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| 文件名: Mining Your Warranty Data Using RFM.pdf | |
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Assume you have 10,000 customers, it costs $1 to mail each of them an offer, and you receive $10 in revenue from each offer accepted. If you mailed the offer to all 10,000 customers, it would cost you $10,000 ($1 x 10,000), and if every customer placed an order, your revenue would be $100,000 ($10 x 10,000), with a profit of $90,000. Clearly, this approach is a good business model. Unfortunately, the acceptance rate is more like 1%, so the revenue would be $1,000 ($10 x 100) which results in a loss of $9,000. The business problem here is to identify the customers who are more likely to accept an offer and only mail the offer to them.
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