Blue Tahiti’s online RFM (Recency, Frequency, Monetary Value) tool allows an organisation to use its own CRM data to easily and accurately analyze their customers behaviour in order to build focused marketing campaigns that will deliver higher ROI.
RFM is a powerful yet simple technique that uses analysis of purchasing behaviour to segment and score customers in terms of their value to the organisation. The score attached to each customer is in fact a model of their behaviour that can be used to segment the customer base for targeting.
In its simplest form RFM says that an organisations best customers are those that buy recently, regularly and have the highest value orders. Blue Tahiti’s online RFM allows additional tuning of the model allowing “What if” scenarios to be investigated such as “Who are my best customers if regularity of purchase is most important to me?” or “Who are my best customers if value of purchase is most important to me?”
Lifetime value (LTV) and a new concept of "customer life cycle management" is the present value of the future cash flows attributed to the customer relationship. Use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction, rather than on maximizing short-term sales.
Blue Tahiti’s online RFM & LTV is simple to use and easy to apply to your operational CRM systems, so that your marketeers can make better decisions and deliver the most effective campaigns