Often, we want to use calculations, statistics, and modeling tools to define and target the most actionable customer segments. We've discussed some of these tools already; now let's look at how and when they are used. Table 17-8 lists some of the most commonly used calculation tools.
|Tool||Description||When to Use|
|Scoring||Rank customer's likelihood of response based on specific characteristics||Target||Develop a ranking for customers based on some other attribute(s)|
|RFM (Recency, Frequency, and Monetary Value of Customers)||Customers who have bought recently, who buy more often, and who spend more have been shown to be the most likely to buy again||Target||Previous behavior predicts future ...|