Understand the characteristics of my customer base

There are several interests to have a solid base for customer knowledge:

  • Know the main characteristics of your customer base
  • Identify opportunities on certain segments
  • Measure the impact of your actions

Thanks to Octolis, you have the two pillars of customer knowledge at your disposal:

  • Complete update reporting automatically
  • Capacity to answer ad-hoc questions

Standard reporting on customer knowledge makes it possible to answer questions like:

  • Who are my customers: age, gender, geographic distribution, etc.
  • To what extent my customer base is usable: completion level of the main fields, distribution of optins, etc.
  • What is their purchasing behavior: decomposition according to the number of purchases, evolution frequency of purchase, cumulative CA monitoring according to different characteristics, etc.

Analyze performance by RFM segment

RFM segmentation is a great tool for analyzing the behavior of your customers, and implementing relevant actions for each segment.

Thanks to Octolis, you will be able to set up an RFM segmentation in a few minutes.
You can analyze performance according to each segment, and of course have RFM segmentation in your marketing / CRM tools to personalize your communications.

How RFM segmentation works

RFM segmentation classifies customers according to their individual buying behavior.
Each contact is scored based on 3 criteria:

  • R = Recency of last purchase.
  • F = Frequency of purchases.
  • M = Cumulative amount of purchases.

For each criterion, the contact has a relative score ranging from 1 (low) to 6 (high).
For example, if a contact has R = 1, it means that he or she is part of the 1/6 of the database of customers with the oldest last purchase date.
Next, we combine the F and M ratings into “FxM” to get a two-dimensional rating on which segments are based.
For example, we can define the segment “Best customers become passive” with R IN {1,2} and FxM IN {5,6}.

In theory, with a 2-dimensional scoring, having 6 potential values each, you can build up to 6 x 6 = 36 segments. But in general, there is no point in having more than 10 segments.

Analyze customer retention

Customer retention analysis can rely on different reports:

  • The evolution of the loyalty rate
  • The number of purchases made according to the characteristics of the first purchase
  • Customer cohorts analysis of the number of purchases and the cumulative turnover
  • Analysis of the reset period according to different factors
  • And we could list many others ..

Thanks to Octolis, you will have a standard report to analyze your customer retention easily.