Business Information System

Name:______________________________
INFS 247 Extra Credit Assignment – CRM
Complete this assignment by printing out this sheet and writing your answers on this document. When completed, scan as a PDF document with the filename, CRMExtraCreditYOURLASTNAME.pdf, and upload to Sakai. If you do not have a scanner, or have to take a picture with your smartphone, download a PDF app to your smart device and convert image to PDF. If possible, please submit as one PDF document (not separate PDFs for each page).

Joe Giancarlo wants to conduct an RFM analysis on Joe’s Pizzeria’s loyalty program members. Joe wants to score each member based on their activity during the most recent year. Joe pulls the following records but realizes his data has some data quality errors. Find the data quality errors and then determine the RFM score for the relevant records.

Record #
Customer Last Dine (Days) Number of Dines Total Spend
RFM Score
1 Eric 28 14 $420
2 Mike 26 11 $165
3 Johnna 21 19 $910
4 Erica 373 0 $0
5 John 7 12 $780
6 Joni 356 2 Twenty-Four
7 Renny 33 28 $1,680
8 Kamala 12 24 $600
9 Mary 5 1 $28
10 Lauren 14 18 $288
11 Kerri 24 10 $1,000
12 Mitch 18 21 $264
13 Donald 3 36 $1,800
14 Jerry 58 7 $280
15 Kerri 24 10 $1,000
16 Joe 191 5 $75
17 Nancy 16 23 $460

Identify the data quality errors and assign each customer an RFM score from 1-5 for each dimension, with 5 being the highest score and 1 the lowest score for each dimension. Each dimension score will have the same number of customers (e.g., the number of customers with a 5 in a dimension will be the same as the number of customers with a 4, 3, and so on, in the same dimension).
See the questions below for further instructions
Data Quality (3 points)
1. Which record number contains the timeliness error? ______ (cross out the record in the table)

2. Which record number contains the conformity error? ______ (cross off the non-conforming cell and enter the value that follows the domain).

3. Which record numbers violate the uniqueness rule? ____________ (cross out one of the violating records)

RFM Analysis – Table (9 points)
Enter the RFM scores in the column above for the corrected/relevant records. Use a score of 1-5 for all each dimension – Recency, Frequency, and Monetary Value. (Hint: Sort the records in order by one dimension at a time, and assign scores based on that dimension. There should be 5 equal sized groups in each dimension).

 
RFM Applications (8 points)
Use your completed RFM scores in the table above to answer questions 4-7.
4. One customer has an RFM score of 443 and another has a record of 344.
a. Who are those two customers? ______________________________
b. Are they equally valuable? Explain?

5. Two customers have the same RFM score.
a. Those customers are: __________________________________
b. Their score is: _________________
c. Are they equally valuable? Explain?

6. One customer has an RFM score of 511.
a. Who is that customer?___________________________
b. What inference/conclusion(s) might you draw about that customer’s activity in the last year?

7. Provide at least one example of how your marketing/promotion might differ between customers (feel free to select any customers you wish for comparison/contrast).