Customer segmentation: 4 groups, 4 campaigns

RFM (recency, frequency, monetary) segmentation is the workhorse of loyalty programs. Properly applied it doesn’t need 20 segments — four is enough. Here’s how to set them up.

VIP (top 10% of members by 90-day spend)

• Goal: keep them loyal, deepen the relationship
• Send: personal-feeling thank-yous, exclusive previews, no discounts
• Avoid: promotional messages — these customers don’t need persuading

Regular (middle 60%)

• Goal: lift frequency
• Send: occasion-based campaigns (birthday, anniversary, weather), new-product launches
• Avoid: too-frequent messaging (more than twice a month)

At-risk (haven’t visited in 30–60 days)

• Goal: re-engage before they churn
• Send: “we miss you” plus a small reward
• Avoid: large discount — devalues the brand

New (joined in last 30 days)

• Goal: lock in the second visit
• Send: warm welcome, easy-redemption offer, profile-completion ask
• Avoid: tier benefits not yet earned

The biggest segmentation mistake isn’t having too few segments — it’s treating them all the same. Different message, different timing, different channel.