# Fundamentals (https://docs.loybox.com.ar/en/segmentacion)



Segmentation automatically groups your members by their purchase patterns, so you
know who is who in your base and can act differently with each group. Loybox
builds the segments for you: there are no rules to define by hand.

<Callout type="info" title="For online stores">
  Segmentation is calculated over the orders of your connected online store.
</Callout>

## How it is built: the RFM model
Every member is classified by three signals of their purchase behavior:

<Cards>
  <Card title="Recency" icon="Clock" description="How long ago they last bought. Someone who bought yesterday is not the same as someone who has not shown up in months." />

  <Card title="Frequency" icon="Repeat" description="How many times they bought. It measures how habitual they are." />

  <Card title="Monetary value" icon="Banknote" description="How much they spent in total. It measures the value they bring." />
</Cards>

Combining these three signals, Loybox places each member in a segment with a
persona and an insight that explain who they are and what to do about it.

## The segments
The segments follow the RFM standard. Some of the most common ones:

| Segment                                      | Who they are                                                  |
| -------------------------------------------- | ------------------------------------------------------------- |
| **Champions**                                | Your best members: they buy often, recently, and spend a lot. |
| **Leales** (Loyal)                           | Regular, consistent members.                                  |
| **Leales en potencia** (Potential loyalists) | Recent buyers with good pace, on their way to loyal.          |
| **Necesitan atención** (Need attention)      | Good members who started spacing out their purchases.         |
| **En riesgo** (At risk)                      | They used to buy and are drifting away.                       |
| **Hibernando** (Hibernating)                 | They have not bought in a while.                              |
| **Perdidos** (Lost)                          | They stopped buying a long time ago.                          |

<Callout type="info">
  The segment names are the ones the dashboard and the API return, in Spanish. The
  English in parentheses is here so you can read the table, not a name you will see
  on screen.
</Callout>

Each segment shows its RFM rule, how many members it groups, its weight in your
base and in your sales, and averages for recency, frequency and order value.

## Plus: your business's health
The dashboard also summarizes the overall state of your base with key metrics:

<Cards>
  <Card title="Active members" description="How many members make up your base in the analyzed window." />

  <Card title="Orders" description="The total number of orders in the period." />

  <Card title="Average order value" description="What each purchase spends on average." />

  <Card title="Repeat rate" description="What share of your members buys again." />

  <Card title="Top 20%" description="How much of your sales the top 20% of your members concentrates (the Pareto rule)." />
</Cards>