What’s hidden from retailers’

eyesight
Ignaz
Semmelweis
“I think The
there is a world
mortality marketwomen
rate among for in the
maybe 5 section of the maternity ward where
computers.”
Semmelweis practiced was 1 in 10.
Thomas Watson, chairman of IBM, 1943
“I think there is
A second a world
section market
of the for ward
maternity
maybehad5a computers.”
mortality rate of 1 in 50, much better
than the rate in Semmelweis’ section.
Thomas Watson, chairman of IBM, 1943
“I think there
During is a world
a four-month market
leave for hospital,
to another
something
maybe intriguing happened. The mortality
5 computers.”
rate in his section had fallen significantly
Thomas Watson, chairman of IBM, 1943
 Semmelweis started to investigate the
“I thinkresearch
there isdone by themarket
a world doctorsfor
on cadavers.
maybe 5 computers.”
Thomas Watson, chairman of IBM, 1943
 This was the origin of germ theory.
“Particles’ from cadavers and other diseased
patients
“I think there were being transmitted
is a world market forto healthy
maybepatients on the hands of the physicians.”
5 computers.”
Thomas Watson, chairman of IBM, 1943
 As a result, a policy was instituted that required
doctors
“I think there tois wash theirmarket
a world hands thoroughly.
for
The death rate immediately plummeted to 1 in 100
maybe 5 computers.”
Thomas Watson, chairman of IBM, 1943
What if I am the problem?
What if I the management is the
problem?
 e yo u r c u s to me r s ..
If you ignor
You can’t be
too big to fall
They had data since 2009...
The banks have data since 2018...
Source: https://www.omniconvert.com/customer-retention-study
RFM Groups
True Lovers Passionate new guy
Your most frequent buyers, have placed the highest number Have placed their second order, high average order value.
of orders and of the highest value.

Ex-Lovers Platonic friend

Active, have placed a moderate amount of orders or moderate
They used to be True lovers, but have dumped you.
value.
Lover
About to dump you
Active, have placed a good amount of orders or significant value.
Rather inactive; have placed last order more than half a year ago.
Potential lover
Fresh apprentice
Potential to become active customers, have placed more orders
than Flirting. Fresh ones, have just placed their first order.

Flirting Breakup
Have placed more than 3 orders of high value. Inactive, low value spenders.

Depending on the client base one can define fewer or more of the RFM groups exemplified above. For small client bases there’s no need to
have a large number of groups. The idea is to have manageable chunks of people that share a particular behaviour in relation to your website.
RFM Analysis
“Soulmates” customer group is the
smallest but also the most
profitable.
RFM analysis reveals data
anomalies that will allow
eCommerce managers to
understand which are the most
important groups of customers
when they balance the customer
acquisition cost with the margin
they generate.
e
at
lm
Sou
True Lovers
These customers bought:
> Most recently R = 5 F = 5 M = 5
> Most often
> Biggest monetary values

Depending on the client base one can define fewer or more of the RFM groups exemplified above. For small client bases there’s no need to
have a large number of groups. The idea is to have manageable chunks of people that share a particular behaviour in relation to your website.
Ex-lovers
These customers bought:
> A long time ago
> Many times
> Big monetary values R = 1 F = 5 M = 5

Depending on the client base one can define fewer or more of the RFM groups exemplified above. For small client bases there’s no need to
have a large number of groups. The idea is to have manageable chunks of people that share a particular behaviour in relation to your website.
NPS by product category

Monitoring NPS for each product

category allows marketers and CX
to work closely with merchandising
and acquisition departments so
that they fix potential issues with
various product categories.
 Customer Experience Optimization Flow
1 3 5 7

Qualitative Buying
Ongoing Segemented
CoCA Cost of Customer
Acquisition Research Patterns Qualitative Surveys
Net Promoter
Score

Insights Products/Brands
2 8
Anomalies Customer Retention
Customer Reasons &
Buying frictions Strategy
Segmentation City/Location

4 6
9
Insights Ideal Customer ICP
Which are the most Profile (ICP) Insights Ongoing
valuable customers and Which are the most Personalization
their margin contribution? important customers - value Channels:
& attributes SMS/Web/Apps/email/Ads/
socio-demographics
Improve Ad spending Direct Mailing
Improve eMails
Improve website
 Customer
Segmentation Omnichannel
Personalization

Buying
Patterns &
Anomalies

Customer
Health Score

Customer
Customer Satisfaction
Retention
In the last 6 years, I have learned a lot about
digital customer experience optimization
 Thank you!

Valentin Radu
Linkedin.com/in/valentinradu
valentin.radu@omniconvert.com