At Risk and Sleepers are two segments of guests that you should pay special attention to. Sending personalized emails and calls can help bring them back into the fold. Also, offer these guests a repeat purchase at a discount, or survey them about their opinion of your brand - before they leave you for a competitor.
RFM Analysis as a Method for Reducing Marketing Costs and Increasing ROI
RFM analysis improves overall business marketing and also:
increases guest LTV;
boosts the launch of new products/services;
improves customer experience and their loyalty;
reduces the number of lost guests;
increases ROI of advertising campaigns;
makes retargeting campaigns more colombia mobile phone number list effective and successful;
helps to understand your business and make analytics more transparent, etc.
Untargeted advertising campaigns tend to cost a pretty penny. By concentrating efforts on a smaller audience, you can significantly reduce advertising costs, make it more personalized , and think through the creatives and texts themselves based on customer data.
In fact, RFM analysis came from direct marketing. A particular example is reducing the cost of advertising by distributing paper catalogs in mailboxes only to those guests who actually order food afterwards.
The same can be applied to digital marketing and any other advertising activity. Segmenting the base before launching advertising and selecting the right target audience reduces the costs of this advertising and increases ROI .
RFM for remarketing/retargeting campaigns
Remarketing is an approach in advertising when you show an ad to those guests who have visited your site at least once, but show it in completely different places (including competitors' sites, and even Instagram). This ad display mechanic increases the number of clicks and the effectiveness of the campaign as a whole.
The easiest way to use RFM in remarketing is to export the desired guest segments (for example, recent buyers), and later, when setting up advertising on Facebook, create an audience from these sheets to whom the ad will be shown.