Customer Analysis

Customer Segments

RFM segmentation analysis of 6,605 customers

RFM Scoring Methodology
How customers are segmented

Each customer receives a score (1-5) on three dimensions:

Recency (R)

How recently did they purchase? Higher = more recent

Frequency (F)

How often do they buy? Higher = more frequent

Monetary (M)

How much do they spend? Higher = more valuable

Segment Distribution
Customer counts and revenue contribution
Champions(959 customers)
70.8% of revenue

R≥4, F≥4, M≥4 — Best customers, highest value

Loyal(478 customers)
15.2% of revenue

R≥4, F≥3, M≥3 — Consistent purchasers

At Risk(1,215 customers)
8.9% of revenue

R≤2, F≥3, M≥3 — Declining engagement

New(449 customers)
3.1% of revenue

Recent first purchase — Need nurturing

Lost(3,504 customers)
2.0% of revenue

R≤2, F≤2 — Long-term inactive

The Champions Effect

959 Champions generate 70.8% of all revenue.

This extreme concentration means protecting Champions is existential. Losing even 10% of Champions would be catastrophic.

Implication:

Every customer touchpoint with a Champion should be treated as a retention moment. Champions should never feel ignored or undervalued.

The Lost Majority

5,504 customers (83.3%) are no longer active.

The "Lost" segment alone contains 3,504 customers. These are customers who once bought from Inveragro and stopped.

The question is not "why didn't we get more customers?"

It's "why did we lose the ones we had?"