Data-Driven Customer Engagement: Playbook for Leveraging RFM Analysis

How to Leverage Recency, Frequency, and Monetary Analysis for Revenue Growth
INTRO

Welcome to your ultimate guide to RFM Analysis:
a powerful tool that helps you understand and
engage customers more effectively.

In this playbook, we’ll take you step-by-step through the core principles of RFM analysis, and how Yotpo’s advanced RFM model integrates seamlessly with your SMS and email marketing tools to deliver highly personalized experiences.

We’ll also explore industry-specific benchmarks to provide you with actionable insights that can help tailor your approach for maximum impact.

You’ll also get expert recommendations on how to engage each RFM segment, with actionable tips for each, designed to drive customer retention, boost conversions, and grow your business.

Let’s dive in and learn how to transform your data into actionable strategies that will elevate your customer engagement and take your marketing efforts to the next level.

Table of Contents
01
Introduction to RFM Analysis
02
Inside Yotpo’s RFM Capabilities
03
Beauty
04
Wellness
05
Fashion
06
Food & Beverage
07
Home & Garden
08
Turning Insight Into Action
01
Introduction to RFM Analysis
02
Inside Yotpo’s RFM Capabilities
03
Beauty
04
Wellness
05
Fashion
06
Food & Beverage
07
Home & Garden
08
Turning Insight Into Action
Introduction to RFM Analysis
Chapter 01

Introduction to RFM Analysis

What is an RFM analysis?

RFM (Recency, Frequency, Monetary) analysis allows businesses to segment their audience based on key purchasing behaviors. By leveraging this analysis, you can unlock valuable insights into customer loyalty, optimize your marketing strategies, and maximize your ROI.

RFM Analysis is a data-driven marketing tool that helps businesses segment their customer base based on three key factors:

Recency (R)

This refers to how recently a customer has made a purchase. The more recent the purchase, the more likely they are to respond to your marketing efforts. Recency is a powerful indicator of engagement because customers who have purchased recently are typically more active and open to further communication or offers.

Frequency (F)

Frequency measures how often a customer makes a purchase over a given period. Customers who purchase frequently are usually more loyal and engaged with your brand. By analyzing frequency, you can identify your most devoted customers and nurture those relationships with tailored, loyalty-driven marketing tactics.

Monetary (M)

Monetary value looks at how much a customer spends. High-value customers, who consistently spend more, are crucial to the growth of your business. Understanding their purchasing patterns helps you identify opportunities to increase average order value, promote upsells, and personalize offers to retain these top spenders.

 

Together, these three elements provide a holistic view of your customers’ behaviors and help you build targeted, data-driven marketing campaigns. Instead of taking a one-size-fits-all approach, RFM allows you to segment your audience into distinct groups based on their activity and engagement level. Whether you’re looking to re-engage dormant customers or strengthen loyalty with your most frequent buyers, RFM analysis gives you the insights needed to take strategic action.

 

RFM Analysis in Action: Benefits You Can’t Ignore

RFM analysis isn’t just another data tool, it’s a proven strategy for unlocking deeper customer insights and driving smarter, more impactful marketing. By tapping into the power of Recency, Frequency, and Monetary data, you can stop guessing and start delivering highly personalized experiences that actually move the needle. Whether you’re focused on boosting retention, increasing average order value, or preventing churn before it happens, RFM gives you the clarity and control to make every campaign count.

 

Identifying Your Best Customers

One of the most powerful outcomes of RFM analysis is the ability to pinpoint your best customers, those who not only purchase frequently but also spend the most. By identifying these high-value segments, you can focus your efforts on nurturing these relationships, ensuring they remain loyal to your brand. This segmentation allows for personalized offers, exclusive rewards, and targeted campaigns that cater specifically to your top customers, leading to greater customer lifetime value.

 

Preventing Potential Churn

RFM analysis is also a valuable tool for churn prevention. By examining the recency of customer purchases, you can identify individuals who may be at risk of becoming disengaged or inactive. If a customer hasn’t made a purchase in a while, they may be slipping away. With this insight, you can deploy targeted campaigns (like re-engagement emails or personalized SMS offers) to bring them back before they leave for good. Early intervention allows you to re-engage at-risk customers and prevent churn.

