RFM analysis
RFM analysis scores each customer on how recently they bought (Recency), how often they buy (Frequency) and how much they spend (Monetary), then groups them into actionable segments.
Typical segments that fall out of RFM: champions (recent, frequent, high spend), at-risk regulars (frequent historically, not recent), and one-time big spenders.
RFM matters because the message should differ by segment. Champions need recognition, not discounts. At-risk regulars need a reason to return now. Sending everyone the same 10% coupon discounts the customers who would have paid full price.
Track this without a spreadsheet
OrdrPro Loyalty identifies customers at billing, so metrics like this update on their own — with or without our POS.