RFM based Marketing Automation feature segments customers based on purchases for a specific time interval made by them.
NOT all your customers are created equal. Thus, instead of reaching out to all of them and treating them equally. Execute your marketing strategies based on segmentation, that can prove to be highly beneficial for your business in future.
What do RFM Segmentation stands for?
- Recency – Enables you to acknowledge the fact that when was the last time a customer made any purchase order, Deduct most recent purchase date from today to calculate the recency value- 1 day ago? 15 days ago? 90 days ago?
- Frequency – Brings you the result how regularly does this customer makes a purchase. As, for example, if 7 orders were placed over a period of time, their frequency is 7.
- Monetary – (Purchase value) Facilitates you regarding the amount of money spent by the customer in a particular tenure. Total up the money from all transactions to get the M value.
Wondering how to segment customers on WooCommerce store?
CUSTOMER ORDER RECENCY RATING:
The HubSpot Woocommerce Integration assigns recency in the range of 1-5, based on the last purchase of the customer.
However, a customer with recent purchases needs more attention than the ones who had made purchases year before.
At the same time, it is imperative to keep the customers engaged and hold them for long. The ones who did not actively participate in purchases for a long time (decreasing the recency).
- 5 (purchased within the last 30 days)
- 4 (purchased within the last 31 to 90 days)
- 3 (purchased within the last 91 to 180 days)
- 2 (purchased within the last 181 to 365 days)
- 1 (purchased more than 365 days ago)
CUSTOMER ORDER FREQUENCY RATING:
Based on the total number of orders made by a customer since day 1. The frequency ratings can be assigned as:
- 5 (20 or more orders)
- 4 between 10 and 20 orders)
- 3 (between 5 and 10 orders)
- 2 (between 2 and 5 orders)
- 1 (1 order)
CUSTOMER ORDER MONETARY RATING:
The monetary ratings can be assigned in the same way as frequency rating by analyzing the total amount of money spent on day 1 in the following manner:
- 5 (spent more than $1,000)
- 4 (spent between $750 and $1,000)
- 3 (spent between $500 and $750)
- 2 (spent between $250 and $500)
- 1 (spent less than $250)
Automate RFM segmentation through HubSpot Workflows:
The use of RFM segmentation comes the moment when admin checks the metrics and delivers right actions to their customers at the right time.
HubSpot’s workflow with HubSpot WooCommerce Integration is ready to perform all the actions.
For example – let’s say you have a customer with Monetary rating 5 (who spent more than $1000), order Frequency rating 5 (more than 20 orders) and average order of the customer is 30 days.
The order Recency rating of the customer will be reduced from 4 to 3 (purchased within last 91 to 180 days) thus indicating that one of your highly valuable customers might not be interested. Thus, signaling you to discuss out the issues with your customer and take up all the measures to get them back through calls, sending a personalized email or a coupon code.
You can easily set up those rules to automate the task and keep your highly converted customers engaged at a higher level using HubSpot Workflows. Thus, driving a lot of traffic on your eCommerce website.
An eye on its working: