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From the Little Stream Software blog

Finding your best customers and keeping them is a simple, yet powerful retention strategy.

A really useful outcome of using RFM analysis is that it can tell you exactly who they are. With a 1 to 5 scoring model, like what my Shopify app uses, customers scored with 555 are the top 1% of your customer base.

They've ordered recently so they are still active. They've ordered the most times. They've spent the most in their customer lifetime.

I wouldn't be surprised to see these customers accounting for a large portion of your sales overall.

These are the 1% customers you want to do whatever you can to keep.

Eric Davis