What is RFM analysis?
Moviegoer Value Segments is based on the concept of RFM analysis. RFM analysis is a marketing technique used to segment moviegoers based on:
- Recency – how recently they purchased
- Frequency – how often they purchase
- Monetary – how much they spend
It helps identify your best moviegoers, those most at risk of churning or becoming inactive and highlight the amount of effort and value to devote to each value segment. You can use this information to send them more personalised / highly-targeted campaigns.
What are the key benefits of using Moviegoer Value Segments?
- Increased retention and activity – highlight ‘at risk’, valuable moviegoers and stage a marketing intervention
- Automated RFM analysis – view segments based on RFM analysis without having to perform complex calculations
- Richer personalisation – combine RFM analysis with our intelligent propensity algorithm to craft highly targeted marketing campaigns
- Improved return on investment – consider offers and incentives based on the value and average spend of each value segment, allowing you to offer the least valuable incentive to motivate the desired behaviour
What potential marketing actions can I apply for each Moviegoer Value Segment?
| Segment | RFM Segment | Actionable Tip |
|---|---|---|
| Loyal Moviegoers | High Recency, High Frequency, High Monetary | Money-can’t-buy opportunities, last chance to see campaigns, special screening invites, ask for reviews, reward them as they will promote your brand |
| Promising | High Recency, High Frequency, Low Monetary | Concession offers, upgrades to premium cinema experiences |
| Potentially Loyal | High Recency, Low Frequency, High Monetary | Recommend upcoming movies, double points offer, promote in-house / premium experiences, send concession offer to encourage another purchase |
| Recent Customers | High Recency, Low Frequency, Low Monetary | Bounce-back campaign |
| At Risk | Low Recency, High Frequency, High Monetary | ‘We miss you’ campaign with recommended next movie to watch, low-cost offer, offer renewals or discounted premium experiences |
| About To Sleep | Low Recency, High Frequency, Low Monetary | Send personalized emails to reconnect and engage with them, recommend popular movies or renewals at discount |
| Needs Attention | Low Recency, Low Frequency, High Monetary | Special family pricing or concession upgrades, send survey and ask for feedback |
| About To Be Lost | Low Recency, Low Frequency, Low Monetary | Newsletter with Dynamic Content, end-of-life or off-peak pricing campaign |
How do the RFM values get calculated?
After we compute the median for the RFM values of the selected active moviegoers:
- ‘High’ means that it is better than the population median
- ‘Low’ means that it’s worse than the population median
For example, if the median for Recency is 40 days, and a moviegoer has been to the cinema in the last 30 days, then the recency for that moviegoer will be considered as ‘High’. The median for each RFM value is shown when you hover on the tool tip of each RFM column header.
How frequent does the data get updated?
The data on the Moviegoer Value Segments is updated on a daily basis.