RFM Segmentation is probably one of the best analytical tools for Marketing. It is made possible with Big Data and Data Analysis to make sure you are not wasting a penny of your marketing budget and getting the most out of it. It helps you spend your marketing budget based on facts and figures from past customer behaviors and shopping trends. So, you can spend your marketing budget effectively where it counts to grow your business and retain loyal customers. 

Visualization through Business Intelligence and Machine Learning makes it easier for you to understand customer shopping behaviors and derive a more effective and cost-efficient marketing strategy. A creative marketing strategy not only increases the sales revenue but also improves the overall customer experience exceptionally giving them product satisfaction and a feeling of being understood by the manufacturer.

The most common examples for targeting the customers through RFM Segmentation would be:

• Return Offers: While working your RFM Segmentation through Data Analysis, you might notice a group of customers that have not bought anything for a longer period and you certainly want to retain those customers by sending them an offer that makes them feel special. This can be made possible by sending them a customized email with a Return Offer. It will not only increase your chances to have those sales but will also improve the overall customer shopping experience to increase revenues in the future.
• Frequent Buyer Discounts: There must be a group segment classified in your Business Analytics that you notice have more purchases than others and you would want to make them feel special, understood and appreciated to keep their business. You can offer them frequent buyers discounts to appreciate their interests and make sure they stay connected and improve their overall customer experience with your products and brand.
•  Amount Discounts: RFM Segmentation makes it possible for you to track customer shopping trends effectively in an organized manner and you can classify the customers who have considerably larger purchases than others over past intervals of time selected. More sales from the same customers signify their trust in your brand and you can keep it consistent with offering them discounts based on their shopping preferences. Amount discounts can also be customized according to the category of products a consumer is interested in and you can offer them a percentage off the whole bill if they purchase up to the set amount; that can be determined according to their past shopping habits and budget they have spent towards those products.

RFM segmentation and targeting your customers effectively through establishing a marketing strategy based on their past shopping trends and habits has proven to be highly useful than those traditional unanimous marketing strategies. Data Analysis through Machine Learning and your past Business Analytics combined can get you a Visualization of the facts and figures you need to consider while working with the Marketing Strategy for your business to grow.

 RFM segmentation gives you a chance to implement Data Science and RFM techniques for your business. It also makes each customer feel special that you care for them. This will ensure your spending on marketing is minimized and you are getting the most out of the marketing budget with more revenue earned through sales. To know more about this topic, feel free to contact NextBee.