Customer Segments

From Soulmates to Ex-Lovers, discover which Customer Segment is most valuable to your shop using REVEAL’s RFM Segmentation module.

RFM analysis reveals data anomalies that will allow eCommerce managers to understand which are the most important groups of customers when they balance the customer acquisition cost with the margin they generate.

RFM segmentation readily answers these questions for your business:

  • Who are my best customers?
  • Which customers are at the verge of churning?
  • Who has the potential to be converted into more profitable customers?
  • Who are lost customers that you don’t need to pay much attention to?
  • Which customers you must retain?
  • Who are your loyal customers?
  • Which group of customers is most likely to respond to your current campaign?

The top benefits of RFM Analysis are:

  • Better email marketing
  • Higher customer lifetime value
  • Successful new product launches
  • Outstanding user engagement and loyalty
  • Lower churn rate
  • Better ROI on marketing campaigns
  • Success in remarketing
  • A better understanding of your business
  • Overall higher profits and lower costs

Buying behavior is one of the most important indicators of future repeat purchases and customer loyalty.

REVEAL applies RFM Segmentation and automatically display customer groups such as VIP, Active, Dormant, Lost customers, so that eCommerce professionals can reward each group according to its value.

RFM segmentation is a method to identify the most important type of customers by grouping them according scores to their recency, frequency & monetary values. 

That allows companies to target specific clusters of customers with more relevant for their particular behavior – and thus generating higher rates of response, increased loyalty and better customer lifetime value.

Once REVEAL accesses RFM values from your customer historical data, REVEAL will assign a score from one to five to recency, frequency and monetary values individually for each customer. Five is the best/highest value, and one is the lowest/worst value. A final RFM score is calculated simply by combining individual RFM score numbers.

RFM values and RFM scores are different. Value is the actual value of R/F/M for that customer, while the Score is a number from 1-5 based on the value.

 We call a VIP customer the one who is the most active, placed the highest number of orders and spent the highest amount of money compared to the other customers. Knowing who they are, how many and how much they contribute to your revenue, helps e-commerce professionals tailor their communication and customer experience with this group. These are precious customers you don’t want to lose.

On the other hand, Lost customers who placed their last order a long time ago may not worth the effort of bringing back.

We’ll assist you in defining the point values for R, F, M so they make sense for your type of activity and business size. 

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