Data-driven Customer Segmentation to Drive Your Business to Success

Leverage data science technologies to segment your customers and make the best marketing decisions for individual customer segments.

Customer segmentation

Using data science technologies, your company can compute mass amounts of historical transactional data to segment all your customers into different groups with a method called RFM segmentation.

What are the customer segmentation challenges for marketing managers?

Lack of access to different sources of data
Trial and error in customer segmentation
The time consuming nature of identifying different market segments

How can Markight RFM Segmentation Help?

RFM stands for Recency, Frequency and Monetary value of purchases made by individual customers, and is known to be one of the best data driven methods for customer segmentation.

Markight offers an automated RFM segmentation tool that provides marketers easy access to data related of each customer segment.Marketers are just one click away from access to the data related to their loyal customers, comparing these to new customers or those who are at-risk of churning as well as others. In addition, marketers can easily track sales performance across each of their customer segments and recognize how it has improved or declined as a result of different marketing tactics in each segment.

RFM Transition

RFM Transition

Any changes in customer behavior is important for business owners and marketing managers. They want to know which habits and behaviors have changed in which customer segments in order to quickly adapt, and make smarter decisions accordingly. Markight displays any changes in customer behavior across various segments in a visualized platform with the help of easily discernible graphs and visuals. You can select the desired time period to display relevant statistics to help you make smarter decisions, quickly and effectively. In a world that is ever-changing , this tool is crucial in helping your business make data-driven decisions on par with your ever-evolving market.

Customer Retention

New Customer Retention (Cohort Analysis)

This feature analyzes customer behavior across various segments in a specific time period ranging from days to seasons or even years. With the help of this feature, you can understand the time period or the particular advertising or marketing campaign during which you were able to retain new customers with a lower drop-out rate when compared to other new customers. Additionally, by using this tool, you can view your repeat customer rate and provide them with effective offers. This feature paves the way for your business to retain its customers and can effectively save it. You can easily observe the average time it takes for new customers to drop out and take effective actions to retain them before they say goodbye.

Customer Basket Share

Customer Basket Share

Attracting a new customer is costly. So we need to know how profitable it is for your business to attract them. This feature allows you to measure the share of new customers in your total sales and check the percentage of your monthly income that has been generated by new customers in the past year. This is one of the most useful Markight reports because it allows you to understand your new customers based on their purchasing amount and their contribution to your overall business. By analyzing these factors and understanding their behavior, you can then target them with specific strategies and offers.

Customer Liftetime Value

Customer Lifetime Value

How much income can you expect from each segment of your customers? This Markight feature helps you identify your most valuable customers and analyze the average contribution of each customer segment to your income over their lifetime. This is crucial in prioritizing your marketing efforts as well as understanding potential factors that may have led to this outcome. On Markight, you can calculate five important KPIs with a click:

  • Average Order Value (AOV)
  • Purchase Frequency
  • Lifespan
  • Customer Lifetime Period
  • Customer Lifetime Value

​​​​​​​Customer Clustering

RFM segmentation may not be suitable for all ecommerce businesses because each business operates differently and values different criteria when it comes to customer segmentation and analysis. For instance in FMCG businesses, returned product rates are an important factor in customer segmentation. It is therefore essential for some businesses to take advantage of clustering. Clustering is the best option if you want to segment and analyze your customers based on your specific business needs and criteria. Clustering further allows you to observe which indicators are the most important in each customer segment. With the help of customer clustering you can segment your customers based on your needs and take effective actions that target your specific ecommerce business goals and challenges.

Are you ready to make your business data-driven?