A local hair salon is analyzing its customer data to determine the last time each customer visited the salon,if he or she purchased a hair care product,and how much money the customer spends on the salon's services and products.In essence,it is trying to determine its customers' profit potential so it can target them for marketing efforts.What data analysis tool is the salon using?
A)recency-frequency-monetary analysis
B)demographic value analysis
C)customer segmentation analysis
D)predictive modeling
E)lifetime value analysis

Question

Quizplus · Accepted Answer

The salon is using recency-frequency-monetary (RFM) analysis to determine each customer's last visit, purchase history, and spend to determine their profit potential. RFM analysis is a data analysis tool commonly used for customer segmentation, which can help businesses target specific groups for marketing efforts. This tool allows the salon to understand customer behavior and make data-driven decisions to increase sales and revenue.

A Local Hair Salon Is Analyzing Its Customer Data to Determine