How to use RFM groups for targeted advertising

You will learn

Learn how to improve your customer retention strategy with RFM segmentation by re-engaging customers at risk of churning. By analyzing Recency, Frequency, and Monetary metrics, you can identify customers who may be drifting away from your brand. You can create targeted ad campaigns designed to re-engage these profiles to maintain their interest and loyalty to your brand.

Before you begin

Your account needs enough purchase data to calculate RFM groups before you can use these examples. Check the RFM report requirements if Current RFM group is unavailable.

For the Recent browsers example, set up onsite tracking so Klaviyo can record Active on Site events for identified visitors.

Identify profiles for targeted advertising

RFM segments can be used to identify profiles that are good candidates for targeted advertising. Use these steps to create either example below:

1. Navigate to Lists & segments, then select Create > Segment.
2. Name your segment in the builder or, if a Create segment panel appears, enter the name there and click Create segment to open the builder.
3. Add the conditions from one of the examples below, then click Create segment in the segment builder to save it.

Recent browsers

Create the following segment of profiles in the Needs attention or At risk RFM group that have recently browsed your website.

• Properties about someone > Current RFM group equals Needs attention
  OR
• Properties about someone > Current RFM group equals At risk
  AND
• What someone has done (or not done) > Person has Active on Site at least once in the last 90 days

After creating this segment, you can sync the audience to your advertising platform to re-engage customers with targeted advertising before they lapse to the Inactive RFM group.

No recent email opens

Create the following segment of profiles in the Needs attention or At risk RFM group with no recorded email opens in the last 30 days. This does not confirm that they received an email during that period.

• Properties about someone > Current RFM group equals Needs attention
  OR
• Properties about someone > Current RFM group equals At risk
  AND
• What someone has done (or not done) > Person has Opened Email 0 times in the last 30 days

After creating this segment, you can sync the audience to your advertising platform to re-engage with recent offers or updates related to your brand.

Sync a segment to your advertising platform

Before syncing, connect your advertising platform using the guide for Meta Ads, Google Ads, or Pinterest Audiences. Each guide covers setup and audience requirements.

Owners, Admins, and Managers can manage audience syncs.

1. In Lists & segments, open the 3-dot menu beside your segment and select Linked integrations.
2. Set your advertising platform’s toggle to Active, then select the audience you want to sync with.
3. Click Save to save the audience sync settings.

In your advertising platform, use the synced audience to target your ad campaign.

Outcome

You’ll be able to use these audiences in advertising platforms (e.g., Meta or Google Ads) to re-engage customers and nurture your relationship with them.

Additional resources