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Case study
Publication date: 20 January 2017

Phillip E. Pfeifer and Roy L. Perticucci

Crutchfield, a large U.S. mail-order firm specializing in consumer electronics and personal computers, must evaluate the results of a recent "prospecting" mailing to a rented list…

Abstract

Crutchfield, a large U.S. mail-order firm specializing in consumer electronics and personal computers, must evaluate the results of a recent "prospecting" mailing to a rented list of names. A determination of the mailing requires the calculation of the lifetime value of the new customers acquired. Case data on repurchase probabilities (broken out by recency and frequency) support such a calculation. The case can also be used to introduce the RFM (recency, frequency, monetary value) framework for valuing customers.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

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