Your best 20% of customers often generate 80% of profit.
Most founders market to everyone, wasting money on unprofitable segments. You'll learn RFM analysis (Recency, Frequency, Monetary — which customers buy most often and spend most?), cohort analysis (which acquisition channel brings the best customers?), and how to allocate marketing spend only to segments that are profitable. You'll discover that your best customers are worth 10-20x what your worst customers are worth.
Customer segmentation divides your customers into groups with similar characteristics. It makes marketing more relevant and operations more efficient.
3 min read · Intermediate
RFM analysis segments customers by Recency, Frequency, and Monetary value to identify your best customers and those at risk of churning.
4 min read · Beginner
Part of this AskBiz Academy learning path.
AskBiz Academy
CLV is the total revenue you expect from a customer over their entire relationship with you. It changes everything about how you think about acquisition costs.
4 min read · Intermediate
Customer acquisition cost (CAC) is the total sales and marketing spend needed to win one new customer. Pair it with lifetime value to assess whether your growth is commercially sustainable.
5 min read · Beginner
AOV is the average amount customers spend per transaction. Increasing it is one of the highest-leverage moves in eCommerce.
3 min read · Beginner
Churn rate measures how fast you are losing customers or revenue. It is one of the most important — and most often ignored — metrics for any subscription business.
5 min read · Beginner
Follow this learning path to master customer segmentation: find your best customers.
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