Retaining The Best Customers Requires Defining What Makes Them The Best


Some customers you want to lose.

The always-returns customers.

The “I want to talk to your manager” customers.

The discount-required customers.

The your-own-personal-hell ones.

Customer retention isn’t about trying to keep all customers though. It’s about keeping the best customers for your Shopify store. The key is, you get to define what best customers means to you.

Defining that is important though. If you don’t, then everyone’s the best. So no one’s the best. There’s no participation medals with customer segmenting.

Your best customer definition could be as simple as: customers who buy more than once.

Simple, but surprisingly effective.

Or your definition could be complex: customers who spend more than the trailing 12-month AOV, who have bought within 18 months, and have referred or shared our store with one other customer.

My advice, the more complex you make it, the more difficult it is to explain to others and keep track of. Start with something simple and update it as you grow.

  1. <500 customers ordering per year: customers who buy more than once
  2. 500-2,000 per year: customers who buy more than once and have bought within the last 2 years
  3. 2,000+: lean into a basic RFM using Recency and Frequency scores of 4 or 5

Once each of your best customer segments is more than 10,000 customers (somewhere around 30k-50k customers ordering per year), now pull out the full RFM model and consider drilling down into individual score intersections.

Don’t feel you have to graduate out of a level either. You can get great results using a simpler definition even at larger scales. That’s why the customer grading in my app works well with even huge Shopify stores.

Eric Davis

This originally appeared on the LittleStream Software Blog and is made available here to cast a wider net of discovery.
7 Best Welcome Email Examples to Engage Your Customers

7 Best Welcome Email Examples to Engage Your Customers

How To Build A Word Of Mouth Marketing Program

How To Build A Word Of Mouth Marketing Program


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