 

Optimizing Marketing Strategy

RFM analysis enables businesses to optimize their marketing strategies by segmenting customers based on their behavior, rather than using generic marketing approaches. Understanding the frequency and monetary patterns of your audience allows you to craft more tailored and effective campaigns. Whether it’s offering exclusive deals to high-value buyers, sending loyalty rewards to frequent customers, or delivering re-engagement messages to dormant users, RFM allows for targeted messaging that speaks directly to each segment’s unique behavior. This precision not only improves the efficiency of your marketing efforts but also ensures that you’re getting the best possible ROI.

 

By leveraging RFM analysis, you can create a customer-focused marketing strategy that drives higher engagement, strengthens loyalty, and maximizes long-term business growth. Whether you’re targeting your top customers, preventing churn, or fine-tuning your marketing approach, RFM analysis is a powerful tool that can transform your customer relationships.

Inside Yotpo’s RFM Capabilities
Chapter 02

Inside Yotpo’s RFM Capabilities

Once you understand the power of RFM, the next step is putting it into action, and that’s where Yotpo comes in. Our RFM model was built to simplify the process, surface the insights that matter most, and help you act fast, without the need for manual work or complex setup. Here’s how Yotpo turns data into results.

 

No-Lift Data Analysis

Gain a deeper understanding of your customer data without the heavy lifting. With Yotpo’s RFM capabilities, there are no complex integrations or technical steps required. We automatically connect to your Shopify store to analyze your customers’ transactional data. Actionable insights are delivered all in one dashboard that is customized for your brand, so you can make data-driven decisions without hassle.

 

Segmentation at Scale

Smart segmentation is now effortless. Yotpo’s powerful algorithm works behind the scenes to organize your customers based on key shopping behaviors: the recency of their last purchase, frequency of purchases, and monetary spend with your brand. This intelligent segmentation ensures that you can target the right customer groups with precision, making your marketing efforts more efficient and impactful.

 

Actionable Insights

Unlock the power of your customer data with actionable insights. Quickly identify your best customers, spot those at risk of churning, and discover growth opportunities within occasional or new shoppers. With detailed behavioral insights on each segment, you can optimize your marketing strategy and create personalized campaigns that resonate with each customer group. These insights will help guide your next steps and inspire your next touchpoint.

 

Enhance Flow Strategy

Take your engagement strategy to the next level with automated, personalized messaging that targets the right customers at the right time. Fine-tune your flow strategy by tailoring your communications to each segment’s unique behaviors.

 

Build Better Campaigns

Supercharge your marketing campaigns by delivering the right message, to the right customer, at the right moment. RFM-driven insights allow you to increase revenue potential by targeting each segment with relevant incentives, personalized offers, and timely messages. By speaking directly to the needs of each customer group, your campaigns will become more impactful, driving both engagement and sales growth.

 

In the next chapters we will explore how RFM benchmarks vary across industries. By understanding where your business stands in comparison to others, you’ll gain valuable insights into customer behavior and identify areas to refine your marketing strategy. Every industry has its unique challenges and opportunities, so let’s break down how these benchmarks can guide you toward smarter, data-driven decisions.

Beauty
Chapter 03

Beauty

Key Takeaways of Beauty’s RFM Analysis

Featuring insights from Domaine

The world’s largest independent Shopify design and development partner. Purpose-built for ambitious and beloved brands. Domaine views RFM segmentation not just as a data exercise but as a foundational element of any successful, customer-centric marketing strategy.

The beauty industry shows one of the most balanced revenue distributions across RFM segments compared to other verticals. This reflects the unique nature of the category, driven by both replenishment cycles and brand loyalty, while also thriving on fast-evolving trends, experimentation, and discovery. These dynamics naturally lead to a healthy mix of loyal regulars and curious newcomers flowing in and out of the brand ecosystem.

Domaine knows that, for beauty clients, balancing retention of loyalists with acquisition of trend-driven shoppers is nuanced, and RFM analysis helps. These goals aren’t mutually exclusive; in fact, a well-orchestrated strategy is what helps our clients grow more revenue and win in a competitive environment.

