Summary

• In this dashboard, you can segment your customers based on their purchase behavior. Here customers are segmented based on how often they have purchased (Frequency), when they have last purchased (Recency), and how much they have spent on average (Monetary).
• This report can help you analyze customers' purchase behavior, and based on that you can identify a loyal customer and run a campaign as a loyalty reward to keep them motivated.
• You can also identify the customers who have not made any purchases for a long time and engage such lost customers by creating a segment and running a campaign to motivate them.

RFM Report Configuration

Log in to the social annex admin site https://admin.socialannex.com.

Then navigate to Reports >> RFM Dashboard.

Click the Go button under the RFM Dashboard.

RFM dashboard

• The below image shows the RFM dashboard through which you can see all the details of customers' purchase behavior.
• RFM dashboard settings allow you to modify all the dashboard configurations and purchase ranges.

• In the RFM dashboard, three data points are being referenced, and three ranges for each data type. Please see this described in the table below.

Note: The ranges for each data point can be customized by going to the RFM Dashboard Settings.

Each of these parameter values (Indicated as Types in the table) can be customized based on your specific requirements. You can customize these parameters by going to RFM settings.

Calculation Method for Dashboard Segments

In the above image C1, C2, and C3 represent the Recency (columns) and R1, R2, and R3 represents the Frequency (Rows).

Calculation for R1-C1 section

In this section R1-C1, the customers who have made 11 or more purchases in a year and have made their last purchase within 0 to 7 days are segmented.

Note: All the sections have different calculations concerning Recency (columns) and Frequency (rows)

Calculation Within a Segment

Each segment has four sub-sections (Low, Medium, High, and All) that denote members with a specific average order value who fall within that range of purchase Recency and Frequency.:

Low

This sub-section segments the customers whose average order value falls in the range determined as Low for average order value. In this example, between $0-$10.

For example, the Low sub-section is selected within the segment (R1-C1).

Customers who meet all the following criteria will be included in the Low sub-section of the R1-C1 segment:

1. Customers who made their last purchase within 0 to 7 days.
2. Customers who have made 11 or more purchases within the last one year.
3. Customers whose average order value lies between $0 to $10.

Med

This sub-section segments the customers whose average order value falls in the range determined as Med for average order value. In this example, between $11-$200.

For example, the Med sub-section is selected within the individual section (R1-C1).

Customers who meet all the following criteria will be included in the Med sub-section of the R1-C1 segment:

1. Customers who made their last purchase within 0 to 7 days.
2. Customers who have made 11 or more purchases within the last one year.
3. Customers whose average order value lies between $11 to $200.

High

This sub-section segments the customers whose average order value falls in the range determined as High for average order value. In this example, $201 or more.

For example, the High sub-section is selected within the individual section (R1-C1).

Customers who meet all of the following criteria will be included in the High sub-section of the R1-C1 segment:

1. Customers who made their last purchase within 0 to 7 days.
2. Customers who have made 11 or more purchases within the last one year.
3. Customers whose average order value is $201 or more.

All

This sub-section includes all the customers who meet the Recency and Frequency criteria for the segment irrespective of their AOV (Monetary).

For example, the All sub-section is selected within the individual section (R1-C1).

Customers who meet all the following criteria will be included in the All sub-section of the R1-C1 segment:

1. Customers who made their last purchase within 0 to 7 days.
2. Customers who have made 11 or more purchases within the last one year.

Make an Excel Request

• You have an option to export a specific segment of members into an Excel file.
• By clicking on any sub-section dropdown list, you will have two options Make an Excel Request and Create Segment.
• For Example, if the High sub-section (R2-C1) dropdown list is clicked, you will have two options Make an Excel Request and Create Segment. Select Make an Excel Request to export the list of members to an Excel file.

• By clicking on the Make an Excel Request, a pop-up will be displayed, and the email address of the user is automatically shown in the textbox, you can add multiple email addresses separated by a comma.

• An email with the Excel report will be sent to the email address provided in the pop-up within 15 minutes. The body of the email will include a table that resembles the one shown below.
• Select Download Excel within the table to access the Excel report with the segment of members.
• Administrators will be able to access and download the file for 24 hours after receiving the email. After 24 hours the file will no longer be accessible.

• From the Excel report, you can see all the details of customers who meet the criteria of the segment selected within the RFM Dashboard. In this example, the High sub-section of R2-C1.
  • Purchase date within the last 0 to 7 days
  • Number of orders between 4 to 10 within the past year
  • The average order value is $201 or more

Create a Segment

• By selecting a sub-section of any segment, you can open the drop-down menu and you will see the option, Create Segment.
• For Example, if the Low sub-section (R1-C1) drop-down list is clicked, you will have two options Make an Excel Request and Create Segment. Select Create Segment

• A Create a Segment pop-up will appear where you need to provide a unique name for the segment name and status details if you toggle ON the button this segment will become active.

• After entering the required information, select, Save. Once saved, the new segment will be created.

• You will receive an email with all the details of the newly created segment. The details will appear in the body of the email in a table that resembles the example below.

• By clicking DOWNLOAD EXCEL, the details of the segment will be downloaded as an Excel file. The Excel spreadsheet will include segment members' User ID, email address, date of their last purchase, number of orders, and average order value.

• You can also see the details of the new segment created within the Annex Cloud LEP segments dashboard by selecting the Products tab, clicking Go under Segments, and selecting Edit in the Action column next to the newly created segment.

The segments created in an RFM (Recency, Frequency, Monetary) dashboard will not have any impact automatically. Any addition or removal of members wouldn't be reflected in those segments automatically.

RFM Dashboard Settings

• Through the RFM dashboard settings, you can define the range values for Recency, Frequency, Monetary, and Legends.

Recency

• You can set the recency range for low, mid, and high and define them as per the requirement.

• By selecting the Edit icon, you will be able to modify the value.
• You have two options to define the duration: Days and Months.

• Once everything is updated click Save to implement the new ranges for Recency of purchase.

Frequency

• You can set the frequency range for low, mid, and high and define them as per the requirement.

• By selecting the Edit icon, you will be able to modify the value.
• You can define the time frame up to 5 years. By default, the time frame is set to 1 year which means the system will check and show the number of purchases a customer has made within the last 1 year.

• Once everything is updated click Save to implement the new ranges for Frequency of purchase.

Monetary

• You can set the monetary range for low, mid, and high and define them as per the requirement.

• By selecting the Edit icon, you will be able to modify the value.
• You have many options to define the currency per the business' requirement (USD, EUR, DOP, etc.).

• Once everything is updated click Save to implement the new AOV ranges.

Legends

• The last tab within the RFM Dashboard Settings is named Legends. If you click into this tab, you can use the color coding on the RFM dashboard to help you define groups of customers based on their purchase activity. This can make reading the dashboard easier and assist you in quickly finding the segment of customers you’d like to identify.
• For example, you may indicate the blue color code as Hero Customers who have spent recently and spend frequently.
• By clicking on the Edit icon, you will be able to modify the details for each section of the legend.

• Once everything is updated click Save to update the Legend.
• The below example shows how you can define your customers based on their purchase frequency: