Crutchfield, a large U.S. mail order specializing in consumer electronics and PCs must evaluate the results of a recent “prospecting” mailing to a rented list of names. A determination of the mailing requires the calculation of the lifetime value of new customers acquired. Case data to surrender probabilities (broken by recency and frequency) supports such a calculation. The case can also be used to introduce the RFM (recency, frequency, monetary value) fram … Read more »

Crutchfield, a large U.S. mail order specializing in consumer electronics and PCs must evaluate the results of a recent “prospecting” mailing to a rented list of names. A determination of the mailing requires the calculation of the lifetime value of new customers acquired. Case data to surrender probabilities (broken by recency and frequency) supports such a calculation. The case can also be used to introduce the RFM (recency, frequency, monetary value) framework for the assessment of clients.
This is a Darden case study.
«Hide

from
Phillip E. Pfeifer
Source: Darden School of Business
5 pages.
Publication Date: Aug 26, 1994. Prod #: UV0307-PDF-ENG
The Company Crutchfield HBR case solution