Subject category:
Marketing
Published by:
Darden Business Publishing
Version: 12 April 2013
Revision date: 7-May-2013
Length: 5 pages
Data source: Field research
Abstract
Crutchfield, a large US mail-order firm specializing in consumer electronics and personal computers, must evaluate the results of a recent 'prospecting' mailing to a rented list of names. A determination of the mailing requires the calculation of the lifetime value of the new customers acquired. Case data on repurchase probabilities (broken out by recency and frequency) support such a calculation. The case can also be used to introduce the RFM (recency, frequency, monetary value) framework for valuing customers.
Industry:
About
Abstract
Crutchfield, a large US mail-order firm specializing in consumer electronics and personal computers, must evaluate the results of a recent 'prospecting' mailing to a rented list of names. A determination of the mailing requires the calculation of the lifetime value of the new customers acquired. Case data on repurchase probabilities (broken out by recency and frequency) support such a calculation. The case can also be used to introduce the RFM (recency, frequency, monetary value) framework for valuing customers.
Settings
Industry: