Use Your Low-Quality Customers To Better Understand Your Loyal Customers


The beauty of using RFM for customer analysis is that it segments all of your customers. Even the ones with low-quality behavior.

These are the customers who only bought once, spent a tiny amount with their order, or ordered so long ago they forgot about you. They’re unlikely to ever buy again so you can mostly ignore them with your marketing.

Their behavior (and lack of behavior) helps the RFM model understand what good, loyal customers are.

It’s like how you don’t realize how dark your house is until you walk outside on a sunny day. The contrast between inside light and natural light helps define both.

Similarly, low-quality customers help define loyal customers.

One big thing to remember though, just because RFM creates a segment for these low-quality customers doesn’t mean you have to market to them. You absolutely shouldn’t invest resources in reaching them, especially when they are deep in the defection territory.

Ignore low-quality customers and focus your resources on the better customers who will produce a return for you. That’s the whole point of customer segmenting.

Repeat Customer Insights uses RFM to automatically analyze your Shopify customers. With over 150 segments applied, it gives your store the analytics power of the big stores but without requiring a data scientist on staff.

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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