Besides the MOS selections, the software also supports a high-performance scoring model. This model is based on the RFMR method particularly popular among mail order houses. RFMR stands for Recency, Frequency and Monetary Ratio. The idea behind it is that customers who have made a certain number of relatively extensive purchases in the current or previous observation period are highly likely to be more valuable to the company in future than customers who made fewer purchases at greater intervals for less money. The recommended action for the marketing department is to obtain the loyalty of customers who made large, frequent and recent purchases. The procedure is effective for, and can be applied to, the entire customer master data pool:

• R (Recency) = How long ago did the customer place the last order?
• F (Frequency) = How frequently did the customer order during a specific period?
• M (Monetary, Contribution Margin II) = How profitable were customers during a certain period?

For every value (R, F, M), criteria are defined on a value scale from 1-10. A customer can achieve a maximum of 30 points. The points awarded depend on the individual situation of the mail order house and the current state of the market.

The target addresses gained from the RFM selections can then be approached directly out of the system.

MOS-TANGRAM uses what is surely one of the most widespread and most widely tested RFM tool. Due to its depth and networked integration into customer, product and order histories, it can be used to develop countless RFM scenarios. The easy-to-use storage, journal and report functions help the mail order vendor to put his customer master data into perspective at the touch of a button. The possibility of selecting between RFM scenarios makes it easy to rapidly implement new advertising campaigns that promise future success and to renew those that brought success in the past.

For larger companies, MOS-TANGRAM offers the option of daily export of all relevant data to a data warehouse. In this data warehouse, existing OLAP cubes, or ones created according to the customer’s specifications, are used to carry out additional analyses. With the optional BI tool Decision Works, decisions can be made for corporate or division management based on the Balanced Scorecard methodology. The areas to be evaluated (customers, articles, yields, orders received, delivery capability, average processing time for a return or complaint, etc.) are shown in red, yellow or green depending on the target specifications. A daily look at this cockpit provides a clear picture of where each division and the company as a whole stand.

The rapid, flexible and easy-to-do analyses make your business transparent, providing the right information to all decision-making levels.

Experience all of MOS-TANGRAM’s functions in action! Let us show you the features and one of our staff answer your questions.