Marsello's RFM analysis helps you target customers based on recency, frequency, and spend, optimizing engagement and retention.
What is customer segmentation?
Customer segmentation divides customers into groups for more targeted and effective marketing. Common types include:
Demographic segmentation: Groups customers by age, gender, life stage, etc.
Geographic segmentation: Segments based on location, such as country, state, or city.
Behavioral segmentation: Uses purchase data to group customers by shopping activity, like last purchase date.
Marsello leverages behavioral segmentation with RFM analysis to help retailers identify valuable customers and create effective marketing strategies.
Why customer segmentation is important?
Every customer database is diverse, with shoppers displaying unique purchasing behaviors. Segmentation helps retailers send the right message at the right time to the right customers.
How Segmentation Helps:
✅ Understand Your Business Better – Identify your best customers, spot those at risk of leaving, and uncover growth opportunities.
✅ Boost Customer Loyalty – Nurture loyal customers and repeat buyers with personalized experiences, timely emails, and exclusive promotions to strengthen relationships.
✅ Enhance Email Marketing – Targeted emails increase engagement, improve open and click-through rates, and drive higher conversions while reducing unsubscribes.
✅ Reduce Costs & Improve ROI – Focus marketing efforts on high-value customers. Targeted campaigns are more effective, lowering costs and increasing returns.
How are the customer segments calculated?
Your customer segments are determined using RFM analysis, which consists of three key factors:
Recency – When the customer last made a purchase.
Frequency – How often the customer purchases.
Monetary – How much the customer has spent.
With RFM, customers are grouped into segments, from 'Best' customers (loyal and high spenders) to 'Lost' customers (unlikely to return).
By connecting Marsello to your eCommerce or POS system, your customer database and order history (last purchase date, total spend, number of orders) sync automatically, distributing customers across six RFM segments on your dashboard.
Segment definitions:
Best: ordered recently, ordered the most often, and spent the most!
Loyal: ordered recently, ordered often, spent good money.
Promising: ordered recently, ordered more than once, and spent an average amount.
New: made their first order recently.
At risk: haven't ordered recently.
Lost: haven't ordered in a very long time.
📝 Note: These segments are mutually exclusive, meaning that each customer can only be in one segment at one time.
Extra eCommerce segments:
Window Shoppers: has a store account and has never made an order.
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