• Explore. Learn. Thrive. Fastlane Media Network

  • ecommerceFastlane
  • PODFastlane
  • SEOfastlane
  • AdvisorFastlane
  • LifeFastlane

Using Customer Grades To Define Valuable Customer Behavior

using-customer-grades-to-define-valuable-customer-behavior
Using Customer Grades To Define Valuable Customer Behavior

Customer grading is one customer analysis that Repeat Customer Insights includes in its suite.

This is where each customer is graded with a letter grade based on their behavior:

  • Grade A customers are your best scoring customers. These will include your VIP, loyal, and fans that you should cultivate.
  • Grade B customers didn't make the cut for Grade A but are still above-average. They could include upcoming great customers that just need a nudge.
  • Grade C customers are your average customers. They might be new customers without a lot of behavior, prior great customers who have since changed their buying behavior, or customers with basic buying behavior.
  • Grade D customers are below-average customers. They might fall in here due to buying less frequently, a long time ago, or aren't showing the customer behavior of your better customers.
  • Grade F customers are your weakest customers, behavior-wise. They might include defected customers or one-time buyers.

The benefit of this grading over something like RFM is how simple it is to understand. Only five segments. Customers gradually improve from F to A with good behavior. They decay from A to F with bad or no behavior.

It's also easy to compare customers against each other. An A customer is objectively better than a B customer.

Eric Davis

When are your best customers defecting?

Are your best customers defecting? Use Repeat Customer Insights to find out where in their lifecycle you're losing them and what you can do to win them back.

Install Repeat Customer Insights for Shopify

Topics: Customer grading Customer segmenting

Would you like a daily tip about Shopify?

Each tip includes a way to improve your store: customer analysis, analytics, customer acquisition, CRO… plus plenty of puns and amazing alliterations.

This originally appeared on the LittleStream Software Blog and is made available here to cast a wider net of discovery.
Prev
CBD Advertising: 6 Ways To Promote Your CBD Brand
cbd-advertising:-6-ways-to-promote-your-cbd-brand

CBD Advertising: 6 Ways To Promote Your CBD Brand

Next
Strategic Ecommerce Operations: Driving Efficiency For Your Business
strategic-ecommerce-operations:-driving-efficiency-for-your-business

Strategic Ecommerce Operations: Driving Efficiency For Your Business

You May Also Like