Long before 2020, the growing popularity of online shopping resulted in the closure of many traditional brick and mortar retail stores across the globe—a trend that has only accelerated in the world of social distancing. This year, brick and mortar retailers are taking a particularly hard hit, forcing brands to adjust their marketing solutions to fit the “new normal.” As business owners re-examine their marketing practices and tactics, many are delving deeper into their digital transformation as a means of improving reach and revenue.
With such a significant shift in consumer behavior, brands must be increasingly eager to meet a wide array of expectations. Today, consumers seek unique and relevant content experiences, along with more authentic, meaningful digital interactions. The solution for many is adopting personalized marketing technology and advanced algorithm coordination services, like Oracle Responsys’ RFM. RFM scoring and segmentation help to improve engagement and sales potential by identifying unique marketing opportunities for each and every customer.
The 411 on RFM
Oracle Responsys’ RFM, or Recency, Frequency, Monetary, is a first-of-its-kind proprietary machine-learning segmentation and analysis scoring algorithm. This new take on the traditional RFM analysis utilizes opens, clicks, conversions, and sent activity across various channels. This data is then ranked and scored across weighted behaviors to create a persona set of your customers. These personas include Champions, New, Promising, Can't Lose, At Risk, and Lost.
Once your customers are divided into their rightful personas, you are ready to create hyper-personalized content and interactions accordingly. For example, your best customers with the strongest rate of high-value engagement, are known as Champions. You may find that your Champion customers need to be treated with exclusive deals and privileges that make them feel a bit more special. Lost customers, on the other hand, may need to be targeted on social networks in an effort to help them re-engage.
Testing is a critical part of successfully using RFM. Shaw/Scott can assist in testing, whether you wish to test RFM against traditional targeting segments or would rather test offers and dynamic content. When it comes to ad-hoc campaigns, it would be best to conduct an A/B test of RFM Personas against your regular targeting practices. Another option is to test Triggers by splitting RFM micro segments out of their own Program path. When testing offers and dynamic content, we highly suggest amending current standard approaches to offers-by segment to allow for testing RFM criteria. You can also bolster MVT efforts with RFM criteria and utilize RFM data to personalize dynamic content or offers. However you’d like to go about testing, Shaw/Scott is ready to provide thoughtful guidance on test practices and assistance in implementation.
Lean On Shaw/Scott
Say you not only want to meet consumer expectations, but exceed them. This is where our Shaw/Scott team shines. Our marketing experts are here to offer comprehensive analysis of your business needs and ways to best customize your use of RFM accordingly. We’re also happy to provide guidance to website admins and coordinate with Oracle Support on your behalf. More importantly, we’re here to help adjust your marketing solutions to keep you on track in an ever-changing world. Use our easy contact form to get in touch today!