Apply an RFM system alongside your email marketing for better results
Posted: Wed Dec 04, 2024 3:37 am
We've already talked about the importance of metrics in email marketing ; however, it's important to scale those impacts of the email campaign along with the development of the brand, business and customers.
For this, there is a good proposal which is to use RFM Analysis (which stands for Recency, Frequency and Amount). This is a technique that allows you to quantitatively determine which clients generate the greatest volume of business for you, or in other words, those who invest the most in your company.
But it is not just about money, but about a series of factors that surround the customer's purchase: the most recent thing the customer has bought (R), the frequency guinea business email list with which he makes his purchases (F) and the total amount (M) that he has generated through these, in monetary terms. In itself, the RFM analysis is based on the Pareto or 80-20 analysis, a technique that consists of separating the "vital few" from the "trivial many".
When this analysis is used, each customer is assigned a rank or category from 1 to 5, to rate them on the factors already mentioned. This allows us to track which are the best customers within a given period; for example, if a customer has a rank of 5-5-5, it means that they are an ideal customer, since they buy frequently, do not spend much time between one purchase and another, and generate a significant amount of money.
In addition to all this, the presence of digital marketing techniques and the metrics obtained from them, allow us to add extra value to this RFM list ; because now, in addition to knowing how much they contribute to us at a business level, it is important that we evaluate their presence and social and relational interaction with us.
For this reason, we could do a mix between RFM analysis and link, in the same set of columns and cells, the metrics that we obtain from email marketing, such as the opening rate of our emails, the click-through-rate within them or, failing that, the bounce rate of our campaigns with the client.
For this, there is a good proposal which is to use RFM Analysis (which stands for Recency, Frequency and Amount). This is a technique that allows you to quantitatively determine which clients generate the greatest volume of business for you, or in other words, those who invest the most in your company.
But it is not just about money, but about a series of factors that surround the customer's purchase: the most recent thing the customer has bought (R), the frequency guinea business email list with which he makes his purchases (F) and the total amount (M) that he has generated through these, in monetary terms. In itself, the RFM analysis is based on the Pareto or 80-20 analysis, a technique that consists of separating the "vital few" from the "trivial many".
When this analysis is used, each customer is assigned a rank or category from 1 to 5, to rate them on the factors already mentioned. This allows us to track which are the best customers within a given period; for example, if a customer has a rank of 5-5-5, it means that they are an ideal customer, since they buy frequently, do not spend much time between one purchase and another, and generate a significant amount of money.
In addition to all this, the presence of digital marketing techniques and the metrics obtained from them, allow us to add extra value to this RFM list ; because now, in addition to knowing how much they contribute to us at a business level, it is important that we evaluate their presence and social and relational interaction with us.
For this reason, we could do a mix between RFM analysis and link, in the same set of columns and cells, the metrics that we obtain from email marketing, such as the opening rate of our emails, the click-through-rate within them or, failing that, the bounce rate of our campaigns with the client.