The guest base accumulated over the years allows us to analyze the needs of the target audience and develop personalized offers based on them. This is an important asset for any business.
Retaining your guests and encouraging them to make repeat purchases breaks the vicious circle where you have to offer the same people dishes over and over again and guess what they want instead of macedonia mobile phone number list building a relationship with them once and for life.
If you do not maintain a guest database, you are forced to invest money in advertising again and again. But you could warm up guests with almost no investment. To do this, it is enough to be able to correctly segment the database and develop offers for each segment. For example, using the RFM method. Its main advantages are simplicity and clarity of segmentation.
Advantages of RFM Analysis
Targeting specific emails to specific customer groups results in much higher advertising conversion rates than the same non-personalized advertising.
At the beginning of each advertising campaign, you need to understand which segment of guests this advertisement will be shown to. After that, you need to create the content that will resonate most strongly with the selected audience. And only then throw all your efforts into launching this campaign. Unfortunately, most of us do exactly the opposite .
RFM analysis simplifies the selection of a target audience for a campaign – it takes into account the recency, frequency and amount of purchases for each individual guest and forms guest segments ready for campaigns based on them. RFM analysis is extremely useful in understanding the response of your guests, as well as in building a marketing strategy based on guest segmentation.
RFM analysis will gladly answer your questions such as:
Who are my best guests?
Which of my guests is on the verge of losing?
Who can potentially be transferred to a higher-paying segment?
Who are my lost guests that need special attention?
Which guests should be kept at all costs?
Which of my guests are the most loyal to my brand?
Which guest segment responds best to current advertising campaigns?