7 March 2023

In collaboration with NedFox, we have developed a new feature so that you can automatically segment loyalty cardholders. This way, you know exactly who your best, most loyal customers are or customers that need extra attention to keep them loyal to your garden centre. RFM segmentation is now available in RetailVista and in Garden Connect's Personal Marketing platform.

Garden centres have asked us to apply a convenient way of segmentation in recent years. Not an odd question, because more and more customer data is available, and it has to be used efficiently.

RFM model

The proven RFM model assumes that customers should be classified based on three factors:

  • R - Recentness of the customer, when was his last visit?
  • F - Frequency of visits, how often does he visit?
  • M - Monetary value, how much does the customer spend?

A score is given for each factor, and the total score ultimately determines which segment the customer enters. An example of RFM-segmentation is for example:

This combines the points for Frequency and Monetary and measures Recentness on the vertical axis. Ideally, your customers score high on the F and M and also on the R: then we consider them loyal, ideal customers in this example.

The beauty of the RFM model is that within RetailVista, you have the freedom to classify the segmentation yourself. If you have a city garden centre with frequent visitors, then you'll want to do the scoring at Frequency differently than if you're a garden centre where people visit a few times a year for a whole day as a day out.

In the end, you then get an overview of customers, their scores and segmentation. As an example:


Setting in RetailVista

The RFM segmentation can be set up in RetailVista, assuming the right modules are activated. Within RetailVista, you can set the point count per factor, after which the segmentation is determined every day for all your customers. This uses the 95-percentile method to filter out outliers from the model.


Offers by RFM segment

Once the segmentation is set, you can link discount deals to these customers. This way, you can create a special offer for your most loyal customers or entice customers you haven't seen in a while to drop by. 

The offers you create for your cardholders can be sent by e-mail, communicated in the shop or automatically appear on your website & in the app. This way, you reach your cardholder in multiple ways.

Sending e-mails via Personal Marketing

Email is an important way to keep in touch with your cardholders, which is why we have integrated RFM segmentation into our Personal Marketing platform.

This integration, therefore, makes it easy to target customers within one or more segments by e-mail. Do you have a good offer? Want to invite your loyal customers to the opening of your Christmas events? Or entice customers who spend a lot but don't come much? You can combine the offers in RetailVista with our Personal Marketing platform to send the right message!

Read more about Personal Marketing: the right email at the right time

Replay: webinar

We recently held a webinar, together with NedFox, on RFM segmentation. You can watch it back here:

RFM segmentation: a better loyalty card

By implementing RFM segmentation, you can use your loyalty card better and more effectively. Once set up, the process is fully automated so you don't have much work to do.

Want to know more? Then get in touch with us or ask your contact at NedFox for more information.

New: RFM segmentation for your loyalty card
Edwin Meijer

This article is written by:

Edwin Meijer

Co-founder & CMO

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