OrdOnline, a pure click company offering online auctioning, decides to launch a promotional program to increase its sales. The company identifies customers who have made at least three purchases and spent at least $150 in the past six months and offers discount coupons to these customers. Which of the following strategies is used here for targeting the customers?

Question

Quizplus · Accepted Answer

The strategy used here for targeting customers is the RFM formula targeting. RFM stands for Recency, Frequency, and Monetary value. In this case, the company is targeting customers who have made at least three purchases (Frequency) and spent at least $150 (Monetary value) in the past six months (Recency). This approach is commonly used in direct marketing to segment and target customers based on their past behaviors and purchase patterns.

OrdOnline, a Pure Click Company Offering Online Auctioning, Decides to Launch