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Introduction to Gameball’s RFM Segments

Understand the concept of RFM analysis and segmentation and how to use them to reach your business goals.

Rana ElGharib avatar
Written by Rana ElGharib
Updated this week

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Shopify

Start, Pro, & Guru

Salla

Pro, & Guru

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Growth & Enterprise


Segmenting customers is the first step toward making your marketing efforts more effective. By targeting customers based on similar behaviors and spending habits, you can create personalized campaigns and build stronger customer loyalty. In this article, learn how Gameball automatically segments customers using the RFM model.

RFM customer segmentation focuses on purchasing behavior rather than demographic or psychographic data. This model allows you to identify high-value customers and tailor your retention and engagement strategies accordingly.


What Is RFM?

RFM stands for Recency, Frequency, and Monetary Value. It is a data-driven customer segmentation technique based on:

  • Recency: When the customer last made a purchase from your store

  • Frequency: How often the customer makes purchases

  • Monetary Value: The amount of money the customer spends

Businesses that use RFM analysis gain a clearer picture of their customers’ lifetime value. This helps in deciding which customers to retain and how to allocate marketing resources efficiently.


What Is an RFM Analysis?

To conduct an RFM analysis, you assign scores to customers based on their recency, frequency, and monetary value. These scores, when combined, categorize customers into actionable segments.

With Gameball, there’s no need to manually assign scores or build these segments yourself. Gameball performs the RFM analysis for you and automatically creates seven pre-defined customer segments.


Gameball’s RFM Segments

The following segments are created automatically by Gameball based on RFM data:

  • Best Buyers: Customers with the highest purchase frequency, most recent activity, and highest spend.

  • Loyal: Customers with high recency and monetary value who purchase frequently.

  • New Customers: Customers who have just joined your store.

  • Promising: Customers who are moderately active, make occasional purchases, and respond to promotions.

  • Can't Lose: Customers who previously made large purchases but haven't returned in a long time.

  • About to Lose: Inactive customers with low frequency and low spend.

  • Lost: Customers with the lowest scores in recency, frequency, and monetary value.

Use these segments to craft personalized campaigns that suit each customer group’s behavior and needs. RFM segmentation is a powerful tool to guide your customer acquisition and retention strategies. Learn more.


Where to Find RFM Segments on Gameball

  1. Go to the Gameball dashboard.

  2. From the left-hand bar, click Customers, then RFM Segments.


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