LCD Principles and Concepts
We do NOT discuss the details of our LCD Rewards program and it calculations and methods but we are fully willing and open to provide you with a high level overview of the principles and concepts behind our LCD Reward Program logic.
Repeat behavior indicates a higher customer LCD Reward Value, and predicts future repeat behavior, regardless of what the monetary value of that customer. Our LCD Reward logic looks at customers who have spent or visited our properties the most but also considers customer ones who haven't made a purchase or visit our properties or web sites in a while. Our LCD Rewards take into account “frequently� but does NOT penalize inactivity customers. Our LCD Reward logic assumes that if an inactive customer becomes active again, this customer will more likely behave like a new customer than a current customer.
A LCD Rewards customer who repeats their behavior is more likely to continue repeating it, meaning their future value to the business is high. So if repeating customers are rising, then our future business with this segment of customer will be stronger than it is today. If repeaters are falling, business from this customer segment will be weaker in the future. Repeat behavior is a strong indicator of customer loyalty and - it's a "likelihood to return" or "likelihood to buy again" indicator.
The meaning of RFM. A LCD Rewards customer who has visited our web sites Recently (R) and Frequently (F) and has created a lot of Monetary Value (M), through purchases is much more likely to visit and buy again. And, a high Recently / Frequency / Monetary Value (RFM) customer who stops visiting is a customer who is finding alternatives to our current products and services.