Initially, BookBinders emailed each offer to all members of the Club. As BookBinders has grown, however, shipping a complete list customers have increased. In an effort to improve profitability and revenue performance, Stan Lawton, marketing director of BookBinders, began to assess the efficacy that had marketing techniques in relation to the losClientes database. Due to the success of direct marketing with the techniques of RFM and its relative ease of use compared to other models of commercial approach, Stan decided to test the RFM model. Stan proposes to carry out marketing tests by selecting a random sample of customers in the database, to which they are going to offer new book titles, in order to analyze the response of customers to establish a model of response to the offer of the new book. The results of the response model will be used for the selection of customers which is mailed the offer. The clients of BookBinders database provides a complete record of each customer purchase history.

This includes time that lead as clients, the titles sorted by category, such as cookbooks and books for children. What is relevant for the RFM analysis is that BookBinders keeps a record of the number of months since the last purchase, the total number of purchases as well as the total of the money spent by each customer. With these three variables, Stan can easily test the approach that will be used for the implementation of the techniques of RFM. The offer: The Art History of Florence to test method RFM, Stan conducted a test. I had a random sample of 50,000 clients from the database of BookBinders. To select a random sample of customers, Stan could be sure that all types of clients would be represented there: both recent buyers and not recent, frequent and infrequent buyers and customers who spend a high sum of money in total spending.