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From the Little Stream Software blog

As part of the Automatic Segments in Repeat Customer Insights, I created a VIP segment. That segment is automatically updated to show who the current VIPs are.

I define VIP customers in the app as:

the best of the best customers

  • they spent the most with the store
  • they buy the most frequently
  • they were recently buying

While loyal customers might have one of two of those criteria, VIP customers have all three and are at the top of the rankings. In RFM terms, VIPs score a perfect 555 for all three components. Loyal customers have 4s or 5s across all three.

An interesting thing about using RFM to define the VIP customers is that it automatically adjusts. If a customer starts spending less money or buying infrequently, RFM will automatically adjust them down to another segment.

This means you can really spoil your VIPs. Treat them like true VIPs and send them perk after perk.

Being the most valuable customers, it's worth it to your store.

Eric Davis

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