Segmentation - Word of the day #96

Segmentation - Word of the day #96



Segment your prospects/customers into buckets based on a pre-defined criteria, to identify cross-sell/Up-sell opportunities and execute targeted campaigns to increase engagement, improve retention and deliver better ROI.

The most common metric that is used for a post-purchase segmentation is the RFM metric. It evaluates the customers based on the recency, frequency, and monetary values.

1. Recency - When was the last time they purchased?
2. Frequency - How frequently did they purchase?
3. Monetary - How much did they spend?

These metrics help you to segment the customers into homogeneous groups, understand their traits based on past purchases, and engage them with more personalized campaigns.

Here's a knowledge-base article on how to set up RFM-based segmentation in Zoho CRM.

Previous 'Word of the Day': Auto-number Field
Next 'Word of the Day': CommandCenter