Segmentation Strategies That Work

Tactics

• Set realistic expectations. It’s said that RFM is an 80-percent solution. Out of the APA project, you’ll uncover some refinements to enhance your current RFM selection criteria. But don’t expect RFM to be replaced; rather, it should remain the backbone of your selection parameters.

• Experiment with different rollup ranges (e.g., $0 to $15). Nothing states that $25, $50 and $75 must be the purchase dollar cutoff points you use, or that all four-time or greater multibuyers should be treated as a single customer group. Identify the ranges most appropriate for your catalog.