What are the RFM_Group and RFM_Segment fields and what are they for?
The Icomm omnichannel masterdata profile includes the RFM_Group and RFM_Segment fields. These fields are designed to group customers into 4 main groups (RFM_Group) and 15 more specific segments (RFM_Segment), based on their purchasing behavior.
Using this data, the platform facilitates customer segmentation and allows the development of more effective and personalized marketing actions.
RFM_Group is the main grouper, based mainly on purchase frequency. Divide customers into four categories:
1. BEGINNERS: Buyers with F=1, that is, initial buyers or buyers with low purchasing frequency.
2. FREQUENT: Buyers with F=2/3, representing an average purchase frequency.
3. LOYAL: Buyers with F=4/5, indicating a high purchasing frequency.
4. PROSPECTS: Users who have not yet made a purchase.
RFM_Segment is a more granular secondary stitcher that divides the above groups into 16 segments. Each segment has specific characteristics based on the recency, frequency and monetary value of purchases.
1. BEGINNERS_NEEDS_ATTENTION
It is a segment of beginner buyers that requires attention. These customers have purchased a moderate amount of time ago (medium recency), only once (low frequency), and their monetary value may vary.
Recommendations:
• Follow-up emails: Send follow-up emails with incentives for the second purchase.
• Survey Discounts: Offer discounts or rewards for completing a survey about your experience.
2. BEGINNERS_LOSE_IT
They are first-time buyers who are missing out. They have bought a long time ago (low recency), only once (low frequency) and spent little (low monetary value).
Recommendations:
• Reactivation emails: Send reactivation emails with exclusive offers.
• Limited-time discounts: Offer limited-time discounts to encourage a new purchase.
3. BEGINNERS_HIBERNATING
Beginner buyers in hibernation. They have bought a long time ago (low recency), only once (low frequency) but they spent a lot (high monetary value).
Recommendations:
• Personalized recommendations: Send personalized emails with product recommendations based on your previous purchase.
• Loyalty programs: Offer loyalty programs to retain these valuable customers.
4. BEGINNERS_PROMISING
They are promising beginner buyers. They have purchased recently (high recency), only once (low frequency), and spent little (low monetary value).
Recommendations:
• Thank you emails: Send thank you emails and product suggestions.
• Discounts for next purchase: Offer discounts on your next purchase to encourage repeat purchases.
5. BEGINNERS_POTENTIAL_VIP
Beginner buyers with VIP potential. They have bought recently (high recency), only once (low frequency) but spent a lot (high monetary value).
Recommendations:
• Loyalty programs: Offer loyalty programs or VIP memberships.
• Highlight premium products: Send personalized emails highlighting premium products.
6. FREQUENT_NEEDS_ATTENTION
Segment of frequent buyers who require attention. These customers have purchased a moderate amount of time ago (medium recency), with moderate frequency (F=2-3) and their monetary value varies.
Recommendations:
• Follow-up emails: Send follow-up emails with product recommendations.
• Exclusive discounts: Offer exclusive discounts for a limited time.
7. FREQUENT_HIBERNATING
Frequent buyers in hibernation. It means that they have bought a long time ago (low recency), with moderate frequency (F=2-3) and their monetary value varies.
Recommendations:
• Reactivation emails: Send reactivation emails with exclusive offers.
• Custom Campaigns: Create custom campaigns to keep them interested.
8. FREQUENT_PROMISING
Frequent and promising buyers. They have purchased recently (high recency), with moderate frequency (F=2-3) and low monetary value.
Recommendations:
• Progressive discounts: Offer progressive discounts for increased spending.
• Product recommendations: Send recommendations for complementary products.
9. FREQUENT_POTENTIAL_VIP
They are frequent buyers with VIP potential. They have purchased recently (high recency), with moderate frequency (F=2-3) and high monetary value.
Recommendations:
• VIP Programs: Offer exclusive VIP or loyalty programs.
• High-end products: Send recommendations of high-end products.
10. LOYAL_NEEDS_ATTENTION
It is a segment of loyal buyers who require attention. They have purchased a moderate amount of time ago (medium recency), with high frequency (F=4-5) and their monetary value varies.
Recommendations:
• Thank you emails: Send thank you emails and product recommendations.
• Exclusive discounts: Offer exclusive discounts for future purchases.
11. LOYAL_AT_RISK
They are loyal buyers at risk. They have bought a long time ago (low recency), with high frequency (F=4-5) and low monetary value.
Recommendations:
• Reactivation emails: Send reactivation emails with exclusive offers.
• Incentives for increased spending: Offer incentives for increased spending, such as volume discounts.
12. LOYAL_PROMISING
Loyal and promising buyers. They have purchased recently (high recency), with high frequency (F=4-5) and low monetary value.
Recommendations:
• Loyalty promotions: Offer loyalty promotions.
• Product recommendations: Send complementary product recommendations to increase the average ticket.
13. LOYAL_CANT_LOSE
These are loyal buyers who cannot be missed. They have bought a long time ago (low recency), with high frequency (F=4-5) and high monetary value.
Recommendations:
• Exclusive benefits: Offer exclusive benefits such as early access to new products.
• VIP Offers: Send personalized emails with VIP offers.
14. LOYAL_VIP
Loyal VIP buyers. They have purchased recently (high recency), with high frequency (F=4-5) and high monetary value.
Recommendations:
• VIP Memberships: Offer VIP memberships or exclusive loyalty programs.
• Premium products: Send personalized emails highlighting premium products.
15. PROSPECTS
They are potential customers who have not yet made a significant purchase. They are new to the database and have not shown a clear pattern of behavior.
Recommendations:
• Welcome emails: Send welcome emails and first purchase incentives.
• Trial promotions: Offer trial promotions and newsletter subscriptions.
The RFM_Group and RFM_Segment fields provide valuable data to segment and better understand customers. This information allows us to develop more effective and personalized strategies, improving customer retention and increasing customer lifecycle value.
Using this data, the platform facilitates customer segmentation and allows the development of more effective and personalized marketing actions.
Diagram of the RFM segments:
What are RFM_Group and RFM_Segment?
RFM_Group
RFM_Group is the main grouper, based mainly on purchase frequency. Divide customers into four categories:
1. BEGINNERS: Buyers with F=1, that is, initial buyers or buyers with low purchasing frequency.
2. FREQUENT: Buyers with F=2/3, representing an average purchase frequency.
3. LOYAL: Buyers with F=4/5, indicating a high purchasing frequency.
4. PROSPECTS: Users who have not yet made a purchase.
RFM_Segment
RFM_Segment is a more granular secondary stitcher that divides the above groups into 16 segments. Each segment has specific characteristics based on the recency, frequency and monetary value of purchases.
Detail of the segments and recommended strategies
1. BEGINNERS_NEEDS_ATTENTION
It is a segment of beginner buyers that requires attention. These customers have purchased a moderate amount of time ago (medium recency), only once (low frequency), and their monetary value may vary.
Recommendations:
• Follow-up emails: Send follow-up emails with incentives for the second purchase.
• Survey Discounts: Offer discounts or rewards for completing a survey about your experience.
2. BEGINNERS_LOSE_IT
They are first-time buyers who are missing out. They have bought a long time ago (low recency), only once (low frequency) and spent little (low monetary value).
Recommendations:
• Reactivation emails: Send reactivation emails with exclusive offers.
• Limited-time discounts: Offer limited-time discounts to encourage a new purchase.
3. BEGINNERS_HIBERNATING
Beginner buyers in hibernation. They have bought a long time ago (low recency), only once (low frequency) but they spent a lot (high monetary value).
Recommendations:
• Personalized recommendations: Send personalized emails with product recommendations based on your previous purchase.
• Loyalty programs: Offer loyalty programs to retain these valuable customers.
