Explain the value of applying the recency/fre- quency/monetary assessment to an organization's cus- tomer database Is it possibl

Question

3 years ago

9

Explain the value of applying the recency/fre- quency/monetary assessment to an organization's cus- tomer database Is it possibl

e to determine when an organization should place more weight on one of the three variables over the other? If so, explain why. If not, explain why not.

Business

1 answer:

maks197457 [2] · Answer 1 · 2022-12-03T06:56:15+03:00

Answer:

RFM stands for Recency, Frequency, and Monetary value, each corresponding to some key customer trait. These RFM metrics are important indicators of a customer's behavior because frequency and monetary value affects a customer's lifetime value, and recency affects retention, a measure of engagement.03-Jun-2021