Customer Segmentation Strategy
A process of identifying customers that fit into smaller, more homogeneous groups.
80/20 Principle
A principle that maintains that 80 percent of a firm’s sales will come from 20 percent of its customers.
Recency-Frequency Monetary Analysis
An analysis that reveals customers most likely to buy from a firm in the future because they have made purchases recently, frequently, and in amounts exceeding an established minimum.
Customer Lifetime Value (CLV)
The total profit expected from all future sales to a long-term customer.