Strategic Database Marketing 4e: The Masterplan for Starting and Managing a Profitable, Customer-Based Marketing Program
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Strategic Database Marketing 4e: The Masterplan for Starting and Managing a Profitable, Customer-Based Marketing Program
The best predictor of future behavior is past behavior. It beats demographics every time.
Arthur Middleton Hughes • Strategic Database Marketing 4e: The Masterplan for Starting and Managing a Profitable, Customer-Based Marketing Program
Customer lifetime value is the net present value of the profit that you will realize on the average customer during a given number of years—typically three years.
Arthur Middleton Hughes • Strategic Database Marketing 4e: The Masterplan for Starting and Managing a Profitable, Customer-Based Marketing Program
For a business file of 20,000 records, therefore, there probably should not be more than 20 RFM cells, each one having about 1,000
Arthur Middleton Hughes • Strategic Database Marketing 4e: The Masterplan for Starting and Managing a Profitable, Customer-Based Marketing Program
contains a search box and many links
Arthur Middleton Hughes • Strategic Database Marketing 4e: The Masterplan for Starting and Managing a Profitable, Customer-Based Marketing Program
possible for the reader to see, get information on, and place an order for any product or service offered by the retailer.
Arthur Middleton Hughes • Strategic Database Marketing 4e: The Masterplan for Starting and Managing a Profitable, Customer-Based Marketing Program
database, we keep track of who they are, what they buy, when they buy, and how much they spend.
Arthur Middleton Hughes • Strategic Database Marketing 4e: The Masterplan for Starting and Managing a Profitable, Customer-Based Marketing Program
every customer should have in his or her database records three single digits: one for recency, one for frequency, and one for monetary. Every customer is either a 555, 554, 553, 552, 551, 545, 544… down to 111.
Arthur Middleton Hughes • Strategic Database Marketing 4e: The Masterplan for Starting and Managing a Profitable, Customer-Based Marketing Program
Now that your file is coded for recency, go ahead and do a promotion to your customer base. Not a special test promotion, but some communication that you had planned to do all along which asks customers to respond or make a purchase. Keep track of which quintile every customer is in and which ones respond.