Answered step by step
Verified Expert Solution
Question
1 Approved Answer
RFM is a method frequently used by direct marketers to assess the value of customers. RFM stands for (R)ecency, (F)requency, and (M)onetary Value. Imagine
RFM is a method frequently used by direct marketers to assess the value of customers. RFM stands for (R)ecency, (F)requency, and (M)onetary Value. Imagine you are a direct marketer for an online company that specializes in selling unique candies from around the world that are difficult to acquire in the United States. You have a large customer database, and you would like to apply the RFM method to value your current customers. You have two jobs. First, (1), you need to assign the correct RFM code values to a subset of your customer database. Second, (2), based on this RFM coding scheme you need to identify which customer subgroups should be targeted with a specific type of direct marketing message. Which person represents the MOST appealing RFM segment of the 4 listed here? with the RFM value of (Round to the nearest whole number.) Which person represents the LEAST appealing RFM segment of the 4 listed here? with the RFM value of (Round to the nearest whole number.) 'Which person represents the segment that we may target with advertising appeals in order to increase purchase frequency? with the Frequency code of 5. (Round to the nearest whole number.) Which person represents the segment that we may target with advertising appeals in order to increase cross-buying and/or upgrading to higher value items? with the Monetary value code of 4. (Round to the nearest whole number.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Based on the RFM Recency Frequency Monetary Value segmentation we need to determine the values for the persons given based on the quintiles provided L...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started