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Simple technique for mining value in small online business(BI & CRM)
Finding VIP Customer = RFM modeling
Defining customer segment = 20/80 RFM with 4,5,10
harder techniques
Segmentation and Cluster
Determining Reach Chanel
Determining VIP’s LVC for promotion’s budget
• LVC=Margin * (RetentionRate ÷ [1 + InterestRate - RetentionRate])
Average revenue per customer over the 12 years
52 weeks * 5 visits/wk * $ 3/ visit * 12 years= $9360
Average profit per customer over the 12 years
20% profit margin * Avg. Revenue per customer/yr = $1872
LTVC
Avg. profit/customer * (80% retention rate) / (1+10%interestRate-80%retention rate)
= 1872*0.8/(1+0.1-0.8)
= $4992
Determining product's rule in segment
Finding out % promotions
Tracking Promotion
Thank your attendtion
Phuc P.T
Data Analyst [at] =>
phuctanpham@gmail.com
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