An RFM analysis is used to:
A) determine which products or services are most popular.
B) identify the most loyal customers.
C) track the replies from direct mail pieces.
D) compare the efficiencies of various direct marketing programs.

Question

An RFM analysis is used to: 
A) determine which products or services are most popular.  
B) identify the most loyal customers. 
C) track the replies from direct mail pieces. 
D) compare the efficiencies of various direct marketing programs.

Quizplus · Accepted Answer

An RFM analysis (Recency, Frequency, Monetary) is a tool commonly used in marketing to identify the most loyal customers based on their purchasing behavior. Recency refers to the last time a customer made a purchase, frequency is how often they make purchases, and monetary refers to how much they spend. By analyzing these factors, businesses can segment their customers and target their marketing efforts more effectively to maximize their return on investment.

An RFM Analysis Is Used To