Magento 2 Recency, Frequency, Monetary Report
Magento 2 Recency, Frequency, Monetary Report or RFM analysis is used for segmenting customers into particular groups, in order to develop personalized tactics and strategies towards each of the groups.
What is Magento RFM Model and How to Use It?
According to RFM model, customer segmentation is executed basing on three following variables:
- Recency: the last time a customer made a purchase;
- Frequency: the regularity of making orders on your site;
- Revenue: the money spent by a customer in a specific period of time.
Performing RFM analysis with Store Manager for Magento, you can rank clients according to each of these three variables at once and get three separate diagrams displaying recency, frequency and monetary statistics correspondingly. Each of the report segments contains its own score table. Therefore, those customers whose purchases appeared most recent, with highest frequency and brought you the biggest profit, will get the highest scores.
It is quite obvious, that clients who spent a big amount of money but made a purchase only once, may require absolutely different approach, than the ones who make orders regularly but buy products with less price.
How to Create Magento RFM Report via Store Manager?
- Open 'General Reports' tab on the main toolbar and select necessary Magento store view from the drop-down on the right.
- Double-click on 'Recency, Frequency, Monetary' report type.
Let's check the content of the report. So, we got four sections here. First page displays general Magento order statistics, namely 'Order Date Range', 'Order Count Range' and 'Revenue Range'. In the lower part of the page you can find the list of customers with their recency, frequency and monetary scores, and also last order dates, order counts and revenue.
Three other pages show detailed analysis of orders according to each of the above mentioned parameters.
The diagram contains two variables - 'Customers Count Range' and 'Orders Date Range'. You can determine how many clients made purchases in a particular period of time.
You have a table containing values and their scores. The highest score corresponds to the date range with highest order recency.
Frequency graph variables are 'Customers Count Range' and 'Orders Count Range'. It allows to figure out how many customers made a particular number of orders. The highest score corresponds to the highest order frequency.
Revenue graph contains 'Customer Count Range' and 'Revenue Range'. So, you can determine the number of customers who spent the biggest amount of money and got the highest score.
The received results can be used for personalizing shopping experience and preparing tactical actions towards specific customer groups. For instance, you might reward your most loyal clients or offer up-sells to those who spent less but make regular purchases or make some discounts for customers who are going to leave the loyal customers group etc.
Store Manager for Magento allows to perform an ultimate customers analysis taking into consideration every nuance of their behavior. Besides RFM report, you can generate Latency Matrix report, One-time Buyers report and reports displaying your best sellers and best viewed products etc.