Recency, Frequency, and Monetary segmentation, famously known as RFM analysis, is one of the best tools used in the retail industry to determine which customers are suitable for specific marketing campaigns. RFM segmentation also helps identify customers who might be leaving soon and those who advocate for your brand. Generally, when RFM segmentation is executed, you'll have 10 customer groups, including champions, loyal customers, hard-to-lose customers, hibernating customers, about-to-sleep customers, promising customers, recent users, those who need attention, price-sensitive customers, and lost customers. LYTTY AI evaluates your customers using this algorithm and provides monthly predictions based on these parameters.
LYTTY offers numerous helpful predefined segmentation templates that retail businesses can utilize for rapid and effortless segmentation. These templates have been developed by analyzing the requirements of hundreds of customers, and they are packaged to simplify your life. For instance, with just a click of a button, you can identify your frequent customers who haven't visited in the last 2 months. Once a segment is created, you can launch a campaign to re-engage them
LYTTY also offers a custom segmentation option, allowing you to create customer segments according to your preferences. If you are already familiar with how customer segmentation works, this feature will greatly benefit you.
Advanced customer segmentation is a feature provided by LYTTY's premium editions. With this feature, your team can drag and drop multiple customer criteria to initially assess the potential of a group. If the group appears promising, you can then create it as an official segment. This functionality assists your marketing team in evaluating various options and understanding their potential before finalizing any segments.