Giant Dragon has three customers: Andrew, Pat and Sarah. The store wants to pick up...
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Accounting
Giant Dragon has three customers: Andrew, Pat and Sarah. The store wants to pick up one customer who is the most valuable to it. Please use the RFM analysis and help the store choose the right customer. The point allocation rules are listed in Table 3. The customer data is listed in Table 4.
Table 3. Point Allocation Rules
Recency
20 if within past 2 months; 10 if within past 4 months; 05 if within past 6 months;03 if within past 9 months; 01 if within past 12 months;
Frequency
3 points for each purchase within 12 months. Maximum = 15 points.
Monetary Value
10 percent of the $ Volume of Purchase with 12 months; Maximum = 25 point
Weight
Recency
Frequency
Monetary ($)
6
3
4
Table 4. Consumer Data
Consumer
Month
Recency
Frequency
Monetary ($)
Andrew
September
2
2
70
July
4
2
100
February
9
1
80
Pat
April
7
2
500
Sarah
October
1
1
80
June
5
2
90
May
6
1
50
Februrary
9
1
30
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