Question 2By Doan Quynh Trang ID 483 9038

Holistic marketingMarketing must become strategic and

drive business strategy. A company needs to take a more holistic

view of:the target customers’ activities, lifestyle, and

social space.the company’s channels and supply chain.the company’s communications.the company’s stakeholders’ interests.

Holistic marketing will require strong software support.

RFMRecency = The more recently purchase the

better the customer isFrequency = The more frequent the purchase

the more valuable customer isMonetary value = The more money the

customer spend on the company product, the higher value they bring to the company

RFM Days from the last

purchase

Purchase times/ month

$ in purchase

Customer 1 1 6 12000Customer 2 3 3 11000Customer 3 12 12 2000Customer 4 60 11 3000Customer 5 13 5 90000Customer 6 45 1 6000Customer 7 11 2 50000Customer 8 23 4 45000Customer 9 22 5 32000Customer 10 5 8 15000Customer 11 8 7 6000Customer 12 96 3 14000Customer 13 17 5 21000Customer 14 21 10 22000Customer 15 80 9 61000Weight 33.33% 33.33% 33.33%

RFMDays from

the last purchase

Purchase times/ month

$ in purchase R scales F scales M scales Total

Customer 1 1 6 12000 0.3333 0.1667 0.0444 0.5444 Customer 2 3 3 11000 0.1111 0.0833 0.0407 0.2352 Customer 3 12 12 2000 0.0278 0.3333 0.0074 0.3685 Customer 4 60 11 3000 0.0056 0.3056 0.0111 0.3222 Customer 5 13 5 90000 0.0256 0.1389 0.3333 0.4979 Customer 6 45 1 6000 0.0074 0.0278 0.0222 0.0574 Customer 7 11 2 50000 0.0303 0.0556 0.1852 0.2710 Customer 8 23 4 45000 0.0145 0.1111 0.1667 0.2923 Customer 9 22 5 32000 0.0152 0.1389 0.1185 0.2726 Customer 10 5 8 15000 0.0667 0.2222 0.0556 0.3444 Customer 11 8 7 6000 0.0417 0.1944 0.0222 0.2583 Customer 12 96 3 14000 0.0035 0.0833 0.0519 0.1387 Customer 13 17 5 21000 0.0196 0.1389 0.0778 0.2363 Customer 14 21 10 22000 0.0159 0.2778 0.0815 0.3751 Customer 15 80 9 61000 0.0042 0.2500 0.2259 0.4801

RFMDays from

the last purchase

Purchase times/ month

$ in purchase R scales F scales M scales Total

Customer 1 1 6 12000 33.33% 16.67% 4.44% 54.44%Customer 5 13 5 90000 2.56% 13.89% 33.33% 49.79%Customer 15 80 9 61000 0.42% 25.00% 22.59% 48.01%Customer 14 21 10 22000 1.59% 27.78% 8.15% 37.51%Customer 3 12 12 2000 2.78% 33.33% 0.74% 36.85%Customer 10 5 8 15000 6.67% 22.22% 5.56% 34.44%Customer 4 60 11 3000 0.56% 30.56% 1.11% 32.22%Customer 8 23 4 45000 1.45% 11.11% 16.67% 29.23%Customer 9 22 5 32000 1.52% 13.89% 11.85% 27.26%Customer 7 11 2 50000 3.03% 5.56% 18.52% 27.10%Customer 11 8 7 6000 4.17% 19.44% 2.22% 25.83%Customer 13 17 5 21000 1.96% 13.89% 7.78% 23.63%Customer 2 3 3 11000 11.11% 8.33% 4.07% 23.52%Customer 12 96 3 14000 0.35% 8.33% 5.19% 13.87%Customer 6 45 1 6000 0.74% 2.78% 2.22% 5.74%Weight 33% 33% 33%