4. BEGINNERS_PROMISING
They are promising beginner buyers. They have purchased recently (high recency), only once (low frequency), and spent little (low monetary value).
Recommendations:
• Thank you emails: Send thank you emails and product suggestions.
• Discounts for next purchase: Offer discounts on your next purchase to encourage repeat purchases.
5. BEGINNERS_POTENTIAL_VIP
Beginner buyers with VIP potential. They have bought recently (high recency), only once (low frequency) but spent a lot (high monetary value).
Recommendations:
• Loyalty programs: Offer loyalty programs or VIP memberships.
• Highlight premium products: Send personalized emails highlighting premium products.
6. FREQUENT_NEEDS_ATTENTION
Segment of frequent buyers who require attention. These customers have purchased a moderate amount of time ago (medium recency), with moderate frequency (F=2-3) and their monetary value varies.
Recommendations:
• Follow-up emails: Send follow-up emails with product recommendations.
• Exclusive discounts: Offer exclusive discounts for a limited time.
7. FREQUENT_HIBERNATING
Frequent buyers in hibernation. It means that they have bought a long time ago (low recency), with moderate frequency (F=2-3) and their monetary value varies.
Recommendations:
• Reactivation emails: Send reactivation emails with exclusive offers.
• Custom Campaigns: Create custom campaigns to keep them interested.
8. FREQUENT_PROMISING
Frequent and promising buyers. They have purchased recently (high recency), with moderate frequency (F=2-3) and low monetary value.
Recommendations:
• Progressive discounts: Offer progressive discounts for increased spending.
• Product recommendations: Send recommendations for complementary products.
9. FREQUENT_POTENTIAL_VIP
They are frequent buyers with VIP potential. They have purchased recently (high recency), with moderate frequency (F=2-3) and high monetary value.
Recommendations:
• VIP Programs: Offer exclusive VIP or loyalty programs.
• High-end products: Send recommendations of high-end products.
10. LOYAL_NEEDS_ATTENTION
It is a segment of loyal buyers who require attention. They have purchased a moderate amount of time ago (medium recency), with high frequency (F=4-5) and their monetary value varies.
Recommendations:
• Thank you emails: Send thank you emails and product recommendations.
• Exclusive discounts: Offer exclusive discounts for future purchases.
11. LOYAL_AT_RISK
They are loyal buyers at risk. They have bought a long time ago (low recency), with high frequency (F=4-5) and low monetary value.
Recommendations:
• Reactivation emails: Send reactivation emails with exclusive offers.
• Incentives for increased spending: Offer incentives for increased spending, such as volume discounts.
12. LOYAL_PROMISING
Loyal and promising buyers. They have purchased recently (high recency), with high frequency (F=4-5) and low monetary value.
Recommendations:
• Loyalty promotions: Offer loyalty promotions.
• Product recommendations: Send complementary product recommendations to increase the average ticket.
13. LOYAL_CANT_LOSE
These are loyal buyers who cannot be missed. They have bought a long time ago (low recency), with high frequency (F=4-5) and high monetary value.
Recommendations:
• Exclusive benefits: Offer exclusive benefits such as early access to new products.
• VIP Offers: Send personalized emails with VIP offers.
14. LOYAL_VIP
Loyal VIP buyers. They have purchased recently (high recency), with high frequency (F=4-5) and high monetary value.
Recommendations:
• VIP Memberships: Offer VIP memberships or exclusive loyalty programs.
• Premium products: Send personalized emails highlighting premium products.
15. PROSPECTS
They are potential customers who have not yet made a significant purchase. They are new to the database and have not shown a clear pattern of behavior.
Recommendations:
• Welcome emails: Send welcome emails and first purchase incentives.
• Trial promotions: Offer trial promotions and newsletter subscriptions.
The RFM_Group and RFM_Segment fields provide valuable data to segment and better understand customers. This information allows us to develop more effective and personalized strategies, improving customer retention and increasing customer lifecycle value.
Updated on: 08/01/2024
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