Classify customer groups and determine management priorities
Implement classified management for customers, design and customize relevant advertising campaigns, promotional activities, etc. to retain and reactivate customers. According to the hierarchical division in step 3 above, we divide customer groups into “best customers”, “new customers with high consumption”, “active loyal customers with the least spending”, “best customers who have lost”, etc.
Among them, the best customers, this group consists of customers in the R1, F1 and M1 levels, which means that they have recently made transactions, they have a higher frequency of transactions, they buy frequently, and spend more money than other customers. For the convenience of management, we can use RFM111 to represent this type of customer group.
New customers with high consumption, this group consists of customers in RFM layers 141 and 142. These customers have only made transactions once, but they have spent a lot of money recently.
Active loyal customers with the least spending, this group consists of customers in RFM layers 113 and 114, in other words, these customers have made transactions recently and frequently, but spend little.
The best customers who are likely to churn are composed of customers at RFM levels 411, 412, 421, and 422. That is, they trade frequently and spend a lot, but the interval between each transaction is long.
Therefore, customer service staff can use the changes in R and F to infer the changes in customer consumption and predict the situation of customer churn. According to the possibility of customer churn, a list of customers is made, and then analyzed from the perspective of M, so that the focus can be placed on customers with high contribution and high churn chance, so as to take remedial measures.