Wiki source code of RFM segmentation
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| 1 | (% class="lead" %) | ||
| 2 | **RFM segmentation** is a method used to analyze customer value. | ||
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| 4 | RFM segmentation divides customers into three groups: | ||
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| 6 | * **Recency** – how much time had passed since the last purchase. The less time has passed, the more likely the customer buys again soon. | ||
| 7 | * **Frequency** — the more often the customer buys, the more likely they buy again. | ||
| 8 | * **Monetary** — the amount of transactions. The more money the customer has spent, the more likely they are to spend more. | ||
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| 10 | A score from 1 to 5 is assigned to each dimension. The maximum score represents the preferred behaviour. All customers are divided into 5 equal groups. | ||
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| 12 | For example, M5 segment includes those customers who made purchases for a larger amount of money, M1 segment includes those who spent the least amount of money. | ||
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| 14 | == Viewing RFM Segments == | ||
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| 16 | **Customers → RFM Segments** section displays information on RFM segments. The page has 3 tabs: | ||
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| 18 | * RF — data about how much time had passed since the last customer purchase (R) and frequency of purchases (F). | ||
| 19 | * RM — data about how much time had passed since the last purchase (R) and amount of transactions (M). | ||
| 20 | * FM — data on the frequency of purchases (F) and the amount of transactions (M). | ||
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| 22 | In the drop-down list (see below), you can select the segment on which the RFM will be calculated. To do this, you should [[create a segment>>doc:Main.Smart_Communications.SMC_Use.Customers.User_segments.Segment_builder.WebHome]]. | ||
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| 24 | |(% style="border-color:white" %){{lightbox image="image1.png"/}} | ||
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| 26 | A cell in this table corresponds to one segment. For example, segment R5-M5 includes customers who bought products for the amount from EUR 449 to 7,985 and the last purchase was made from 5 to 42 days ago. | ||
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| 28 | (% class="box infomessage" %) | ||
| 29 | ((( | ||
| 30 | The period for RFM segmentation is set in the project settings during the project integration. As a rule, the period is set to 1 year. Older receipts are not taken into account. If necessary, the period can be changed by sending request to our technical support team. | ||
| 31 | ))) | ||
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| 33 | In the table, the segments are highlighted in different colors. For example, the green colour highlights loyal customers who buy often and the last purchase was made recently. Those who bought little and a long time ago are highlighted in grey. | ||
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| 35 | By clicking a table cell, the segment information is displayed: | ||
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| 37 | * Segment metrics; | ||
| 38 | * List of customers in the segment. | ||
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| 40 | |(% style="border-color:white" %){{lightbox image="image2.png"/}} | ||
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| 42 | (% class="box infomessage" %) | ||
| 43 | ((( | ||
| 44 | **RFM segments** in [[Smart Communication>>doc:Main.Smart_Communications.WebHome]]** **and [[Loymax Loyalty>>doc:Main.General_information.Loymax_Loyalty.WebHome]] are **different **indicators and **do not depend on each other**. | ||
| 45 | In Smart Communication: | ||
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| 47 | * RFM segments are used to create [[mailings>>doc:Main.Smart_Communications.SMC_Use.Mass_messaging.WebHome]]; | ||
| 48 | * RFM segment thresholds are unchanged. | ||
| 49 | ))) |