Understanding the Customer Cluster Graphs in Chartsy

In Charsty, customer cluster graphs can help you understand and manage customer behavior!

By focusing on three key variables: Recency (R), Frequency (F), and Monetary value (M), we can effectively segment your customers and offer you insights on them accordingly.

Our Process

1. Recency, Frequency and Monetary values

The analysis is done based on the following variables:

• Recency: Time since the last purchase.

• Frequency: Total number of purchases made.

• Monetary: Total amount spent.

1. Cluster Identification

Customers are grouped into clusters based on their RFM values using clustering algorithms.

Customer Clusters

Depending on your data and your customers’ behavior (their RFM score), they could be categorized into the following clusters:

• Champions

• Loyal

• Potential Loyalists

• New Customers

• Promising

• Need attention

• About to sleep

• Cannot Lose Them But Losing

• At Risk

• Hibernating customers

• Lost Customers

• Ghost Customers

• Guest Customers

• Recently Added

You can read more about what it means if a customer is part of a cluster in the "Insights for the Customer Cluster💡" table within Chartsy.

Having one cluster (with numbers attached to it).

Your customers might have a very specific type of behavior, which falls into one particular cluster. In such cases, you may see your Customer Clusters having the same name, but being differentiated by numbers. For example:

• Potential Loyalists 1

• Potential Loyalists 2

• Potential Loyalists 3

The group with the “1” attached to it has the main characteristics of that cluster. The characteristics start fading the more the numbers increase (2, 3 etc.).

If you need a more custom explanation of your results, don't hesitate to book a free demo/explanation session with us by reaching out at [e-mail].

Customer changing their Cluster

Depending on their behavior (and RFM score), customers may change their Cluster each month. You can stay updated about how they've changed by seeing the table "Customers that changed their Cluster in the last month", or via the labels included in the "Cluster Results - Breakdown":

Customers that changed their Cluster in the last month

Picture showing how a customer has changed their Cluster

Keep in mind that our Customer Cluster process starts at the beginning of each month. Any new customers added to your store after this process completes, will be temporarily grouped together as “Recently Added”. This way, you can still see their performance, before the algorithm can include them in a specific Cluster in the next month.