Top Customers in this vertical are especially valuable, on average, they generate 22% of total revenue and, for most brands, these top customers make about five purchases per year. Domaine recommends understanding the different customer archetypes in high-value segments and tailoring communication like replenishment reminders based on repeat purchase rate and setting up tailored perks and communication based on loyalty VIP tier or subscription status. An omni-channel approach including a personalized onsite experience to this audience, such as offering GWP benefits, loyalty status, and subscription details throughout their experience goes far with this audience.

And nearly just important for continued growth is attracting trend-driven shoppers to inject new sales and energy into the brand. Domaine recommends experimenting with compelling and differing visuals curated for each channel and leveraging SMS as an exclusivity channel that can be curated quickly for on-trend messaging to bring those new buyers into the door.

Wellness
Chapter 04

Wellness

Key Takeaways of Wellness’ RFM Analysis

Featuring insights from Reload Media

As Australia’s leading digital agency, Reload understands the complexities of modern marketing. That’s why top brands trust us to evaluate their digital presence, analyse market trends, and guide their next steps toward success. For over 15 years, Reload Media has been the trusted partner for exceptional digital marketing solutions.

In the wellness industry repeat purchases are typically the key driver of revenue. In order to build repeat purchases building trust early on is key, especially as customers begin to include new products into their routine.

To support this behavior, setting up journeys that feel more educational, rather than a sales pitch is key. Little check-ins on implementation and progress, tips to build the routine, and reminders that match how often they’re likely using the product are important. A simple nudge at the right time can go a long way in building confidence and driving that second or third order.

Leveraging UGC from loyal customers – featuring their routines, results, and recommendations, to help convince newer customers to stick with it.

Notably, over 50% of combined annual revenue in this vertical comes from just two segments: Top Customers and Regular High Spenders, with Top Customers typically making 7 purchases per year, followed by Regular High Spenders, who make about 4 purchases per year on average.

Fashion
Chapter 05

Fashion

Key Takeaways of Fashion’s RFM Analysis

Featuring insight from Flatline Agency

Flatline works closely with high-growth fashion brands like Baskets Amsterdam, Kuyichi, and Oger, and we see RFM as an essential tool for simplifying complex purchase behavior into clear engagement actions.

Fashion is a fast-moving industry where trends and seasonality heavily influence purchasing behavior. While fashion brands have one of the highest average revenues per customer across all segments, overall purchase frequency tends to be lower compared to other verticals.

Success in this vertical often comes from aligning marketing cadences with product life cycles and seasonality, which RFM analysis supports and allows you to analyze customers more akin to this seasonality.

Top Customers in Fashion make up just 5% of the customer base, yet they place an average of 5 orders per year and contribute approximately 17% of annual revenue.

While the Need Attention and Sleeping High Spender segments, or more of the at risk customers account for a core percentage of revenue. However, because of seasonality that is common with most Fashion brands, these customers still contain a significant amount of high-potential buyers and shouldn’t be overlooked.

Food & Beverage
Chapter 06

Food & Beverage

Key Takeaways of Food & Beverage’s RFM Analysis

The food and beverage industry is fueled by customer habits, frequent consumption, and often, emotional loyalty. Among all verticals, Food and Beverage brands see the highest order volume per year across nearly every RFM segment, making frequency a core strength of this category.

What stands out most is the impact of Top Customers, who represent just 11% of the customer base, yet drive a remarkable 37% of annual revenue. These loyal buyers typically make purchases nearly every month, often at a lower AOV, but their consistency makes them incredibly valuable.

To maximize growth, Food and Beverage brands should focus on building long-term loyalty within this segment. Cross-selling into new product categories and promoting subscription programs are highly effective strategies to deepen engagement and increase lifetime value.

Home & Garden
Chapter 07

Home & Garden

Key Takeaways of Home & Garden’s RFM Analysis

Home goods brands serve a diverse customer base, from those making big-ticket, one-time purchases to others buying smaller, repeat items for ongoing home improvement or décor needs. RFM analysis helps these brands understand purchase cadence, identify loyal repeat buyers, and spot high spenders who may only shop for special projects.

