Before Starting Any Loyalty Program, Identify Who Your Best Customers Are


There are lots of tactics for building customer loyalty. The first step missed by stores is identifying who your best customers. That’s required so you can tailor your plans to getting more of those types of customers.

RFM and models based on RFM like Repeat Customer Insights’ customer grades are simple to understand while having a lot of hidden power.

What I like about RFM is how well it scales to small and large store. They work on stores with hundreds of customers and stores with millions of customers.

Much of the advice for the different segments stay the same too, the main difference is how many segments you look at. Only a couple hundred customers, use five or so segments and group similar ones (like in Automatic Segments). Millions of customers? Use the full 125 segments provided by RFM.

You can even modify how many segments are in each component of RFM. The app uses five per component but you can use as little as three (for 27 segments) or as many as ten (1,000 segments) if you want to run it yourself.

Five RFM segments makes the most sense though: best, better, average, below-average, and worst.

Once you identify your best customers and who has potential, then the different loyalty tactics can start paying off.

Repeat Customer Insights automatically uses RFM and a custom grading algorithm to segment your entire customer base. It uses the data Shopify has already collected for you.

Eric Davis

Use cohorts to find out who the best customers are in your Shopify store

Repeat Customer Insights will automatically group your customers into cohorts based on when they first purchased. This will let you see how the date customers bought would impact their behavior.

Install Repeat Customer Insights for Shopify

This originally appeared on the LittleStream Software Blog and is made available here to cast a wider net of discovery.
How Shopify’s Starter Plan Helped Steve The Bartender With His Book Launch

How Shopify’s Starter Plan Helped Steve The Bartender With His Book Launch

How Do Ecommerce Customers Make Their Decisions To Shop Online

How Do Ecommerce Customers Make Their Decisions To Shop Online


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.

You May Also Like
payday loans loans for bad credit
where can i buy clomid buy clomid