The Crutchfield Corporation
Pfeifer, Phillip E...
The Crutchfield Corporation
Pfeifer, Phillip E.; Perticucci, Roy L.
M-0427 | Published August 26, 1994 | 5 pages Case
Collection: Darden School of Business
Product Details
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.
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