Not all your customers are equal
It's a truth every shopkeeper knows instinctively: some customers come every week and spend a lot, others only dropped in once six months ago. Yet most businesses treat everyone the same way, for lack of tools to tell them apart.
That's exactly the problem RFM segmentation solves. Behind that slightly technical name lies a simple, powerful method for understanding your clientele and acting intelligently. Here's how it works, explained without jargon.
What is RFM?
RFM is the acronym for three criteria that describe a customer's behaviour:
By combining these three pieces of information, you get a far sharper picture of each customer than a simple stamp total. And above all, you can classify your customers into groups and speak to them differently.
The main RFM customer profiles
Here are the most useful profiles to know for a local business:
The idea isn't to overcomplicate things, but to understand that a champion and an at-risk customer don't need the same message.
Why it's the ultimate anti-churn weapon
"Churn" is attrition: the customers who slip away and never come back. The problem is that it's silent. A customer doesn't warn you they're about to stop coming. They drift away, then disappear. And by the time you notice their absence, it's often too late.
RFM segmentation makes that churn visible. By tracking recency and frequency, you immediately spot the "at-risk" customer: the one who came every week and hasn't been seen in a month. That's precisely the customer to reach out to now, while they still remember you.
Acting on an at-risk customer costs far less and pays off far more than chasing a new customer through advertising.
Putting it into action: what to do for each profile
Your champions
These are your best ambassadors. Thank them, make them feel they matter. A personalised touch, an exclusive reward, or simply a Google review request (they're the most likely to leave an excellent one).
Your loyal customers
Solid but unspectacular. The goal is to move them up a notch: introduce them to a premium product, offer something that raises the average basket.
Your at-risk customers
Top priority. A well-crafted push notification can be enough:
The point is to revive the habit before it disappears completely.
Your dormant customers
They're almost lost, but a striking return offer can sometimes bring them back. If it doesn't work, at least you're not wasting energy on them.
Your new customers
The moment is crucial: turning a first visit into a habit. A welcome notification, a small perk for the second visit, and you're set.
The trap: complexity
RFM segmentation can be intimidating because you picture complicated Excel spreadsheets and endless calculations. This is the right moment to reassure you: you have nothing to calculate yourself.
With a digital loyalty card like Goodly, every visit is recorded automatically. The RFM analytics are built in: you see directly which customers are your champions, which are at risk, and which are dormant. No spreadsheet, no formula, just a clear, actionable view.
A concrete example
Imagine a café. Thanks to RFM analytics, the manager sees that:
Three customers, three different actions, all relevant. That's the power of RFM: the right message, to the right person, at the right time.
How much does it cost?
RFM analytics are included in Goodly's Pro plan (29€/month), along with unlimited customers and push notifications. Enough to turn your data into customers who come back.
Ready to know your customers?
You don't need to be a data analyst to reduce your churn. A digital loyalty card does the work for you and shows you, in plain terms, who to pamper and who to win back.
Create your free loyalty card →