The Iron Rule of RFM

What does a sales report for RFM analysis look like?

Figure 2 below shows part of a typical sales report that breaks out sales and response rates by mailing code.

By studying the columns for response rate, sales per catalog, and profit per catalog, you can see that this cataloger is leaving money on the table by undermailing his top performing RFM groups, and by overmailing his worst-performing RFM groups. This cataloger could significantly boost his results, even without printing any more catalogs, just by mailing less to the RFM groups identified in this report as weakest, and using the freed-up catalogs to mail more often to the RFM groups that this report shows to be more responsive.