The success of using RFM analysis in marketing has been proven by hundreds of retailers, restaurateurs, beauty business owners and other entrepreneurs.
Advantages of RFM analysis
RFM is applicable in many areas – e-comm, HoReCa, beauty industry, offline retail and others;
With RFM you will learn more about each segment, each guest as a whole, and who your best guests are;
RFM helps to build highly effective targeted chile mobile phone number list advertising campaigns;
RFM helps improve customer experience and loyalty;
When combined with other marketing tools, it provides detailed guest analytics and useful conclusions based on it;
RFM reduces the cost of marketing activities by optimizing the target audience;
Reduces the percentage of negative reactions from guests to advertising by optimizing the target audience.
Limitations of RFM Analysis
You cannot rely on the results of RFM analysis for guests who made one purchase;
When selling one product at a time, you should also not rely on the results of RFM analysis;
RFM is based on existing purchase data and is not applicable to your potential guests;
Without using special services, manual calculations take quite a lot of time, especially if you have a large client base;
Showing too many ads to one specific segment can lead to “oversaturation” and reduce the effectiveness of your campaigns.
Our recommendations
Implement RFM analysis into your business - first to understand your guests, then to launch advertising that hits the mark;
Use Passteam for a comprehensive analysis of your database;
Set up automatic mailings to segments based on the results of RFM analysis.