Use RFM segmentation in ecommerce
1. Run an RFM analysis using your CRM's built-in functionality or a third-party app or plugin.
Many CRM platforms have a standard RFM analysis tool available. If you don’t have access to one, check out third party apps and plugins like Barilliance, Clevertap, Optimove, or Growmatik for WooCommerce.
2. If you are doing an RFM analysis manually, export your ecommerce platform's customer data. Export each field as a separate column: Customer name, First order date, Last order date, Total number of orders, and Total customer sales.
3. Establish an internal RFM score for recency, frequency, and monetary value, using a scale of 1-5 or 1-10.
A high number indicates recent activity, repeat visits, and lots of revenue.