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From the Little Stream Software blog

Sorting and grouping your customer data is nice, but the real power from Repeat Customer Insights comes from the insights it gives you.

Ideally it could read your customers' minds and tell you exact how to market to them.

But until there's an API for that, you can use the actual behavior customers have to get ideas about how to reach them.

That's exactly what RFM does but it can be complex to turn the scores like 312 or 532 into something useful.

That's where the Automatic Segments come in.

The Automatic Segments builds on top of RFM to convert the 125 segments down to a more manageable 30. They also combine similar segments, like how there are five different scores that can determine a Loyal customer.

By combining similar segments from RFM, you have an easier time managing the segments. That's one of the improvements Repeat Customer Insights makes to RFM so RFM is easier to use for the typical Shopify store.

As part of my desire help you learn about customer analysis and segmenting, every Automatic Segment includes three components:

• Description and advice about the segment
• Links to the other Automatic Segments
• List of customers who belong to the segment

The last two are pretty self-explanatory, but the description and advice section is where you want to spend your time.

That section uses describes in words what this segment represents. Are these loyal customers? Have they defected? Do they place large orders?

Included is advice about how to approach and target them, from a campaign perspective. How do you reach these customers? Is there anything to keep in mind about them?

For example, if the segment is populated by new customers you wouldn't send them a hard offer to buy again with a deep discount. They just bought, you're going to upset them by saying they could have paid less.

Or if the segment has customers who spend less than your usual amounts, you can deploy all of the AOV increasing tactics you've seen online. But you wouldn't use those same tactics on the segment that already spends a lot per order.

By having your customers automatically segmented and then getting advice on them, you can start building specific campaigns to target each of those segments. That's personalized marketing that you can understand and actually use.

You can see the [examples of the segmenting advice][example] or install Repeat Customer Insights to get your own customers analyzed and segmented.

Eric Davis