This is useful formula to find most valuable customers. It is called RFM- Recency, Frequency, and Monetary value.
· Recency: How recently a customer purchased items.
· Frequency: How frequently a customer purchases items.
· Monetary value: How much a customer spends on each purchase?
For example, if Mrs. Zara always buys software but never computers, then the company should offer him free software with the purchase of a new computer. CRM technologies an organization can use to strengthen its customer relationships and increase revenues (Paige, 2009)
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