Customer Relationship Management: Getting It Right!

17.6. Understanding the Tools

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.

Table 17-8. Segmentation and Targeting 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 ...