The following is from the November 2008 Drilling Down Newsletter. Got a question about Customer Measurement, Management, Valuation, Retention, Loyalty, Defection? Just ask your question. Also, feel free to leave a comment.
Want to see the answers to previous questions? The pre-blog newsletter archives are here.
Offline Engagement Modeling
Q: In our business (airline) – particularly on the loyalty side – we’ve been using both RFM as well as lifetime and current cumulative totals. For instance in our mileage program, we look at both lifetime miles earned and used as well as current balance.
Does that seem appropriate?
A: Well, I guess the question is appropriate for what purpose, what action are you driving to?
For example, if you were to divide metrics into “strategic” and “tactical”, meaning “for management / long-term planning” and “for campaigns / taking short-term action” then you get different answers.