Kenan-Flagler Business School The University of North Carolina

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Tuscan Lifestyles: Targeting Customers with RFM Analysis Updated March 26, 2014 Sara Beckman is increasingly confident that careful analysis of the Tuscan Lifestyles customer database will lead to ... more efficient and effective marketing decisions. As director of marketing for the upscale specialty catalog specializing in cookware, tableware, linens, and decorative home accessories in the spirit of the Tuscany region of Italy, Sara has been pursuing several initiatives in database marketing and customer relationship marketing. Tuscan Lifestyles is proud of its track record in identifying prospects that become customers. Their historical response rate for direct mail to prospect lists is 2.3% – far above the industry average. However, Sara is convinced that there are opportunities to increase the effectiveness of subsequent catalog mailings. Tuscan Lifestyles typically mails catalogs four times a year to their full customer list. Yet, as their customer list grows Sara wonders if it may be more effective to develop a portfolio of catalogs – and, through market tests, identify which subset of the full customer list to target. [Show More]

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