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 customers?
A) viral marketing
B) objective screening
C) internal targeting
D) catalog marketing
E) RFM formula targeting

Question

Quizplus · Accepted Answer

The strategy used here for targeting customers is the RFM formula targeting. RFM formula (Recency, Frequency, Monetary) is a marketing technique used to analyze customer behavior by examining how recently a customer has purchased (recency), how often they purchase (frequency), and how much money they spend (monetary). In this case, the company is identifying customers who have made at least three purchases and spent at least $150 in the past six months, which matches the RFM criteria of high frequency and high monetary value. By offering discount coupons to these customers, the company is incentivizing them to make more purchases and increasing their customer lifetime value.

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