L.L. Bean Inc. has been reducing the number of catalogues it sends out while increasing its sales and profits. L.L. Bean now identifies customers who have purchased recently and often and have spent considerable money. Such customers are most likely to purchase again. What is L.L. Bean using to identify these customers?
A)predictive data
B)trend data
C)correlation analysis
D)recency-frequency-monetary analysis

Question

Quizplus · Accepted Answer

L.L. Bean is using recency-frequency-monetary (RFM) analysis to identify customers who have recently made frequent and high-value purchases, as these customers are likely to purchase again. RFM analysis is a customer segmentation technique that examines three key customer behaviors: recency (how recently did they make a purchase), frequency (how often do they make purchases), and monetary (how much do they spend). By analyzing these three factors, companies like L.L. Bean can identify their most valuable customers and target them with personalized marketing messages and offers.

LL Bean Inc