Overview
Ran an RFM (Recency, Frequency, Monetary) customer segmentation pilot study on Bokkilden.no's customer database, identifying high-value lapsed customers worth reactivating and designing a retargeting and campaign strategy built around the scoring model.
Who This Is For
Online retailers and subscription businesses with large customer databases and generic email marketing. This case is most useful if:
- you send the same newsletters to everyone
- you cannot tell which lapsed customers are worth reactivating
- you want segment-driven campaigns without a major systems investment
- you want a method you can repeat, not a one-off analysis
The Challenge
Bokkilden.no, Norway's largest online bookstore, had a large customer database but marketed to it generically.
It needed to know which lapsed customers were worth the cost of reactivating, and to move from blanket newsletters to segment-driven campaigns without a major systems investment.
Our Approach
We ran a pilot RFM study on a 10% sample of the customer database, roughly 15,000 records, scoring each customer on Recency, Frequency and Monetary value.
- A high-value lapsed segment: 1,537 previously good customers who had lapsed since October 2010, each worth an average of 577 to 2,922 kroner in historical spend.
- Purchase profiling: the segment's behaviour compared with the rest of the base, showing a stronger skew towards non-fiction and course-literature titles.
- A repeatable method: export customer data, clean and score it, combine RFM with product-purchase history into an RFMP model, then re-tag records for targeted email and newsletter campaigns.
- Retargeting strategy: how each segment should be treated across channels.
Impact
1,537 customers worth winning back. A generic newsletter list became a defined, sized and profiled reactivation target, specific enough to build a win-back campaign around.
A method, not a one-off. The scoring and re-tagging process could be repeated on the full database without new systems.
A database treated as one audience hides its most valuable customers. A 10% sample was enough to find them.
Delivered as part of a wider media agency services agreement between Confetti and Bokkilden.no. Any public information referenced here is used for identification and does not imply endorsement.
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