Automatic segmentation: Build experiences based on real behavior with RFM

Think for a moment about the people who are important to you, such as your family, friends, or co-workers. You probably don't interact with them in the same way. The expectations we have for each group are also usually different.

The same goes for our customers. Maintaining a successful relationship with the different people that interact with our brand requires a deep understanding of their needs and preferences. This helps us to communicate effectively and meet their expectations.

84% of customers say it is very important for them to be treated as a person and not as just another number.

Let's start by defining our context. We live in an age of instant gratification. We are users who are always connected and seek information whenever we need it. 

This produces a large number of challenges, such as trying to build relationships with millions of users when 84% of customers say it is very important for them to be treated as a person and not as just another number.

However, each of these challenges is a potential opportunity and, in the midst of this, we have to make sure that we communicate our solutions in the right language for the stage each client is in. 

Customer lifecycle management focuses on just that. We must talk to users according to the stage they are in their lifecycle. Good lifecycle management has a direct impact on the expected lifetime value of each customer and, therefore, on the utility of the company. 

This is where many of us get stuck. It can be confusing to choose between psychographic, geographic, social, demographic and behavioral segmentation, to name a few. Additional to this, achieving a 360 vision of customers is often a slow, costly and culturally resistant process. 

We recommend starting where we can make the greatest impact quickly. Data has taught us that intention says much more than identity. Our actions tend to speak louder than our words. Everything we do, any search, visit to a page or video we watch says something about what we want to achieve.