As your current markets experience the economy’s effects, your competitors are looking for fresh hunting grounds. Holding onto customers has never been tougher or more critical to success. The problem of retention, however, begins with understanding your own customer base. Recency, Frequency and Monetary (RFM) analysis can give you important insights into what keeps your customers your customers.
AIM ran a RFM analysis on one of our client’s “dead files” – customers that haven’t been contacted or haven’t ordered for a period of time. One customer from a dead file said, “I thought the company went out of business.” Another from a different data set said, “I just started buying from the competitor because they made it easier for me.” In both cases, information was harvested that enabled better retention strategies.