I frequently get asked about how Repeat Customer Insights works and what goes into its customer scoring.
Repeat Customer Insights uses three values in its grading:
- How recent a purchase was made (Recency)
- How many purchases have been made (Frequency)
- How much has been purchased (Monetary)
This is the classic RFM segmenting that has been used by decades in database marketing.
Each customer is graded in all three areas from 5 (best) to 1 (worst) relative to your other customers. So a customer with a Monetary of 5 means that they are in the top 20% of your customers in terms of money spent, a score of 3 would be the middle 20%, etc.
The final letter grade (A-F) each customer gets is a summary of their three grades and acts as a quick visual indicator for the customer. Recency is the most powerful factor so it makes up the majority of the letter grade.
Shopify sends me new customer and order data right away and the grading is recalculated every hour round the clock.
Have you tried out Repeat Customer Insights yet? You can with a free 14 day trial.
Eric Davis
Learn what your customers are actually doing instead of just guessing
One of the best ways to build a sustainable business starts by getting your customers to come back. Mastering that simple process can be difficult, but builds a lifelong business.
Repeat Customer Insights can help you understand your customer's behavior. With its collection of behavior reports, you can see what they're actually doing instead of guessing and having your efforts fall flat.