A commonly used tool in the industry is RFM analysis
Posted: Tue Jan 07, 2025 6:33 am
"Dianhua Happiness Organization" is a brand that has actually used LINE official accounts to integrate marketing, sales and customer service very well. Dianhua's most well-known service is to provide customers with wedding banquet venues. To help customers accomplish such a major life event, of course, it needs to be based on good customer relationship management and in-depth mutual communication. Dianhua implements the concept of LINE CRM and uses lightweight digital tools to record every interaction between customer service and sales staff and customers, and share them with each other through the backend, so that consumers can be carefully considered at every step. Take care and eventually become a loyal customer.
Recommended reading: Dianhua | LINE becomes the biggest booster for offline performance! Cooperate with marketing and business to establish the most complete customer profile and create "fast and accurate" interactions
23. CRM key indicators: customer lifetime value (LTV)
CRM is important because different customers have different “lifetime values” they can provide to the brand. The Customer Lifetime Value (LTV) formula can be used to calculate the lifetime value italy whatsapp phone number that a customer can provide to the brand. The higher the LTV of a customer, the more worthy it is for the brand to invest resources in maintaining the relationship. Brands can also try to increase customer lifetime value through three aspects: "customer unit price", "purchase frequency" and "customer longevity" .
24. CRM Tools: RFM Analysis
As can be seen from the above paragraph, the key to CRM is to "segment" customers so that we can manage different groups and understand the customer lifetime value of different consumers. Here comes the key point: What indicators should brands use to help segment customers into groups?
. R, F and M respectively refer to:
- Recency: last consumption time
- Frequency: consumption frequency
- Monetary: single consumption amount
Based on the high and low of R, F and M, we can find out the "sleeping customers", "active customers", "frequent customers", "rare customers", "regular customers" and "golden customers" among consumers, and distinguish them respectively. Use different resources and communication modes.
Recommended reading: Dianhua | LINE becomes the biggest booster for offline performance! Cooperate with marketing and business to establish the most complete customer profile and create "fast and accurate" interactions
23. CRM key indicators: customer lifetime value (LTV)
CRM is important because different customers have different “lifetime values” they can provide to the brand. The Customer Lifetime Value (LTV) formula can be used to calculate the lifetime value italy whatsapp phone number that a customer can provide to the brand. The higher the LTV of a customer, the more worthy it is for the brand to invest resources in maintaining the relationship. Brands can also try to increase customer lifetime value through three aspects: "customer unit price", "purchase frequency" and "customer longevity" .
24. CRM Tools: RFM Analysis
As can be seen from the above paragraph, the key to CRM is to "segment" customers so that we can manage different groups and understand the customer lifetime value of different consumers. Here comes the key point: What indicators should brands use to help segment customers into groups?
. R, F and M respectively refer to:
- Recency: last consumption time
- Frequency: consumption frequency
- Monetary: single consumption amount
Based on the high and low of R, F and M, we can find out the "sleeping customers", "active customers", "frequent customers", "rare customers", "regular customers" and "golden customers" among consumers, and distinguish them respectively. Use different resources and communication modes.