Be Careful Sending Incentives To This Customer Segment


When you start sending incentives to customer segments, there’s one segment you should be cautious with:

Recent customers.

Recent customers are a great segment but for other purpose. Not for incentivized sales.

In RFM recent customers are customers with a high R value (5). In other models they might be ones who bought this week or this month.

Whenever you’re using incentives, be careful putting incentives in front of these customers.

  1. They might be sensitive to being “forced” to buy so soon after their last order.
  2. They might see an incentive as being a better deal and try to return and re-buy with the incentive.

Instead, use content around your product line or ideas on how to benefit/use your products. Basically, build up their trust and get them primed to buy again soon.

Repeat Customer Insights will automatically segment your entire customer base for you based on the data you already have. Ranging from 5 to 30 to over 125+ different segments using RFM and other models, you can pick how much power you want to harness.

Eric Davis

This originally appeared on the LittleStream Software Blog and is made available here to cast a wider net of discovery.
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Steve has entrepreneurship in his DNA. Starting in the early 2000s, Steve achieved eBay Power Seller status which propelled him to become a founding partner of, a contact lens and eyewear retailer. Four years later through a successful exit from that startup, he embarked on his next journey into digital strategy for direct-to-consumer brands.

Currently, Steve is a Senior Merchant Success Manager at Shopify, where he helps brands to identify, navigate and accelerate growth online and in-store.

To maintain his competitive edge, Steve also hosts the top-rated twice-weekly podcast eCommerce Fastlane. He interviews Shopify Partners and subject matter experts who share the latest marketing strategy, tactics, platforms, and must-have apps, that assist Shopify-powered brands to improve efficiencies, profitably grow revenue and to build lifetime customer loyalty.

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