- Magnetic Marketing
- Got customers, now what?
Got customers, now what?
Get more value out of your customer list with the RFM Framework.
Welcome to the 26th issue of Always Be Learning. The newsletter that Mr. Beast confirmed as the best newsletter title ever.
If you were forwarded this email, you can subscribe by clicking below:
Friend of the program:
John's helping people create newsletters that will change their life in his course: Newsletter Incubator
In 3 weeks, you'll boost your personal brand, network, career outlook and build an asset that'll serve you for decades to come — even if you're not a "writer".
I took this course a few months ago and highly recommend it to anybody looking to get into the newsletter game. It's the perfect jumping-off point.
Today's Marketing Breakdown:
In this week's issue, I'm going to teach you how to get more value out of your customer email list with the RFM framework.
The RFM framework evaluates your customer list by 3 categories:
R = Recency
F = Frequency
M = Monetary Value
Let's break each of these down:
How recently has your customer made a purchase?
The more recently a customer has purchased, the more likely they will stick around as a customer.
Example: At your business, the likelihood to repurchase might fall off a cliff when someone hasn't ordered in the last 30 days.
Tactic: Trigger automated emails around days 25-29 to "save" the customer before they churn.
How often does your customer make a purchase?
Factors that impact this behavior include:
Type of product
Need for replenishment
The more frequently your customer buys from you, the more likely they will stick around.
Example: Your business is a subscription supplement brand. Each jar provides a 60-day supply. i.e. It's a predictable purchase cycle.
Encourage them to stock up before day 60.
Win them back with discounts after day 60.
How much does your customer spend?
Know the difference between big and little customers.
The more they spend, the more likely you will keep them as customers.
Example: Your top 20% of customers are bringing in 80% of revenue.
Send them loyalty rewards
Provide priority support
Upsell little by little
They are the lifeblood of your business. Keep them happy.
This happy 👇
The RFM framework will help you slice and dice your customer list.
You'll identify which customers are most likely to repeat/churn and what key lifecycle stages you should be communicating with them at.
It's one more tool to have in your customer retention arsenal.
There you have it! 1 marketing tip to help grow your DTC business.
Here’s what else I’m checking out in the DTC marketing world:
Hope this has been helpful!
If you enjoyed it, please forward it along to your marketing friends.
See ya next Thursday,
P.S. Whenever you're ready, there's 1 big way I can help you:
I'm running Cohort 2 of my Email Marketing 101 course from 9/26 - 9/29.
Cohort #1 had a perfect 10/10 Net Promoter Score and that was just the warm-up...
Here's what you can expect: