Simple technique for mining value in small online business(BI & CRM)

Finding VIP Customer = RFM modeling

Defining customer segment = 20/80 RFM with 4,5,10

harder techniques

Segmentation and Cluster

Determining Reach Chanel

Determining VIP’s LVC for promotion’s budget

• LVC=Margin * (RetentionRate ÷ [1 + InterestRate - RetentionRate])

Average revenue per customer over the 12 years

52 weeks * 5 visits/wk * $ 3/ visit * 12 years= $9360

Average profit per customer over the 12 years

20% profit margin * Avg. Revenue per customer/yr = $1872

LTVC

Avg. profit/customer * (80% retention rate) / (1+10%interestRate-80%retention rate)

= 1872*0.8/(1+0.1-0.8)

= $4992

Determining product's rule in segment

Finding out % promotions

Tracking Promotion

Thank your attendtion

Phuc P.T

Data Analyst [at] =>

phuctanpham@gmail.com