RFM based Marketing Automation is one of the most unique features of SALESmanago Marketing Automation platform. It has been designed specifically to cover the marketing automation processes at online stores, eCommerce and B2C companies.
Unlike the traditional marketing automation tools which were created mainly for B2B companies and cover linear purchase processes present in B2B world, RFM based Marketing Automation feature enables in a unique way to address the nonlinear purchasing processes (Customer Journey) observed at B2C companies and online stores. RFM based Marketing Automation aims at realization of Customer Value Marketing strategies, aiming to increase customer value.
RFM based Marketing Automation feature segments customers based on purchases and transactions made by them. Transaction Analysis and segmentation goes beyond the value of the purchase and takes into account two additional dimensions: the frequency and the time elapsed since the last purchase.
It automatically created segments can then be used for implementation of:
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one-off marketing campaigns, such as sending emails, text messages, or the implementation of targeted advertising campaigns
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creating a completely new, non-linear model of automation rules, which aim to automatically migrate customers from the less valuable to most valuable customer segments
RFM module advanced segmentation and analytics
Advanced segmentation of customers
RFM (Recency, Frequency, Monetary) is a module which enables to analyze purchasing behaviors, segment customers and automate marketing and sales processes based on transactional data. It analyze every customer in terms of three basic information:
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Recency – shows when was the last time a customer made a purchase order in the following dimensions: long, medium, short
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Frequency – shows how regularly does this customer make a purchase in the following dimensions: regular, casual, often
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Monetary – (the purchase value) shows how much money does this customer spend over a period of time in the following dimensions: spender, average, saver
Such customer segmentation allows you to project far more efficient marketing strategy, optimize your sales and marketing spendings, as well as think strategically about how to engage your customers.
RFM Analysis – available customers’ segments
The main goal is to emerge the most active customers. With this data combined with RFM analysis you can predict your customer’s behavior, as well as impact on them in advance.
1. Recency
Analytical dashboard RFM presents information about customers recent activity in time segment, thereby dividing users who bought within a period of time that was either:
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short
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medium
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long
By analysing this data in the SALESmanago Marketing Automation system, we can compare the number of recently purchased products to the number of purchased products in the past by customers. We can also notice the difference between the revenue and the number of transactions made, and estimate the exact time in which we achieved the highest profit.
2. Frequency
Analytical dashboard shows customers in terms of their frequency of buying new products in time segments, thereby dividing them into customers who buy:
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casually
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regularly
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oftenly
The analysis of this data allows you to compare the number of transactions made by the particular contact groups and the number of customers in segments, and thus showing us the characters, preferences and trends in various contact groups, depending on the frequency of performed transactions.
3. Monetary
Analytical dashboard presents the number of customers in terms of how much money they spend on our products in time segments, thereby distinguishing them as a:
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saver
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average
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spender
This analysis enables us to determine the character of particular customer groups, compare the frequency and the number of transactions made by particular consumers’ segments, so you can create even better personalised offer based on cross-selling and up-selling strategies.
Analytical dashboard RFM allows us to correlate two variables, which show purchase preferences and trends of customers. These variables comparison results in detailed information about customers including:
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recency and frequency
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frequency and monetary value
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recency and monetary value
RFM based Marketing Automation – new approach to marketing automation for Online Stores and B2C companies
RFM based Marketing Automation feature automatically segments contacts in your database depending on their transactional activity, which can be enhanced by behavioural data and based on that you can run a complete range of marketing processes
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One-off marketing actions to selected segment or group of segments
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Fully automated marketing campaigns and processes run automatically depending on the customer migration between various segments
It allows you to personalize real-time communications in all marketing channels, including:
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Email Marketing and dynamic email messages
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Dynamic and personalized website content
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Social Media ( via automatically created Facebook Custom Audiences)
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Advertising networks
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Mobile marketing (SMS messages, Mobile Applications)
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Telemarketing campaigns for particular customer segments
Automation of marketing processes allows to respond to any desirable and negative contact behavior automatically, in real time. In case a premium customers lose the interest to your offer, you can send them personalized email in order to re-engage them.
In addition, it facilitates the sales process management by placing your contacts on particular sales funnel stage, thus supporting the identification of potenial key customers. New, dynamic, 360 Degree Customer View may be then used to create a totally new structure of marketing automation processes using e-mail, SMS messages, dynamic website content, mobile, social media, advertising networks and direct sales to bring the customer to the highest value segments of cunsumers.
Effects of use:
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Full control and optimization of marketing spendings
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Adjusting an offer to a profile and purchase willingness of customers
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Possibility to predict and impact on customer’s behaviours
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Possibility of designing an effective marketing strategy
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Help in identifying the potential key customers for your business
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Possibility of planning and sending automatically your offers in the future, adjusting to the future customers’ needs
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Highly detailed analysis of customers
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An innovative method of activating users who show low level of engagement and purchase willingness
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Creating Custom Audiences and even more precise targeting ads on Facebook depending on customer’s engagement level
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Intuitive management of predefined contact groups
Customer Reference
„I would like to highlight the work and attention delivered to me, regarding all about training, explanations, and education in SALESmanago platform. The full information given through Support Team is like added value to make right decisions and go forward with this project. I also want to give thanks for the kindness, closeness, and professional work. And one more thing is the fact that your team has support in Spanish, that point is strongly important to boost the Spanish market.”
Marcelo César Paladino, marcelopaladino.com