One standout segment in this vertical is New High Spenders, who show the highest average order value (AOV) across all groups. These customers represent a major opportunity and should be nurtured immediately after their first purchase. The goal is to move them into the Regulars: High Spenders segment, which accounts for over 20% of total revenue, surpassing even the Top Customer segment in revenue contribution. Early engagement with personalized experiences and product discovery can be key to turning these one-time high spenders into loyal, long-term customers.

Turning Insight Into Action
Chapter 08

Turning Insight Into Action

With a clear understanding of your customer segments through RFM analysis, you’re ready to turn that knowledge into impactful action. In this chapter, we’ll provide you with actionable strategies for engaging each RFM segment. You’ll find practical recommendations designed to boost retention, optimize conversions, and enhance overall customer relationships. Plus, you’ll get expert insights from agencies specializing in data-driven marketing to help you make the most of your RFM insights.

 

Need Attention

Featuring Insight and Recommendations by Mattered

Mattered partners with leading brands to unlock growth throughout multiple areas of the marketing funnel. We merge human insight, creativity, and data analysis to craft impactful digital strategies

This segment consists of customers who previously exhibited high frequency and monetary value in their purchases but have recently become less engaged, failing to meet their past activity levels. These customers are showing signs of potential churn and have previously been a high value segment, making it crucial to act quickly before they disengage entirely.

The primary objective is to prevent imminent churn by reactivating their engagement. It’s crucial to act quickly through automation and tailor communication addressing their lack of recent activity.

Recommended Actions:

Personalized and Action-Oriented Messaging
In your initial messages, use action-oriented language to grab their attention, such as “Upgrade your routine now” or “Rediscover your favorites”. Personalize email content by including tailored product recommendations based on their previous purchases and reminding them of loyalty points or unused rewards.

Follow-Up with added Limited-Time Offers
As follow-ups, use playful and intriguing subject lines like “It’s not you, it’s us, isn’t it?” to spark curiosity and prompt opens. These fun messages break the ice and gently nudge them back into the conversation. Plus, leverage limited-time discounts or exclusive offers to create a sense of urgency and encourage a purchase.

Automate Churn Prevention
Create an automated multi-message flow when a customer enters this segment. Engage strategically by conditioning by loyalty redemption availability and including additional incentives like discounts in follow up messages.

 

Sleeping High Spenders

This segment consists of customers who have made infrequent but high-value purchases in the past but have not recently made a purchase. Their purchases were significant in the past, but since you haven’t seen them in a while, it’s time to reignite their interest and buying behavior.

The primary goal is to recapture high-value revenue by reactivating these previous big spenders. These customers have shown they are willing to make larger purchases, and with the right engagement strategy, they can be brought back into the fold.

Recommended Actions:

High-Touch Win-Back Campaign
To reconnect with these high-value customers, create a high-touch win-back campaign that makes them feel special and acknowledged for their past significant purchases. Start with a personalized email that highlights premium products or bundles similar to what they’ve bought before. Emphasize the exclusivity of the offering, showcasing how these items align with their previous high-value purchases.

Communicate with Customers on their Preferred channels with Wax and Yotpo
For many customers, especially outside of the US, WhatsApp is their preferred method of communication. With Wax and Yotpo’s integration, you can easily identify which customers in this segment use WhatsApp and send trigger flow messages directly to the app. Send an automated message when a customer enters the Sleeping High Spender segment directly to WhatsApp. Target these customers on WhatsApp in their relevant timezone, with winback strategies like personalized product recommendations and special discounts.

 

“For your highest value customers, it’s crucial that you’re staying top of mind, and a major part of that is messaging them on the channels they prefer to communicate on. Messaging on WhatsApp allows you to curate more personalized offers for these customers including sales or getting product feedback–it’s a perfect way to engage the biggest spenders.”Guillaume Escolier, Co-founder and CEO of Wax

 

Featuring Insight and Recommendations by Flatline Agency

Flatline works closely with high-growth fashion brands like Baskets Amsterdam, Kuyichi, and Oger, and we see RFM as an essential tool for simplifying complex purchase behavior into clear engagement actions.

