Know Your Housefile

the RFM, while also producing a slight increase in your best segments and a slight decrease in your worst.

The Sweet Spot

The sweet spot is the segments (or segment) that drive the highest amount of total contribution dollars. These may not actually be the most-profitable segments on a percentage basis, but they’ll drive most of your profits. Ensure that your marketing and merchandising programs are designed to continue keeping the counts of buyers in these segments by maintaining a high response rate within that sweet spot.