Instead of reaching out to 100% of your audience, identify and target only specific customer groups that will turn out to be most profitable for your business. Trigger messaging journey once a user enters a specific segment.

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1. Create an RFM calculation

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Recency (R) as days since the last purchase: How many days ago was their last purchase? Deduct the most recent purchase date from today to calculate the recency value. 

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Frequency (F) as a total number of transactions: How many times has the customer purchased from our store?

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Monetary (M) as total money spent: How much $$ (or whatever is your currency of calculation) has this customer spent? Simply total up the money from all transactions to get the M value.

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2. Create segments using the defined metrics

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Use the table above to create customer segments based on the RFM metric. For example, if a user with the highest RFM score is around 30-40 (depending on your values), you can map this score Champions segment (4-5 on a scale of 5). Apply the same concept to create the remaining segments.

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3. Create engagement loops for different customer segments

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Create journeys using multiple RFM segments - each segment should have a different engagement flow. 

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For example, “Champions” should receive messages rewarding for their loyalty, while “Lost” customers should be incentivized to return by offering a promotion.