In the introduction to the RFM model analyzed segments or groups of customers which presented a similar behavior in their purchases and that serve as the basis to define strategies for marketing to each of these segments. This suggests that the RFM model measurement variables are indicators of the response of customers to bid. They previously chose a random sample of customers to which was sent by email a purchase quote from the book The Art History of Florence, which recorded the intention of purchase of potential consumers. To establish the segments of recent purchases, the 50,000 customers sample is taken and these are classified by the number of months since the last (recent) purchase and then divided into ten groups of equal size. Customers with more recent purchases are in segment 1, and thus divided up the segment 10, which are customers with less recent purchases. Graph 2 shows the relationship between response rate and the segment of clients of recent purchases. The response rate is simply the ratio of each segment customers who bought The Art History of Florence. The results show a strong relationship between recent purchases and the rate of response to the offer.
The response rate for the first segment of customers with more recent purchases is the 0.18 or 18%, while the rate of response for the last segment of customers is 0.02, or 2%. Figure 2 rate of response The Art History of Florence by recent shopping segment analysis was repeated to create the segment of purchase frequency, taking into account the total number of purchases. We can observe the relationship between response rate and frequency of purchase segment in graphic 3. Note that for the frequency of purchase only 6 segments of customers, instead of 10, were created as happened with recent shopping segments. This can happen since the variables for this type of segment, are minor. There is a large number of clients who bought only once for BookBinders. Some of them are new customers who have not made a second purchase. Others only have been interested enough as to make a purchase and cannot reach to be customers for the second time.
Just as with the recent shopping segment, the response rates for frequency purchase segments show a pattern clear: customers with a more frequent purchase index had a response rate much higher in comparison with customers with rates of purchase less frequently. Graph 3 response by frequency segment of purchase rate the same procedure was used to create the segment of purchase amount, analyzing the total money invested by clients. Graph 4 shows the relationship between response rate and the segment of the purchase amount. Once is more similar in relation to the segments of recent purchases, frequency of purchase, although there is a different pattern. Segment 1, which refers to customers who invest more, have a far superior to the remaining segments response rate. Without However, there are only small differences between the response rates of 2 to 7 segments and segments 8 to 10. Graphic 4 response rate per segment in the amount of purchase in the next installment will discuss indicator combined RFM, which will divide the customer group into smaller subgroups compared analysis of segments. This article has been developed based on the document called Recency, Frequency and Monetary (RFM) Analysis of Charlotte Mason of the University of Carolina of the North, United States.
