Mining Your Customer Files

Buyers have varying degrees of loyalty and some are more apt to be repeat purchasers from the catalog. In general, you can expect higher response rates and higher average order values (AOVs) from this group, especially if they are recent and repeat buyers.

Naturally, there are a number of gradations within this chart, but a hierarchy is always present. The chart displays the simple concept of RFM or recency of purchase, frequency of purchase and lifetime monetary value of purchases.