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RFM Customer Segmentation for D2C — Sheets Template

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What Is RFM Analysis?

RFM stands for:

  • Recency — How recently did the customer purchase? (Last week vs 6 months ago)
  • Frequency — How often do they purchase? (Once vs 5 times)
  • Monetary — How much do they spend? (₹500 total vs ₹15,000 total)

By scoring customers on these three dimensions, you can segment them into groups and tailor your marketing to each group.

The 6 Customer Segments

Segment RFM Profile % of Customers Marketing Strategy
Champions Recent, frequent, high spend 5-10% VIP treatment, early access, referral program
Loyal Customers Frequent, good spend 10-15% Loyalty rewards, cross-sell, upsell
Potential Loyalists Recent, moderate frequency 15-20% Nurture to increase frequency. Second purchase incentive.
At-Risk Used to buy frequently, not recently 10-15% Win-back campaign. ‘We miss you’ + discount.
Can’t Lose Them High spend historically, inactive now 5-10% Aggressive win-back. Personal outreach from founder.
Lost Long time ago, infrequent, low spend 30-40% Low-priority. Occasional re-engagement email only.

Step-by-Step: RFM in Google Sheets

Step 1: Export Customer Data from Shopify

  • Go to Shopify Admin → Customers → Export all customers
  • You need: customer email, last order date, total orders, total spent
  • Open in Google Sheets

Step 2: Score Recency (1-5)

  • Sort by last order date
  • Divide into 5 equal groups (quintiles)
  • Score 5 = most recent (ordered in last 30 days)
  • Score 1 = least recent (ordered 6+ months ago)

Step 3: Score Frequency (1-5)

  • Sort by total orders
  • Divide into 5 equal groups
  • Score 5 = highest frequency (5+ orders)
  • Score 1 = lowest frequency (1 order)

Step 4: Score Monetary (1-5)

  • Sort by total spent
  • Divide into 5 equal groups
  • Score 5 = highest spend (top 20%)
  • Score 1 = lowest spend (bottom 20%)

Step 5: Combine Scores and Segment

  • Concatenate R, F, M scores: a customer with R=5, F=4, M=5 is ‘545’
  • Map to segments using the table above
  • Champions: scores like 555, 545, 554
  • Lost: scores like 111, 112, 121

What to Do With Each Segment

Champions (5-10% of customers, 25-40% of revenue)

  • Send personal thank you from the founder
  • Early access to new products (before anyone else)
  • Exclusive WhatsApp group for feedback and previews
  • Referral program with meaningful incentives
  • NEVER send discount offers to champions — they buy at full price

At-Risk Customers (10-15%, declining engagement)

  • Win-back email sequence: ‘We noticed you haven’t shopped with us recently’
  • Offer 15-20% ‘come back’ discount
  • Show them what’s new since their last purchase
  • WhatsApp message from a real person (not automated) for high-value at-risk customers

Lost Customers (30-40%, long inactive)

  • Low-effort re-engagement: quarterly email with best-sellers
  • Don’t spend heavily on win-back for this segment
  • Clean from active email list after 6 months of no engagement (improves deliverability)

Need Help With Customer Segmentation?

At Growww Tech, we implement customer segmentation and retention strategies for D2C brands. Let’s open up your customer data.

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