In This Article:
- Video Walkthrough
- What is RFM Analysis?
- Customer Analytics By Segments Card
- Key Performance Indicators Card
- Orders Card
- Customer Check-Ins Card
Overview
Understanding how your customers behave and how often they return is crucial for growing your business. The Retention Dashboard gives you actionable insights into customer segments, purchase patterns, and overall retention metrics. By identifying which customer groups are most likely to churn, you can take targeted steps to re-engage them, reduce churn, and increase their lifetime value.
This guide will help you:
- Analyze customer behavior using RFM (Recency, Frequency, and Monetary) analysis.
- Understand the metrics and features of each dashboard card.
- Leverage the data to make smarter marketing and business decisions.
What is RFM Analysis?
RFM stands for:
- Recency: How recently a customer made a purchase.
- Frequency: How often they make purchases.
- Monetary: How much they spend.
Each customer is scored from 1 to 5 in each category (higher scores indicate better engagement). This segmentation supports the principle that 80% of your business comes from 20% of your customers, helping you focus on the most valuable segments.
Customer Analytics by Segments Card
The Customer Analytics by Segments Card is designed to help you visualize and analyze customer behavior using the RFM model. By categorizing customers into RFM segments, you can identify high-value customers, those at risk of churning, and opportunities for reactivation. These RFM buckets can also be used as filters in Blasts and Automation, enabling you to tailor your marketing campaigns and automated workflows to specific customer groups for maximum impact.
Features and Metrics
- Timeframe: By default, RFM metrics are calculated for the past 365 days.
- RFM Table: View segments and sub-segments.
- Segment Selection: Drill down into specific segments to analyze their metrics.
- Metrics Overview: Key metrics include Customer Lifetime Value (CLV), Average Order Value (AOV), Days Between Orders, and Orders Per Year.
Key Metrics Explained
- Customer Lifetime Value (CLV): The total revenue a customer generates over their relationship with your business.
- Average Order Value (AOV): The average amount spent per order.
- Days Between Orders: Tracks the average time between repeat purchases.
- Orders Per Year: Measures the frequency of repeat purchases within a year.
- Total Revenue Per Segment: Total revenue generated by a specific customer segment over the last 365 days.
Visualizations
- RFM Table and Sub-Segments: Toggle sub-segments within RFM buckets to refine your analysis.
- Changes to Segments Chart: Displays trends in RFM scores over the last 30 days, helping you track segment movement.
- RFM analytics for the last 365 (no date range selector available)
- RFM Table
- Segments and sub-segments
- Segment selection
- Metrics
- Changes to segments
- Refresh button to access the most up-to-date information
RFM Table (right)
- Segmentation & Sub-segments Table
- In the top right-hand corner of the card, you will find a toggle button that will show sub-segments of each RFM bucket
- Segment Selection
- Use the selector dropdown above the RFM chart or
- Click on a segment of the chart
- The metrics to the left of the chart will update with values that are associated with the selected segment
- Current Customer Count and Percent Per Segment
- In the top left-hand corner of each segment, you will see the
- title of the segment along with
- the total number of contacts currently within the segment
- and the percentage that segment represents out of all your segments
Metrics (top left)
Customer Lifetime Value (CLV)
Customer lifetime value is the total worth to a business of a customer over the whole period of their relationship.
Below is how we calculate CLV:
Average Order Value (AOV)
Average order value (AOV) is the average order total spent when a customer places an order with your business. Knowing the average order value is used to help you make decisions about your pricing strategies. You can directly impact your revenue growth by increasing your AOV. Below is how we calculate AOV:
Days Between Orders
Knowing the average number of days between orders is useful in planning your marketing strategies for each RFM segment. This metric only includes returning customers and excludes first-timers. Below is how we calculate days between orders:
Orders Per Year
Orders per year is a metric that can be used to see how many repeat purchases your customers have made over the last year. Below is how we calculate orders per year:
Total Revenue From Segment (Last 365 Days)
The total amount of revenue generated from purchases made within the selected segment.
Changes to Segment Line Graph (middle left)
This chart includes the changes in the RFM score on contacts within. There will always be a lavender line that indicates the change in the segment for ALL segments. To compare a segment from the RFM chart to the change in all segments select a segment from the RFM chart. You will notice a line with the corresponding color added to the chart.