Leverage SMS Nudges Strategically
To drive urgency to this audience, SMS nudges used as ‘last call’ or ‘24 hours left’ are particularly effective at bringing more dormant customers back. This strategy can be used during times of end of season or long weekend sales.

Tap into Past Loyalty Engagement
Drive urgency and provide value around the next purchase in a way that taps into past customer loyalty. Automate messages based on upcoming loyalty points expiration or how close they are to unlocking the next VIP tier.

 

Regulars – Low Spenders

This segment includes customers who make purchases consistently but with relatively low order values. Despite these customers’ relatively low value purchases, they drive consistent revenue.

The goal for this segment is to turn these customers into loyal subscribers or increase their average order value (AOV) by encouraging modest growth in their basket size. Provide frictionless ways for these shoppers to purchase and smart incentives to encourage additional spend.

Recommended Actions:

Drive New Subscriptions with Recharge and Yotpo
C
reate a flow for Regular Low Spenders based on past orders. After their second or third order of the same product, encourage them to start a subscription. Emphasize the benefits of regular and consistent consumption and recommend add on products to enhance their routine. Offer subscription benefits through Recharge like subscription discounts, customizable subscription timeframes, and even higher discounts with bundles.

Allow Frictionless Subscription Management with Recharge and Yotpo
Tailor your new subscription and upcoming subscription purchase flow for customers in this segment. For each new Recharge automated subscription flow, you can easily add in a condition to target your Regular Low Spenders differently than your Regular High Spenders. Encourage lower spending customers to explore additional products that pair well with their current subscription.

 

“Customers who shop consistently—even in smaller amounts—are showing strong intent. With Yotpo’s segmentation and Recharge’s flexible subscription tools, brands can turn those steady buyers into loyal subscribers by offering smart incentives and a seamless management experience. Acquiring new subscription customers and tailoring subscription flows by RFM segment means you’re not just increasing AOV—you’re building lasting, personalized customer relationships.” – Lindy Crea VP of Partnerships & Solutions @ Recharge

 

Engage Strategically with Loyalty Communications
Loyalty programs are an excellent way to keep these customers coming back and gradually increase their likelihood of expanding category adoption and AOV. In fact, we typically see Loyalty customers who are engaged on SMS have a 32% increase in AOV and are purchase 4x more a year. To engage these customers on loyalty, promote Email subscribers to sign up for SMS and send automated loyalty flows like redemption reminders, VIP tier entry, and birthday reward communications on both Email & SMS channels.

Top Customers

This segment consists of customers who have made recent purchases and have spent a high value at a high frequency compared to other customers. These are your most profitable and loyal buyers, and nurturing this group is key to long-term success.

The goal with this segment is to maximize retention and lifetime value by continuing to engage and reward your most profitable customers. Keeping these customers loyal and engaged ensures that they continue to be a steady source of high-value revenue.

Recommended Actions:

Session Enrichment and Tailoring Email & SMS Communications with Elevar and Yotpo
L
everaging Elevar’s Session Enrichment capabilities, you can easily recognize these shoppers onsite, send this data back to Yotpo and subsequently tailor abandoned cart, browse abandonment and even product recommendation flows on Email & SMS to this segment. For example, adjust your tone to acknowledge their value, communicate loyalty status, and personalize incentives to keep them engaged.

 

“Your best customers deserve your best messaging. With Yotpo’s RFM data and Elevar’s Session Enrichment, brands can identify high-value buyers across sessions and trigger personalized flows that reflect their loyalty. Whether it’s a tailored cart reminder or a VIP incentive, this level of precision keeps top customers engaged—and coming back.” – Brad Redding, Founder of Elevar

 

Avoid Generic Messaging
When engaging with your Top Customers, it’s important to avoid one-size-fits-all messages. Tailor your communications to reflect their loyalty and high value to your brand. Condition your flows so that each message feels exclusive and relevant to their status as top-tier customers.

Offer Unique Rewards and Exclusive Early Access to New Products
Go above and beyond standard loyalty incentives by offering special sales, Gift with Purchase (GWP), or even VIP experiences for your Top Customers. Reward these high-value customers by offering early access to new product releases or limited-edition items. They will appreciate the exclusivity and feel valued as top supporters of your brand.

