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RFM analysis

From buying conduct buying past record of the customer, one of the customer analytical method which does the segmentation and the like of the superior customer. Regarding database marketing, it is the most basic one of customer data analysis, there is many also a thing which is mounted as function in the analytical CRM system and the like.

First, to index it converts from the next three viewpoints 1 customer in regard to 1.

* R (recency: Up-to-date buying day) when you bought, it has purchased recently?
* F (frequency: Frequency of sum total buying) you have bought at about some frequency?
* M (monetary: The sum total buying amount) how much you use?

Weight after attaching in numerical value of this each index, summing up when it draws up ranking, that superior customer "recently, many degrees, means the large quantity the customer who has been bought", namely to judge as the superior customer. As for importance and the meaning being agreeable of each index, because it differs depending upon the industry type and business conditions and the handling commodity, method itself of attaching the weight to index numerical value becomes enterprise know-how. When there are also times which do not depend and only two combinations or M index being 3 index everything, they utilize.

RMF analysis (RFM score method), it is said the American mail order industry to the sixties for response improvement of catalog sale and the direct mail that it spread on the center, but furthermore developed this the Jericho consulting and the ASA - the fuse develops "RFM cell cord/code method".

As for this, the respective item of R/F/M ranking it does to divide to independence and (thing of 5 - 7 stages is many), makes the matrix of R×F×M, for example (if they are 5 stages, the matrix which is divided into "the cell" of 5×5×5 = 125 is supposed). The customer the segment is done according to it is generic to some cell of this matrix, becomes basic thought.

As for the group which has high score with all items of R/F/M at the customer layer whose value is high for enterprise, as for the group whose three numerical value is low conversely the possibility, it is judged as the customer layer which sales promotion activity is not done.


As for the RFM cell cord/code it is possible, to grasp the character of the customer, with the combination of three indices it is possible to correspond more appropriately. For example, R being low, that F and M numerical value are high because the superiority whose purchasing power is high
(latency) it means the customer, the marketing strategy which is not taken the customer of this layer becomes important. The purchase amount and frequency being high, it comes and when there are no traces where store ratio goes down suddenly, purchases recently, the ratio which is taken in competitive other companies is high. Then if the campaign strategy which is not defeated to competitive other companies is kneaded and service contents are complete, perhaps it is possible to interpret that there is a possibility the superior customer who is estranged returning already 1 time. In the same way, it comes and store ratio becomes high the marketing activity which responds to each segment possible e.g., it comes from the aspect of price, to the customer whose buying past record is little and it recommendsthe crosscell/ the risecell store ratio to be high buying past record vis-a-vis the many customer.

As for RFM analysis, being something which appraises the purchasing power of the customer who doing is quantitatively, not be able to decide buying conduct, the qualitative appraisal is not possible to purchasing power of the latent customer who has not reached to buying in addition you buy what next. Note is necessary in such point.

Furthermore, the "RFM cell cord/code" has become registered trade mark of the Jericho consulting

 

 

 

 

 



 
 
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