Marsello's RFM analysis helps you target customers based on recency, frequency, and spend, optimizing engagement and retention.
What is customer segmentation?
Customer segmentation divides customers into groups for more targeted and effective marketing. Common types include:
Demographic segmentation: Groups customers by age, gender, life stage, etc.
Geographic segmentation: Segments based on location, such as country, state, or city.
Behavioral segmentation: Uses purchase data to group customers by shopping activity, like last purchase date.
Marsello leverages behavioral segmentation with RFM analysis to help retailers identify valuable customers and create effective marketing strategies.
Why customer segmentation is important?
Every customer database is diverse, with shoppers displaying unique purchasing behaviors. Segmentation helps retailers send the right message at the right time to the right customers.
How Segmentation Helps:
✅ Understand Your Business Better – Identify your best customers, spot those at risk of leaving, and uncover growth opportunities.
✅ Boost Customer Loyalty – Nurture loyal customers and repeat buyers with personalized experiences, timely emails, and exclusive promotions to strengthen relationships.
✅ Enhance Email Marketing – Targeted emails increase engagement, improve open and click-through rates, and drive higher conversions while reducing unsubscribes.
✅ Reduce Costs & Improve ROI – Focus marketing efforts on high-value customers. Targeted campaigns are more effective, lowering costs and increasing returns.
How are the customer segments calculated?
Marsello uses RFM analysis to segment your customers based on three key factors:
Recency – How recently a customer made a purchase.
Frequency – How often they purchase.
Monetary – How much they’ve spent in total.
Customers are grouped into six segments, ranging from Best Customers (loyal and high spenders) to Lost Customers (unlikely to return).
When you connect Marsello to your eCommerce or POS system, your customer database and order history (last purchase date, total spend, and number of orders) sync automatically. Customer RFM segments are recalculated daily, and a customer’s individual segment updates immediately when they place a new order.
Customer Segments Overview (Most → Least Engaged)
Segment | Description | Typical Behavior | Recommended Actions |
Best | Most valuable customers — highly engaged, loyal, and highest lifetime value. | Purchase frequently within your average cycle; highest spend overall. | Offer VIP perks, personal recognition, and advocacy opportunities. |
Loyal | Reliable repeat buyers with above-average spend. | Purchased within average cycle but spent slightly less than Best customers. | Provide ongoing rewards, exclusive previews, and community events. |
Promising | Customers with strong potential to become Loyal or Best. | Purchased within recent average cycle, 2+ orders, average spend. | Share brand story, follow up after purchases, encourage social engagement. |
New | Recently acquired first-time buyers. | One purchase within average cycle; new to your database. | Create strong onboarding, memorable first experiences, and early engagement. |
Window Shoppers (Potential) | Has a store account but has never made an order. | Browses but has not purchased. | Encourage first purchase with welcome offers, personalized recommendations, and onboarding sequences. |
At Risk | Declining engagement, risk of churn. | No purchases in 2+ average cycles. | Send timely win-back campaigns, targeted offers, and relevant recommendations. |
Cold (formerly Lost) | Inactive customers, high churn risk. | No purchases in 4+ average cycles. | Use targeted reactivation campaigns, exclusive deals, or new product launches. |
📝 Note: These segments are mutually exclusive, meaning that each customer can only be in one segment at one time.
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