Divide your database into segments based on RFM analysis. For example, “Loyal Customers” are those who have recently made frequent, high-dollar purchases, while “Dormant Customers” have not made a purchase in a while. This segmentation allows you to personalize your actions.
By understanding the needs and behavior of each segment, you can personalize your offers and promotions. Offer discounts to dormant customers to reactivate them, or exclusive benefits to loyal customers to retain them further.
By identifying high-potential customers, you can implement targeted loyalty programs. Offer rewards to loyal customers and encourage them to come back for more purchases.