We work beyond RFM (Recency, Frequency and Monetary value) to help clients create segmentation strategies designed to maximise lifetime customer value. We used principles and learnings from working with Tesco’s Clubcard and collaborating with global data leader Dunn Humby. Of course RFM matters however so too do attitudinal characteristics that can bind groups together. Indeed, a break-through segmentation project was for Tesco’s £1.4bn F&F clothing brand where we did both:

Created five spend and frequency segments (From hight value and frequency to lowest value and frequency)

Discovered the common qualitative wants and needs for each segment

Identified the realistic headroom for each segment

Communicated and incentivised each group to drive incremental share – for example lowest frequency and spend needed quality and desirability reassurance.