There are three internal sources of behavioral data that marketers can use to drive engagement. The interplay between these varied sources and a combinatorial approach can drive interesting and highly practical engagement strategies. Most marketers have ready access to the following sources of transactional information. These sources of data can be aggregated and used in isolation or together to handle live situations and drive positive customer engagement.
Retention for e.g. can be driven by measuring sudden drop in E-RFM and the relevant strategy directed by P-RFM. A sudden drop in E-RFM indicates a disinterest or lack of satisfaction that marketers can tackle better on a “point in time” basis rather than post facto. This really points to a potential future drop in P-RFM indicating that you could lose the customer. Obviously, a marketer would treat a valued customer’s engagement drop very differently from a first time consumers’. Some interesting use cases have been listed below to indicate the interplay of data elements and how marketers can take advantage of subtle changes in behavior to acquire, Improve sales uplift and retain customers.
This approach increases relevancy and timing of the marketer’s communication and positively impacts conversion –since every communication is based on context rather than a “universal” approach.
One last note about C-RFM (Category – RFM), Employing C-RFM gives much better insights on customer product orientation and can drive better targeted marketing over P-RFM. It is a marketer’ s call – and in general, a diverse product mix across value, utility and consumption pattern leans heavily in favor of C-RFM while P-RFM resonates better with a flat product mix.