Regulars – High Spenders

This segment consists of customers who consistently make high-value purchases. They are repeat buyers who regularly spend significantly, making them an important group to nurture.

The goal with this segment is to drive customer retention by offering value and exclusivity. Work to expand category adoption and learn more about their preferences and interests, while deepening your relationship with them to enhance their lifetime value.

Recommended Actions:

Encourage Customers to Download Your App ft. Tapcart
A
s these customers are regularly making significant purchases with you, encouraging them to download your brand’s app is ideal. These customers having your app directly on their phone, opens up the possibility for exclusive offers like first access to new product launches or exclusive app-only sales. Leveraging Tapcart’s mobile app capabilities and the Yotpo x Tapcart integration will allow you to not only offer these exclusive offers to app customers, but also open up a new communication channel–push notifications.

 

“For your most loyal shoppers, having your app on their phone means more than convenience—it’s a gateway to exclusivity, deeper loyalty, and greater brand engagement. With Tapcart, we typically see app users drive a 12% boost in AOV and 82% increase in revenue-per-session, making mobile your most valuable channel.”Jon Knott, Director of Ecosystem Partnerships @ Tapcart

 

Treat these customers as VIPs with special Loyalty Rewards
Since these customers are already spending a significant amount regularly, treat them as VIPs. You can set up dedicated Loyalty earning rules for them giving bonus rewards after reaching a particular spend threshold or each time they purchase from a new category. Automate Loyalty communications via SMS & Email like points updates, redemption availability, and new VIP tier entry.

Enroll your Customers into a Customer Advocacy or Ambassador Program with Later
R
each out to these customers and invite them to sign up for your customer advocate or ambassador program. Reward these customers and creators with promo codes, discounts, products or points in exchange for posting about your brand on social media or leaving a product review about the item they purchased.

 

“Building customer loyalty is critical to building a profitable and sustainable revenue stream. When you create customer and creator advocacy programs, it creates a mechanism to engage your top customers and give them an opportunity to promote how much they love your brand, ultimately supporting new customer acquisition.” — Kira Klaas, VP Corporate Marketing @ Later

 

New High Spenders

This segment consists of recent customers who made a relatively high-value purchase but have not yet developed ongoing buying patterns. These customers represent a key opportunity to solidify brand affinity and loyalty early on to prevent them from becoming a one-time, high-value buyer.

The goal with this segment is to solidify brand affinity and loyalty early. By nurturing these high-value customers from the start, you can increase the likelihood that they’ll return for repeat purchases, turning them into long-term, high-value supporters.

Recommended Actions:

Create a VIP Post Purchase Experience With Digioh and Yotpo
To increase likelihood of retaining these customers you need to provide a premium tailored experience. Set up a condition post-purchase to identify these high-value new shoppers and send them a survey via Digioh to learn more about their shopping preferences and leverage this data in your future SMS & Email strategy. Learn crucial information to use to personalize future messaging–for example, their skin and hair type and fragrance preferences. Use this data to send them more personalized recommendations and better anticipate their next purchase.

 

“Capturing zero-party data is one of the most powerful plays in the retention game. With Digioh, brands can launch VIP post-purchase surveys that immediately pass customer preferences into Yotpo, powering more personalized email and SMS flows. It’s real customer insight fueling real revenue—and the fastest way to turn a one-time big spender into a lifelong brand advocate.” – Blake Imperl, SVP of Marketing @ Digioh

 

Engage After Delivery
Once their order has been delivered, send an email that includes educational content about the specific products they purchased, as well as information about your brand ethos and values. This is also a great opportunity to encourage further engagement steps, such as subscribing to SMS updates, following your brand on social media, or joining your loyalty program.

New Low Spenders

Featuring Insight and Recommendations by Avex Designs

Avex helps industry-leading brands design, build, and optimize unified e-commerce experiences that retain customers and drive business growth. Avex leverages RFM analysis to make sense of customer behavior and translate it into action.

This segment includes recent customers who made a relatively low-value purchase. While they’ve shown interest in your brand, their purchasing behavior has yet to establish a pattern. 

