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Email Marketing by the Numbers: How to Use the World’s Greatest Marketing Tool to Take Any Organization to the Next Level by Ali Sales, Chris Baggott

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Chapter 6 Review

  • Recency, Frequency, and Monetary value (RFM) analysis is based on customer behavior. Use it to predict who will be most receptive to developing into a loyal, high Lifetime Value constituent.

  • Recency is the most powerful predictor of customer response.

  • The profits from RFM come in the form of higher response rates, greater LTV, and real dollar savings through efficiency.

  • If a customer pattern is broken, you should act immediately in an attempt to discover what instigated the change or to get the behavior back on track.

  • One of your marketing goals should be to identify the people who are taking your organization to the next level and develop more of these individuals.

  • As such, I recommend these three segments for every organization: the “best” constituents, the “almost best” constituents, and “new” constituents.

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