Transcript Document

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Advantages:
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See your top customers
See any changes in top customer behaviors.
Start a reward system for top customers.
Send out e-mails and thank you cards
Disadvantages:
Having to keep up with it.
May have to create a job to keep up
with the reports
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An Olap tool can be used to solve the lost customer problem.
Because it would show clearly the spending habits of the
customers and if there are any significant decreases in sales
from that customer. This would raise a red flag for Mary.
The Olap would list the customers in order of spending habits,
showing what they bought each year and how much they
spent.
Olap may not be the best way to show a lost customer
because it only shows how much was spent, and not the
frequency of the shopper.
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The decision tree analysis may not be
the best application to avoid lost
customers. There is still no physical
interaction between Mary and her
customers, only data of all the shoppers
which can easily have the more
important customers lost in the shuffle.
R:(recently) F:(frequently) M:(money)
 Using this application Mary can take a
more direct approach to finding out just
how many times a customer has been in
the store, also when was the last time that a
customer has shopped there, and finally
how much money the customer has spent.
 Depending on the rates for each customer
Mary would be able to easily pick out the
customers that she wants to target.
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MBA – is a data mining technique for
determining sales patterns. (What else is
in your basket).
 Would not be used to solve the lost
customer problem because all it shows is
what products compliment each other.
In other words what products customers
buy together. Does not show individual
customer buying habits, only all buying
habits as a whole.
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If we owned Carbon Creek Gardens the
application that we would choose
would be the RFM application.
 This program seems to satisfy the needs
of being able to target lost customers
and the top buyers.
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