The primary goal with this segment is to secure the crucial second purchase to start building lasting buying habits.

Recommended Actions:

Use Threshold-Based Incentives Strategically
A
successful strategy for lower spenders is offering a threshold to reach with additional value. Offering something like “Spend $75, get a free trial-size product” or “Spend $100, unlock a limited-edition item” gives customers a clear reason to return—and spend more. It’s not just a discount; it’s a way to increase product exposure and introduce them to items that may become repeat purchases.

Send Abandoned Cart Messages on WhatsApp with Wax and Yotpo for Relevant Customers
A
s these new customers continue to browse your site, it’s a critical moment to attempt to bring them back for a second purchase. Abandoned checkout is potentially the most critical as part of this customer journey. Using the WAX and Yotpo integration, you can automatically send a WhatsApp message to relevant customers who abandon their cart. Through this channel, send timely reminders, include images, videos of the abandoned items and offer personalized incentives, such as a discount or free shipping, to motivate them to finalize their purchase.

“With WhatsApp boasting open rates above 95% and its conversational nature, we can better understand why each customer abandons their cart and guide them back to purchase by offering personalized solutions. This approach allows us to recover 25% of abandoned carts directly through WhatsApp.” – Guillaume Escolier, Co-founder and CEO of Wax

 

Create a “Discover Your Favorites” Onboarding Flow
D
evelop a “Discover Your Favorites” onboarding flow that introduces them to other categories of your products. Help them explore new items they might love by focusing on category education. This approach encourages customers to engage more deeply with your brand, guiding them to make another purchase beyond their initial order.

 

Inactive Customers

Featuring insight and action from Reload Media

As Australia’s leading digital agency, Reload understands the complexities of modern marketing. That’s why top brands trust us to evaluate their digital presence, analyze market trends, and guide their next steps toward success. For over 15 years, Reload Media has been the trusted partner for exceptional digital marketing solutions. Reload prioritizes omni-channel execution of RFM strategy to set their clients apart and unlock even greater success.

This segment includes individuals who have not made any significant purchases in the last year, either in terms of frequency or monetary value. These customers have disengaged from your brand, and now it’s time to attempt a re-engagement.

Reload Media recommends always approaching this segment with a question: are they truly disengaged, or just not reachable through the channels we’re using? Attempting to test these customers’ readiness to reengage with your brand through a multichannel reengagement strategy is key. 

Recommended Actions:

Automate a Multi-Channel, Multi-Message Flow
S
et up an automated multi-channel flow that engages inactive customers across email and SMS. This flow should use attention-grabbing subject lines like “Remember Us?” or “We Miss You!” to catch their attention and prompt them to re-engage. Connecting the segment data to additional platforms like paid advertising can help you target this segment on paid platforms, especially important if they haven’t stayed subscribed to your Email & SMS channels.

Trigger timely and personalized onsite popups
R
eload Media also recommends leveraging onsite pop-ups for this audience. If a returning Inactive Customer hits the site, but isn’t opted in, you can trigger a pop-up with a cheeky message that includes welcome back messaging and offer to try and bring them back. 

Include a Quick 1-Question Survey
A
few days after the first couple of messages, include a quick, 1-question survey in your email to gather valuable intelligence about why they stopped purchasing. This insight will help you understand their reasons for disengagement and improve future customer retention strategies.

Chapter 09

Conclusion: Make Every Message Matter with RFM

No matter your industry, RFM provides the clarity to understand your audience, the benchmarks to measure success, and the tools to take targeted action.

This isn’t just about data. It’s about connection. RFM enables you to speak directly to each customer’s journey with your brand, whether they’re loyal top spenders, first-time buyers, or shoppers who’ve gone quiet. With smart flows, tailored messaging, and real-time insights, you can turn every interaction into an opportunity to build trust, boost loyalty, and drive long-term growth.

Now it’s your turn. Use the playbook. Dive into your segments. Start testing flows, experimenting with offers, and delivering campaigns that truly resonate. And remember, you don’t have to do it alone. Yotpo is here to help simplify the process, unlock insights, and automate engagement at scale. Because when you treat every customer like your best customer, results follow.

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