Example of the Changes to Segment chart with the At-Risk segment selected in the RFM chart.
Refresh Button (bottom left)
Use this button to refresh the data within the Customer Analytics By Segment Card. Note: RFM metrics can only be updated manually once every 6 hours whereas other cards can be refreshed every few minutes.
Key Performance Indicators (All Active Customers) Card
Key Performance Indicators (KPIs) are used to measure the performance of your business.
Features
- Date range selector
- Metrics
- Refresh Button
Date Range Selector (top right)
Use this menu to update the date range you would like to view within the KPIs card.
Note: Most of our KPI metrics are optimal at 365 days or more.
Metrics (left)
Avg CLV
Average customer lifetime value is the average of the total worth to a business of a customer over the whole period of their relationship. Scroll up to see how CLV is calculated.
Avg Days Since Previous Order
The average number of days since all customer’s last orders were placed.
Average Order Value (AOV)
This metric is a repeat of the Customer Analytics By Segment card’s Average order value (AOV). This is placed in the KPIs card so you can see it relative to the other KPIs for your business. AOV is the average order total spent when a customer places an order with your business. Knowing the average order value is used to help you make decisions about your pricing strategies. You can directly impact your revenue growth by increasing your AOV.
Customer Retention/Defection Rate
Retention rate only pulls for customers who have had a chance to churn. So they must have been a customer longer than 365 days or what is set manually within the RFM settings. Defection rate is the opposite of Retention rate and represents your customer churn. To calculate defection rate you would simply need to subtract the Retention rate from 100%.
Reactivated Lost Customers
If a customer goes from the Lost segment to any other segment they are considered reactivated from Lost. This metric is the count of customers who were considered lost at the time of their purchase and the total revenue gained based on the AOV calculated or set on the account.
Reactivated At-Risk Customers
If a customer goes from the At-Risk segment to Promising or Loyal segments then they are considered reactivated from At Risk. This metric is the count of customers who were considered at-risk at the time of their purchase and the total revenue gained based on an AOV calculated or set on the account.
Refresh Button (bottom left)
Use this button to refresh the data within the KPIs Card.
Note: RFM metrics can only be updated manually once every 6 hours whereas other cards can be refreshed every few minutes.
Order Card
The orders card uses a heat map style chart in order to help you visualize the most active days for orders to help plan your marketing efforts.
Features
- Date Range selector
- Heat map with order counts for each day within the selected date range
- Total orders metric
- Refresh button to access the most up-to-date information
Date Range Selector (top right)
Use this menu to update the date range you would like to view within the Orders card.
Heatmap Chart
This chart includes order activity in a heatmap-style chart to help visualize the most active days for orders in your business. Each row represents one week which helps to see trends in order activity over time.
To see the total number of orders for an individual date hover over the chart for the desired date.
Total Orders Metric
This the sum of all finished orders for the date range selected. In other words, each date within the chart above is summed up to this total number of orders.
Refresh Button (bottom left)
Use this button to refresh the data within the Orders Card.
Customer Check-ins Card
The Customer Check-ins card uses a heat map style chart in order to help you visualize the most active days for store visits to help plan your marketing efforts. This card is only available for accounts that utilize our Kiosk services.
Features
- Date Range selector
- Heat map with store visit counts for each day within the selected date range
- Total Check-ins metric
- Refresh button to access the most up-to-date information
Date Range Selector (top right)
Use this menu to update the date range you would like to view within the Customer Check-ins card.
Heatmap Chart
This chart includes store visit activity in a heatmap-style chart to help visualize the most active days for check-ins in your business. Each row represents one week which helps to see trends in the order activity for the account over time.
To see the total number of check-ins for an individual date hover over the chart for the desired date.
Total Orders Metric
This is the sum of all check-ins for the date range selected. In other words, each date within the chart above is summed up to the total number of check-ins.
Refresh Button (bottom left)
Use this button to refresh the data within the Customer Check-ins Card.
Wrap Up & Video Walkthrough
Did you know that 60-70% of customers do not return after their first visit? The ability to bring customers back time and time again not only increases their value to your business but allows you to focus your efforts on the right customers with the highest return on investment. What would it mean if every customer came back just one more time?