Customer Segmentation Model (RFM)
Understanding the Recency, Frequency, and Monetary Value (RFM) of your customer base helps you to send the right messages to the right customers at the right time, making your business more reactive to churning customers.
Segmenting customer data is a technique used by many organisations to manage unpredictable spending patterns. But for B2B Wholesalers and Distributors, RFM Analysis is a game-changer!
Segment your customers
Recency, Frequency and Monetary Analysis transforms customer and sales data into valuable insights that simplify your customer segmentation strategy. By regularly calculating the buying patterns of your entire customer base using an automated system, RFM Analysis enables product sellers to evaluate customer behaviour across three areas; recency, frequency, and monetary value. Using these insights, you can deliver more focused communications and start driving growth.
Focus on the right customers
When your database is overcrowded with hundreds or even thousands of customers, RFM Analysis will automatically recalculate your data, from who is spending the most to who is slipping away, so you never lose sight of where to focus your efforts first. Maintaining real-time awareness of your customer data is the key to winning back lost customers and building stronger relationships with those slipping through the net, making RFM Analysis the ultimate tool to drive growth in B2B wholesale, distributor and manufacturing businesses.
Benefits of Automated RFM Analysis
- Track customer spending behaviour in real-time so you can take proactive measures for quick results with RFM online
- Win back your churning customers for continuous revenue growth
- Elevate your onboarding process so new customers quickly become regular buyers
- Identify opportunities for product promotion and upsell to increase average order value
- Maximise the lifetime value of your customers and ensure confidence in order repeatability
- Shorten the sales cycle by nurturing prospective customers into profitable opportunities
How our RFM Analysis Software supports the growth of small businesses
Foundation for Growth
RFM segmentation provides a solid foundation for businesses to truly understand their customer base. Segmenting customers based on purchasing behaviour forms the basis for tailored marketing strategies and enhanced customer relationships.
Scalability
As businesses expand, RFM Analysis scales accordingly to accommodate growing datasets. Evolving customer data is imported seamlessly without the need for manual updates or new expertise, making RFM online simple.
ROI Maximisation
Online RFM analysis allows smaller business to allocate their resources more effectively by pinpointing the best opportunities for targeted marketing efforts, maximising return on investment.
Informed Decision-Making
RFM Analysis helps SMEs make smarter decisions. With data-driven insights, businesses are better equipped to have confidence in commitments that are validated by data rather than guesswork.
Competitive Advantage
Staying one step ahead of the competition is supported by RFM Analysis which helps businesses differentiate themselves in a crowded industry.
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RFM Analysis Software FAQs
What is RFM Analysis
Recency, Frequency, and Monetary value (RFM) analysis is a customer segmentation method used by organisations to identify and prioritise customers based on their buying behaviour for more targeted campaigns.
How can I use RFM Analysis in my business?
Use RFM Analysis to segment customers into cohorts, then develop tailored engagement strategies based on their purchasing behaviour. For example, you could look to re-engage at-risk customers to prevent churn with a win-back campaign.
Does it cost extra to have access to RFM Analysis in Prospect CRM?
RFM Analysis is built into Prospect CRM and is available to customers on Professional and Advanced subscriptions!
How can I turn my RFM Analysis into actionable insights?
Analyse where your customers sit in the RFM segments to send highly targeted marketing campaigns to drive retention, loyalty and sales growth. Consider the types of campaigns you could run based on each RFM segment.