Jim answers questions from fellow Drillers

(More questions with answers here , Work Overview here , Index of concepts here )

Topic Overview

Hi again folks, Jim Novo here.

Both RF(M) scoring and Lifecycle Grids use the same key predictive metrics – Recency and Frequency. So what’s the difference? RFM is a predictive “snapshot” at a specific point in time; LifeCycle Grids are more like a “movie” designed to be predictive over different periods of time. Another way to think of this: RFM is tactical, LifeCycle Grids are strategic.

You dig? Let’s Drill …

Q: We’re a telecom company trying to get a handle on customer churn and defection, so we can come up with some programs that will hopefully extend customer participation. We live in the no contract space, offering a service that’s an add on to wireless phone service, so we don’t have a good indicator as to when the customer relationship might end.

A: Ah, yes. Your business model is “built for churn”, as I said on my blog the other day.…