RFM Customer Segments: Ten Tiers That Show Who to Message and Who to Thank
RFM customer segments sort your regulars by how recently they visited, how often they come and how much they spend. MSTRMND turns that into ten tiers on Grow and Business. This guide explains each tier and what to do about it.
Use the tiers every week
- Thank Champions and Loyal
- Nudge Going quiet and At risk
- Reach out personally to Can’t lose them
- Leave Dormant and Inactive alone
Ten minutes a week is enough.
What are RFM customer segments?
RFM stands for recency, frequency and monetary value. It is a way of describing each customer with three questions: when did they last visit, how often do they visit and how much do they spend. Combine the answers and you get a group, such as a loyal regular or a customer who has gone quiet, without guessing.
The value is not in the maths. It is in having a list that says who to thank, who to nudge and who to leave alone. Most venues have no such list, so they send the same message to everyone, which is the quickest way to annoy the customers who matter most and ignore the ones who need a reminder.
The three questions behind each tier
Recency
How long since the last visit. It is the strongest signal of whether a customer is still active. A visit last week says one thing about a customer. A visit last season says another.
Frequency
How often they come. A customer who visits weekly is a different relationship from one who visits twice a year, even if the last visit was recent.
Monetary value
How much they spend over time. It separates a regular who buys a coffee from one who brings a group to dinner. It is not a measure of worth, but it does tell you where a lapsed customer would be most missed.
Segments by plan
Starter segments by hand. Grow adds automatic tiers. Business adds custom segments.
| Plan | Segments | What you get |
|---|---|---|
| Starter | Manual only | You build lists yourself |
| Grow | Auto-segments (RFM) | Ten tiers from recency, frequency and spend |
| Business | Auto-segments and custom API-driven segments | The ten tiers, plus your own rules |
What the ten tiers mean in practice
MSTRMND groups customers into ten tiers. They fall into four that describe customers coming back and six that describe customers drifting or gone.
- Just joined: added the card recently. Send a welcome and explain the reward.
- Promising: a few visits in. Reinforce the habit with a progress message.
- Champions: your best, recent and frequent. Thank them and give them a reason to stay.
- Loyal: steady regulars. Keep them informed and reward milestones.
- Needs attention: slowing down. A reminder with their balance.
- Going quiet: visits are spreading out. A reminder, then a small reason.
- At risk: used to come often, now absent. A specific reason to return.
- Can’t lose them: high spenders who have lapsed. A personal message.
- Dormant: absent for a long while. One honest last word.
- Inactive: no recent activity. Leave alone unless they return.
Ten tiers in two groups
Four tiers describe customers coming back. Six describe customers drifting or gone.
Bars show the number of tiers in each group (4 and 6), not customers. Source: MSTRMND customer tiers.
How to use the tiers week to week
The tiers are a weekly habit, not a one-off report. A short routine is enough.
- Look at Champions and Loyal first. Thank them. A regular who is recognised is hard to lose.
- Then check Going quiet and At risk. These are the tiers where a message does the most good.
- Look at Can’t lose them. A short, personal message from the owner often beats any offer.
- Leave Dormant and Inactive alone unless you have something new to say.
If you use the win-back sequence from our guide to lapsed customers, the tiers choose who goes into it. The sequence itself is three messages and then a rest.
Which plan includes RFM customer segments?
Grow includes auto-segments based on recency, frequency and spend. Business includes the same, plus custom segments driven by the API, which suit venues with their own rules, such as customers who buy a certain product. Starter has manual segments only, which means building a list by hand.
If you have fewer than 100 customers on one location, manual segments may be enough. Past a few hundred, hand-sorting stops being realistic and the automatic tiers earn their price.
What the tiers will not do
A tier describes behaviour, not intent. A customer in Dormant may have moved away, and a customer in Going quiet may be on holiday. The tiers tell you where to look, not what to conclude. Use them to choose a message, and let the customer’s reply tell you the rest.
Frequently asked questions
What does RFM stand for?
Recency, frequency and monetary value: when a customer last visited, how often they visit and how much they spend. Combined, the three describe how a customer behaves. MSTRMND turns the combination into ten tiers, from Just joined to Inactive, so you can see who to thank, who to nudge and who to leave alone, without building the list yourself.
Which plan includes RFM customer segments?
Grow and Business. Grow, at £69 a month billed annually, includes automatic segments from recency, frequency and spend. Business adds custom segments driven by the API. Starter has manual segments only, which means building lists by hand. Past a few hundred customers, the automatic tiers are much easier to work with.
How often should I look at the tiers?
Weekly is enough for most venues. Start with Champions and Loyal to thank them, then Going quiet and At risk to nudge them. Check Can’t lose them for a personal message. Leave Dormant and Inactive alone unless you have something new to say. Ten minutes a week keeps the list useful.
Can I create my own segments?
Yes, on the Business plan. Custom segments are driven by the API, which suits venues with their own rules, such as customers who buy a certain product or visit a particular location. Grow includes the ten automatic tiers. Starter lets you build manual lists, which is workable for a short customer list.
Key takeaways
- RFM customer segments sort customers by recency, frequency and spend.
- MSTRMND turns them into ten tiers, from Just joined to Inactive, on Grow and Business.
- Four tiers describe customers coming back, and six describe customers drifting or gone.
- Review the tiers weekly: thank Champions, nudge Going quiet and At risk.
- Business adds custom segments driven by the API.