• HOW CAN CUSTOMER SEGMENTATION HELP ME TO BETTER KNOW MY CUSTOMERS?

VALUE PROPOSITION

Knowing as much as you can about your customers is key when considering marketing efforts and where to place precious time and resources. Pinpointing whether high ticket value customers are actually of most value to your business, or whether your most frequent customers respond to your marketing campaigns can help you achieve the results you’re looking for but it isn’t always easy to do.

Heartland Analytics has simplified the process. With the RFM (Recency, Frequency, Monetary) Dashboard you’ll find customer segmentation that allows you to increase retention, responsiveness, conversion rates, and revenue.

MERCHANT EXAMPLE

Let’s go through an example for using your RFM Dashboard to determine whether a recent campaign was effective:

Last week, Ashley sent out an email campaign encouraging customers to come in and try a new seasonal menu. Now, she wants to see if the campaign was effective at lowering the average amount of days between customer visits. All she has to do is view the Advanced Analytics section of her RFM Dashboard by following these steps:

MERCHANT EXAMPLE

  1. Log in to Heartland Analytics.

  2. Select the RFM tab.

  3. Scroll down and click View Advanced Statistics.

  4. Look at the chart labeled RFM Tier Averages Over Time and find the yellow dot that corresponds to the sent campaign.

  5. Assess the success of the campaign based on the colored lines that show you how each tier has performed before and after that campaign.

BEST PRACTICES

   

Here are just a few things that Ashley should keep in mind when using the RFM Dashboard to make marketing decisions: 

Define markers for success before sending a campaign
Ashley decides that the goal of this campaign is to lower the Recency (average amount of days between customer visits) of customer tiers two, three, and four by two days. She keeps this goal in mind as she writes creative copy for the campaign.

 

Don’t over target to a specific tier
Once Ashley finds what really motivates tier two, it may be tempting to specifically target them in every marketing effort. She should resist this temptation so as not to overwhelm this group. Too much of the same content can cause customers to disengage.

 

Visit your dashboard often
As Ashley reviews her efforts, tier statistics are likely to change. That’s a good thing! It means she now has actionable data that tells her which efforts are working and which may need to be reassessed.

DO MORE WITH EMAIL MARKETING

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Campaign Creation

Create an email campaign, promoting new items, special deals or events with prepared templates
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Sign-Up Widget

Gather email addresses with a simple widget added to the merchant website
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Contact Importer

Create mailing lists from existing contacts using a simple tool
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Dashboard

Use a campaign dashboard to easily see how the campaign is performing backed by card processing analytics