Customer lifecycle segmentation

Employ RFM analysis to segment customers based on their purchase behavior and target them accordingly.

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Customer lifecycle segmentation
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Introduction to Executive Dashboard:

The Executive Dashboard SuccessBLOC allows you to:
What's Included?
Goals & KPIs

About the use case

Lifecycle segmentation allows you to automatically group your customers based on Recency, Frequency, and Monetary values. Based on the dynamic RFM segments, you can create website experiences and personalized multi-step journeys to maximize each customer's lifecycle value, depending on their real-time lifecycle stage.

Benefits

  • Automated segmentation. Automatically group customers based on their purchase behavior using RFM models.
  • Real-time updates. Customer segments are updated in real-time with each new interaction or purchase.
  • Enhanced targeting. Create highly targeted marketing campaigns tailored to each customer segment.
  • Increased retention: Improve customer retention by identifying and re-engaging customers who are at risk of churning.
  • Maximized lifetime value: Focus marketing efforts on high-value customers to maximize their lifetime value.

How It Works

Step 1. Define and create events for RFM analysis

1. Create conversion events:
  • Identify the key conversion events you want to track, such as "Purchase."
  • Ensure these events are being tracked accurately in your data layer.

2. Set up event conditions:
  • Configure the event conditions to ensure accurate tracking. For example:
    • Event name: "Purchase"
    • Attributes: Total price, purchase date, etc.

Step 2. Build the RFM model

1. Go to the RFM section:
  • Navigate to the RFM section in Intempt and select "Create model."

2. Select recency and frequency events:
  • Choose an event that represents your conversion. This will determine how the RFM model is calculated. The same flow applies to both recency and frequency models.

3. Select the monetary event and its conversion value:
  • Choose the conversion event (e.g., "Purchase") and the value representing the conversion's monetary expression (e.g., "Total price").

4. Define the model's targeting:
  • Exclude users you don't want to include in the model to improve accuracy. For example, exclude anonymous users or users who haven't signed up.

5. Define the model's timeframe:
  • Set a rolling timeframe for calculating the activity model. A recommended timeframe is 30 to 90 days to avoid skewed results from long inactive users.

Step 3. Create segments based on RFM scores

1. Create a new segment:
  • Navigate to the Segments section in Intempt and create a new segment.

2. Define segment conditions:
  • Use the attribute generated by the RFM model to define the segment. For example:
    • Segment: "Champions"
    • Condition: Attribute segment equals Champions

3. Examples of configuring segments:
  • Champions: Customers that bought recently, ordered often, and spent the most.
  • Regulars: Orders regularly.
  • Promising: Customers who regularly buy for a small amount or have recently bought for a large amount.
  • Needs Attention: Customers who have bought many times for large sums but no longer now.
  • At Risk: Customers who made smaller and infrequent purchases before but haven't purchased anything long.

4. Combine with other conditions:
  • Refine these segments by adding additional conditions. For example:
    • High-value Champions: Attribute segment equals Champions and Total spending > $500
    • New Promising Customers: Attribute segment equals Promising and Sign-up date < 30 days

Step 4. Set up personalized journeys

1. Create a new journey:
  • Navigate to the Journeys section in Intempt and create a new journey.

2. Define the journey trigger:
  • Set the trigger for the journey based on the segment created in Step 3. For example:
    • Trigger: When a user enters the "Champions" segment.

3. Add actions to the journey:
  • Example nurture flow for Champions:
  • Step 1: Welcome Email  
    • Action: Send a personalized email featuring special offers or new products.
    • Example:Subject: You're First in Line: Exclusive Preview Just for Our Top Shoppers!
    • Content: Hi [Name],As one of our most valued customers, your support and loyalty haven't gone unnoticed. To show our appreciation, we're giving you an exclusive sneak peek at our upcoming collection before anyone else. This is your chance to get your hands on our latest styles before they're released to the public.Happy shopping, and thank you for being a true Champion of Thread.ly.[Exclusive Preview Link]Best,The Thread.ly Team

  • Step 2: VIP Rewards Email 
    • Action: Send a follow-up email offering VIP rewards.
    • Example: Subject: VIP Rewards Await You, [Name]!
    • Content: Dear [Name],Because you're such an integral part of our Thread.ly family, we're thrilled to offer you VIP rewards, including free expedited shipping, early access to limited editions, and more. These perks are just our way of saying a huge thank you for your continued support.Explore Your VIP Benefits: [Link]Thank you for being amazing,The Thread.ly Team

  • Step 3: Personalized Recommendations
    • Action: Send an email with personalized product recommendations.
    • Example: Subject: Curated Just for You: Styles We Know You'll Love
    • Content: Hello [Name],Based on your impeccable taste and previous purchases, we've put together a selection of styles that we think you'll absolutely love. Take a look and discover pieces that feel personally picked just for you.[Personalized Selection Link]We hope you find something you adore,The Thread.ly Team

  • Step 4: Share Your Story
    • Action: Encourage user-generated content.
    • Example: Subject: We're All Ears: Share Your Thread.ly Journey!
    • Content: Hey [Name],Your journey with Thread.ly means the world to us, and we'd love to hear more about it. Share your favorite purchases, style tips, or how Thread.ly has been a part of your fashion evolution, and get a special discount on your next purchase as a thank you.[Share Your Story Link]Thank you for being a part of our story,The Thread.ly Team

4. Add decision points:
  • Incorporate decision points to refine the journey further. For example:
    • Decision Point: If the user clicks on the welcome email link, proceed to send the VIP rewards email.
    • Decision point: If the user does not engage with the welcome email, send a reminder email after a few days.

