The number of loyalty members is constantly increasing. As loyalty is a marketing tool that offers personalized services, companies have to somehow separate and categorize differently members in order to identify the different needs of each category and approach them successfully. But how can we categorize them and separate them? There is a well-known method called the RFM analysis, according to which loyalty members are separated by Recency, Frequency and Monetary value. RFM analysis is an analysis on shopper purchasing behavior, demographics and profiles. This type of analysis provides valuable customer insights to the company. The fundamental concept of this segmentation is that customers who belong in the same segment have significantly similar buying behavior, and accordingly different with customers from other segments.
We, then, separate the results of the RFM analysis in 6 different categories: Star member, Gold member, Silver member, Bronze member, Yellow member, White member. QIVOS offers a complete pack of services around customer insights, including designing customer engagement campaigns, identifying potential target audience, optimizing promotions etc. using the well-known RFM Analysis, find out more here.
Now, using QIVOS’s data from 2015 we will see how each of these different categories of loyalty customers affect company’s revenue and what is the scale of spending for each category.
As we can see, the two key players are the gold & silver members, as they have the biggest share and in total spent the highest amount. Now the challenge is to find the perfect method to approach each category separately, the so called, Campaign Management.
QIVOS (former CLOUDBIZ) delivers a full campaign management service; leveraging insights to unlock customers’ behavior and engagement to the brand, always in co-operation with the company’s marketing plan. Click here for more details.
