Which of your clients are about to leave your company? And what are they worth to you?
RFM analysis helps you with insights to identify which customers are more likely to leave and which of them you should retain because of their value.
RFM is a powerful tool to identify the different groups of customers (from “new” to “big spenders” to “almost lost”) based on their historical purchasing behavior and 3 simple KPI’s: recency, frequency and monetary value. How recently, how often and how much did your customers buy?
Once these “at risk” customers are identified, you hold all the cards to reconnect with them in sending personalized emails, in offering special discounts or newer products, in providing helpful services, …