BUS 257hw4 - HW 4 Pgs. 318-319 2) As we can see in the RFM...

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HW 4 Pgs. 318-319 2) As we can see in the RFM analysis on figure 11.3, Lilly Fashions has only retained about 30% of their initial customer base overall, even though their percentage of retention of the customers per year has increased, their overall customer level has gone from an initial 3,200 to 960 in their third year. With a retention rate of about 70% for year 3, we can assume they will probably have about 672 customers come year 4. Customer retention programs and marketing efforts are commonplace amongst businesses. For a business to achieve optimal boost to loyalty they need to offer something more than the standard, something that will resonate with the consumers and encourage them to continue doing business with that company. The figure of data also shows that the loyal customer base will spend more money and make more frequent purchases in the company. Direct response marketing would be a good method for their consumers to view their products, with something like a catalog of their products and/or services. Television and radio ads would be helpful methods to their marketing scheme, but again as the data has shown us, their retained customers are where most of their business is coming from. These loyal customers have a massive impact on their business, and it’s much cheaper to retain a current customer rather than trying to recruit new consumers so providing a lucrative rewards program for frequent purchases with discounts and free gifts would be another positive method that I would encourage Lilly Fashions to endeavor in.
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8) I think one of the best direct response advertising for ForeverWed to sell specific
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This note was uploaded on 07/12/2011 for the course BUS 101 taught by Professor Noname during the Spring '11 term at Albany State University.

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BUS 257hw4 - HW 4 Pgs. 318-319 2) As we can see in the RFM...

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