In edrone we have 10 segments in RFM Analysis. Below I will describe all groups so you can better understand them and hence prepare better marketing activities. No more burning money on not responsive groups.
CHAMPIONS
Your best customers, bought recently, a lot and are heavy spenders. Reward them, they can be early adopters of your products and are best to promote your brand.
LOYAL CUSTOMERS
They are your biggest fans, they are buying very often, not spending large amount of money but you can count on them.
POTENTIAL LOYALISTS
Their buying power is increasing, they are spending above average amount of money and the number of products they bought is also above average.
NEW CUSTOMERS
Those are your newest customers, they have bought one product from your store most recently. Engage them and start building relationship with them by providing onboarding support and special offers to direct them back to your store.
PROMISING
Recent customers, their buying frequency is increasing. They need to be nurtured, engage them frequently with new products.
NEED ATTENTION
Those customers are slipping away, haven't bought anything in over 3 weeks. They will be lost soon, re-engage them.
AT RISK
Above average buyers with high amount of products bought from your store. They are slipping away, re-engage them.
CAN'T LOSE THEM
You cannot lose them, once they were your champions, haven't bought anything in over a month. Send them personal reactivation campaign, inform them about your new products, show how you have changed and bring them value so they can revisit you.
HIBERNATING
They are going to sleep soon, average and high spenders but haven't interact with you for over 3 weeks. Prepare a medium promotion for them, use all channels possible, SMS, Facebook and email.
LOST
They haven't bought anything from your store in over a month, below average spenders. Send them promotion and try to reactive. Direct them to your store, check if they are still interested in your products.