What methods does Drilling Down use?
Drilling Down uses my own derivations of the classic customer behavior model RFM. The other two models – Latency and Recency – are related concepts. Latency is a special form of Recency, and Recency is a core element of the RFM model. So while it seems there a 3 models, the core concepts driving all three are the same. Learn one, you learn them all. Why 3 then? Because if all you have is a hammer, everything is a nail. Each model is good for some things and not as good for others.The RFM model was developed in cataloging and TV Shopping for predicting the likelihood of a customer responding to promotions and judging a customer’s value to the company. Interactive customers behave differently than offline customers, so the “classic” RFM approach has to be modified somewhat for use on the ‘Net, and is simplified to make it easier to use for people new to data-driven marketing. These modifications do not make the techniques less effective offline, because the RFM model is being used in a d
