Consider the following 4 proposed ideas with which an e-commerce app is planning to segment its 1 million customer base for its end-of-season sale campaign using the RFM framework.
Which of these are in line with the best practices?
- Idea I: Applying RFM segmentation only to the top 10% of spenders to maximize ROI on marketing efforts.
- Idea II: Creating numerous micro-segments to ensure highly personalized communication for each small group.
- Idea III: Segmenting customers based on their purchase recency, frequency, and monetary value to target them with personalized offers.
- Idea IV: Using RFM segmentation for targeted campaigns across all communication channels, including email, SMS, and push notifications.