge array of benefits. In most cases a one size fits all message is created based on the customer behaviour. In all circumstances we will see an uplift in results.

But what if you had the opportunity to easily take those results to the next level?

We’ve seen huge increases in results and revenue where marketers layer both real time behaviour with RFM customer segments.  RFM = Recency, Frequency, Monetary. Distilled down further in less marketing jargon – When they last purchased, how often they purchase and how much they spend.

By analysing RFM you’re able to identify what customer segment they fall into so that you can further tailor your automation messages and offers accordingly– enabling you to drive huge increases in revenue or results.

There are many RFM segments, but these are the 4 we think you should kick off with:-

1.

Typical Customer

A typical customer shouldn’t be confused with an ideal customer. This segment helps you understand what the majority of your customer base looks like. Often brands think they know how a typical customer behaves and purchases, but often the real data will tell a different story. Throw in a global pandemic and changes in consumer buying behaviour, you will most probably have a different cohort than you did a few months ago.

Understanding and tracking your typical customer on a regular basis will help drive not only the marketing strategy but also the overall business strategy

2.

Frequent Customer

Do you know who buys most frequently? And how many of your customers behave like this? Unfortunately for most brands this isn’t a huge segment of the database, but is a segment you will want to speak to differently in your lifecycle marketing.  This is a group that are rich pickings for seeking reviews, referring friends or even increasing basket size. They are loyal to your brand.

Not only does this insight drive great strategy for marketing but also helps the business understand what frequent looks like for that particular brand.

3.

Lapsing Customer

A company loses between 20 – 40 percent of its customers every year. Ensuring you know who this cohort is before they lapse will help you drive this number down. Analysing your customer base by RFM will help you identify those that are lapsing, so that you’re able to create messaging and offers that will entice them back to the brand to purchase or take action.

4.

Lapsed Customer

There’s no doubt that you will have a segment of your customers that have just stopped purchasing from you, however that doesn’t mean they’ve stopped coming to your brand. For some reason they just stopped purchasing. If you know who this segment is when they’ve abandoned a basket for example, adapting your automated basket abandonment campaign with a message targeted specifically to bring back lapsed customers might just tip them over to make that purchase.

Once you have identified these customers, now’s the time to create offers and messaging for each lifecycle automations. For each automated campaign you should now have 4 different messages that will prompt the customer to take the next best action using the best content, offers and signposts.

We recommend you start by applying these tactics to the campaigns that will drive the most impact in revenue uplift such as Basket/Browse Abandonment or Post-Purchase. Your email marketing service provider will be able to assist you in setting these up.

If you would like to know how Pure360 uses analytics to supercharge our customer’s lifecycle automations please get in touch.