RFM post by Kevin Hillstrom

I was recently asked to evaluate how a catalog selects names for upcoming mailings. The Executive told me that her vendor asked her company to switch from model-based selections to … are you ready for this … to RFM … prompting me to offer a predictable response.

And I laughed and laughed. What idiots! My goodness. The vendor community is really failing my client base … again.

One problem.

In my arrogance, I forgot the original request – to evaluate how this company should select names for catalog mailings.

So I evaluated models against the RFM strategy.

The RFM strategy performed to within 0.3% of the prior modeling strategy – a modeling strategy that while not outstanding was at least credible.

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