Sunday, June 17, 2012
#RFM in Social Media
I've been taking classes in Social Media (believe it or not) and they suggest that I should find a search term that others might be looking into. Since I've had major wins in catalog circulation I tried that. Well both terms are a bit too general I think. I use predictive modeling but I find tweets by super models. If I use quotes to combine the terms I find people in financial analysis which I really know nothing about. In the shower this morning I thought about #RFM. It stands for Recency, Frequency, Monetary. It is the foundation of almost all customer scoring. Unfortunately, with most formulas, RFM masks the potential of the best customers and also smudges the the worst into one big glop. We virtually always beat #RFM by working a lot harder, creating a host of additional variables. So, I'm going with #RFM (or e-RFM) and we'll keep exploring with Social Media.
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