Question

How should a sales team respond to a customer who has an RFM score of 545?

A: The sales team should contact this customer immediately.
B: The sales team should attempt to up-sell more expensive goods to this customer.
C: The sales team should spend more time with this customer.
D: The sales team should let go of this customer; the loss will be minimal.

Answer 1

D: The sales team should let go of this customer with minimal loss.

Step-by-step explanation:

Answer 2

A sales team should spend more time with a customer who has an RFM score of 545 to maintain their loyalty and potentially increase purchases.

Step-by-step explanation:

The RFM score is a marketing technique that evaluates the value of a customer based on three factors: Recency, Frequency, and Monetary value. In this case, an RFM score of 545 indicates a relatively high score.

Based on the RFM methodology, a higher score signifies that the customer is more recently active, frequently makes purchases, and spends more money. Therefore, it would be advisable for the sales team to spend more time with this customer and offer personalized recommendations to maintain the customer's loyalty and potentially increase their purchases.

Options A and B can be disregarded because blindly contacting the customer immediately or attempting to up-sell without understanding their preferences may not be the most effective approach. Option D, letting go of the customer, would be unwise as the customer's high RFM score indicates their potential value to the business.