Presented By: Abhinav Arya (08EM-002) Ajay Kant Sehgal (08EM-005) Amandeep Singh (08EM-007)

London Jets Hockey franchise facing low sales. Management planning to sell off. Mediocre results from high budget ad Campaign Chris Harris, Marketing Manager, facing the challenge to revive the sales.

Improper customer segmentation Inadequacy of customer data Customer retention decreasing Y-o-Y

R – Recency, F – Frequency, M - Monetary The basic premise of RFM is that customers who have purchased more recently, more frequently and have spent more with your company are your best prospects for future direct marketing campaigns.

RFM analysis is commonly performed using the Arthur Hughes method helps marketers visualize and quickly identify important customer segments explore the RFM segments in relation to other customer attributes It is based on three simple customer attributes: Recency of purchase, Frequency of purchase, and Monetary value of purchase

This approach involves scoring customers based on each RFM factor separately. It begins with sorting your customers based on Recency, i.e., the number of days or months since their last purchase. Once sorted in ascending order (most recent purchasers at the top), the customers are then split into quintiles, or five equal groups.

20% of the Top customers through Basic RFM ranking Avg Age - 37 years Avg Sales - $312 Avg Income - $44272

This approach is advocated by Arthur Middleton Hughes – one of the biggest proponents of RFM analysis. It begins like the one above, i.e., all customer are initially grouped into 5 cells based on Recency. The next step takes customers in a given Recency cell – say cell number 5, and then ranks those customers based on Frequency. Then customers in the 55 (RF) cell are ranked by monetary value.

RecencyFrequencyMonetaryRFM Similarly, we code the other quintiles and combine the scores to obtain RFM values. “555” is the best score.

As pre RFM, The highlighted income group should be the segment where more concentration is to be done.

Our most recent customers are 90% vehicle owners

Count of Cust ID Recency SexMarital Status12345Grand Total B(blank)0.00%50.00% 0.00% % B Total 0.00%50.00% 0.00% % FMarried50.00%0.00% 50.00%100.00% Single42.86%14.29% 0.00%28.57%100.00% F Total 44.44%11.11% 0.00%33.33%100.00% MMarried0.00%37.50%12.50%25.00% % Single18.18%9.09%27.27%36.36%9.09%100.00% M Total 10.53%21.05% 31.58%15.79%100.00% Grand Total 20.00% % Married customers are high. More concentration should be on add-ons.

Issue discounts for the club memberships

Die Hard Tourist Miser Flirter

For Married customers, couple passes, and play area for there kids. Happy meal are other good options. Promotional giveaways by sponsoring companies that are announced at the game To waive the membership fee to the fan club after so many games are attended. Cross-sell merchandise True fans of the London Jets

On arrival to the game VIPs could receive free valet parking and a coat check. VIP section of the arena created specifically for higher paying customers Complementary food and drinks be offered to the VIPs by a wait staff so that the fans would not have to leave their seats We believe that the above strategies will help to get this potentially profitable segment to attend more games, and from there we can hopefully build some long-term loyalty.

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