5. Activate the journey:
  • Review the journey steps and activate it to start the automation process.
6. Multiple journeys for different segments:
  • For each RFM segment, create a separate journey. For example:
    • Champions RFM campaign
    • Regulars RFM campaign
    • Promising RFM campaign
    • Needs attention RFM campaign
    • At risk RFM campaign

Step 5. Deploy personalizations

1. Create a new personalization campaign:
  • Navigate to the Personalizations section in Intempt and create a new personalization.

2. Create multiple experiences within the campaign:
  • For each RFM segment, create a separate experience within the personalization campaign.
3. Set up the personalization content for each experience:
  • Experience for Champions:  
    • Homepage Banner: Display a banner with exclusive early access to new collections and VIP offers
    • Sticky Top Bar: "Welcome back, [Name]! Enjoy VIP perks today!"
    • Recommended Product Section: Recommend high-end products and new arrivals.
    • Offer section: "Exclusive VIP Offer: 20% off your next purchase!"
  • Experience for Regulars:
    • Homepage Banner: Show a banner highlighting a loyalty program with points and rewards.
    • Sticky Top Bar: "Earn more points with every purchase!"
    • Recommended Product Section: Suggest popular products and items they frequently purchase.
    • Offer section: "Earn double points on all purchases this month!"
  • Experience for Promising:
    • Homepage Banner: Present a banner offering a special welcome discount on their next purchase.
    • Sticky Top Bar: "Special welcome offer just for you!"
    • Recommended Product Section: Highlight best-sellers and items similar to their recent purchases.
    • Offer section: "Welcome offer: Save 15% on your next purchase!"
  • Experience for Needs Attention:
    • Homepage Banner: Feature a banner with personalized product recommendations and a special re-engagement discount.
    • Sticky Top Bar: "We've missed you! Check out these exclusive deals."
    • Recommended Product Section: Show products they have previously viewed or purchased.
    • Offer section: "Special re-engagement discount: 10% off select items."
  • Experience for At Risk:
    • Homepage Banner: Display a banner with a "We Miss You" message and a substantial discount to encourage return shopping
    • Sticky Top Bar: "Come back and save 20% on your next purchase!"
    • Recommended Product Section: Display discounted items and clearance products.
    • Offer section: "We want you back! Save 25% on your next purchase!"

4. Set the targeting conditions for each experience:
  • Define rules to ensure that personalized content is shown to the right users. For example:  
    • Experience for Champions: Target users where the attribute segment equals Champions
    • Experience for Regulars: Target users where the attribute segment equals Regulars"
    • Experience for Promising: Target users where the attribute segment equals Promising
    • Experience for Needs Attention: Target users where the attribute segment equals Needs Attention
    • Experience for At Risk: Target users where the attribute segment equals At Risk

5. Activate the personalization campaign:
  • Review the personalization setup and activate the campaign to start delivering personalized experiences

Step 6. Monitor and optimize

1. Track performance with journey analytics:
  • Navigate to the Journey Analytics section in Intempt to analyze the performance of your journeys.
  • Key metrics to monitor:
    • Triggered journey: Number of users who have triggered the journey.
    • Converted: Number of users who completed the conversion event set for the journey.
    • Conversion rate: Percentage of users who converted out of those who triggered the journey.
    • Days to convert (Avg): Average number of days it took for users to convert after triggering the journey.
  • Use this metrics to evaluate initial engagement, optimize timing, and identify areas for improvement. For example, if the conversion rate is lower than expected, consider adjusting your emails' and SMS messages' content or timing.

2. Track performance with personalization analytics:

  • Navigate to the Personalization analytics section in Intempt to analyze the performance of your personalization campaigns.
  • Key metrics to monitor:
    • Control group: Represents the group of subjects that are set aside and do not receive the modified content.
    • Unique views: Measures the number of customers that viewed the personalized experience.
    • Conversion: Specifies the number of users that triggered the conversion metric.
    • Conversion %: Percentage of users across the audience that triggered the conversion metric.
    • Conversion value: Displayed if the conversion event includes the value of an event property.
    • Lift: Shows the improvement in the conversion rate percentage for the variants compared to the control group.
  • Use this metrics to assess the effectiveness of your personalized content. For instance, if the lift is significant, it indicates that the personalized content is performing well compared to the control group. Conversely, if the conversion rate is low, you may need to refine your personalization strategy or content.
Whenever you're ready, your can sign up for The Growth OS to try this use case.
In addition, there are 3 other ways Intempt can help you:
1. The Intempt Startup Program: This program accelerates startups in eCommerce, SaaS, and Apps. It teaches founder-led and small marketing teams how to acquire, engage, and retain customers. Participants receive a $5000 credit for growth at no cost. Plus, if you refer your accelerator to us and they join our Affiliate Program, we'll double your credits.
2. The Intempt Affiliate Program: Accelerators and incubators can offer the Intempt Startup Program to their communities. Your startups will benefit from our program, and you'll receive a 20% revenue share.
3. The Intempt Agency Program: If you're a CRO agency, consider joining our Agency Program. You'll learn cutting-edge strategies for acquiring, retaining, and monetizing accounts (for SaaS companies) and users (for eCommerce & SaaS companies), implementing Intempt on behalf of eCommerce, SaaS, and Apps companies.

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Tags

Sales

Marketing

Engagement

New sales

Retain

Made by

Intempt

Product

AI

Lifecycle stage

Retain

Solution

Marketing

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