How to personalize product recommendations by RFM group

You will learn 

Learn how to use RFM (recency, frequency, and monetary) properties to target customers with product recommendations.

Create RFM segments 

Creating segments of customers based on their RFM group allows you to easily target groups with different sets of products that are most relevant to their shopping patterns. 

Once created, these segments can be used to send personalized campaigns to different groups, and trigger flows when a customer enters a particular RFM group. For example, you may want to include discounted products in emails going to your current At Risk or Inactive customers, or use cross-selling content with customers in your Recent group. 

To create a segment based on RFM group use the following condition, with your desired group set as the value (i.e., Champions in the example below).

• Properties about someone > Current RFM group > equals > RFM group name 

Some additional use cases for segments based on RFM group include:

• Targeting Loyal and Champion customers to provide reviews on items.
• Targeting Loyal or Recent customers with new products or product offers to cross-sell and up-sell.
• Targeting Recent customers with a subscription so that they become a Champion or Loyal.
• Targeting Inactive or At Risk customers with winback campaigns. 
• Targeting Inactive or At Risk customers with lower cost items.
• Offering exclusive or time-limited discounts to Inactive or At Risk customers.

Using show/hide logic based on RFM group

You can dynamically show different content in your emails based on a profile’s RFM group using Klaviyo’s show/hide logic in templates. This feature allows you to personalize your email content based on information you have gathered about your subscribers, so each recipient has a highly relevant marketing experience.

Show/hide conditions based on profile data (i.e., profile or custom properties) can be used in any Klaviyo email. In this case, you can use the Current RFM group or Previous RFM group properties to show product recommendations based on the recipient’s RFM group. 

For example, to the Champions or Loyal customers groups, consider sending higher value items. Meanwhile, for customers in the Inactive or At Risk groups, send lower-cost products or best sellers. Alternatively, you can send profiles in the Loyal or Champions groups early access or new products to see if they perform better with them. 

The condition you need to show a piece of content to a specific RFM group is Current RFM group > equals > Champions. 

In this example, Current RFM group is the property being referenced in the condition, and the property value is Champions. You can replace Champions with the RFM group you are targeting. 

Similarly, to hide a piece of content for a specific RFM group, use the condition Current RFM group > does not equal > Champions. 

This condition only displays content to recipients that are not in the Champions RFM group. 

Send personalized campaigns with show/hide logic

When sending campaigns in Klaviyo, you can use show/hide logic in Klaviyo to include personalized product recommendations based on a profile’s RFM group (i,e., Current RFM group or Previous RFM group). 

You can include multiple products in your email, and create the show/hide rules so profiles in different groups see the appropriate product in their emails.

Some examples include:

• Targeting Loyal or Recent customers with new products or product offers to cross-sell and up-sell.
• Targeting Recent customers with a subscription so that they become a Champion or Loyal.
• Targeting customers in the Needs Attention or At risk groups with lower cost items they are more likely to purchase. 
• Targeting Champions or Loyal customers groups with higher value items.

Send personalized flows

You can also use RFM properties to send more relevant content with your flows. In addition to dynamically displaying content using show/hide logic, you can create conditional splits based on a profile’s RFM group to send different group members down different flow paths.

You can include different product recommendations or other content in each path’s flow email. When profiles go through the flow, they will go down the relevant path based on their RFM group.

In flows, you can try to cross-sell or up-sell specific products based on the details of the action they took to enter a flow and their RFM group. 

For example, if you have a post-purchase flow with conditional splits based on RFM group, you can target Loyal or Champions with a product review request. Meanwhile with customers in the Recent group, you can target them with new products that are complementary to their purchase. 

Additional examples of using RFM groups in flows include:

• Creating a conditional split based on if a person is:
• A frequent purchaser (Champions or Loyal)
• Or if they are a sometimes or never purchaser (Recent, Needs Attention, Inactive, or At Risk).
• Creating a conditional split based on a customer group’s recent browsing behaviors. 
• For example, those in Champions, Loyal, or Recent may get a regular browse abandonment message, while those in Needs Attention, Inactive, or At Risk receive a browse abandonment message with an additional discount.
• Create a flow for those in the Champions, Loyal, or Recent group highlighting new products or launches.
• Encourage those in the Champions, Loyal, or Recent group to leave reviews of their products.

Additional resources

Understanding scoring and customer groups in the recency, frequency, and monetary analysis (RFM) report

How to create a retention flow triggered off of RFM groups and customer behavior changes

How to strategically use RFM properties in campaigns and flows