Sources: Best Buy, Wall Street Journal
quote: Back in 2005, an article in The Wall Street Journal outlined an initiative of Best Buy’s then-CEO, Brad Anderson, to categorize and separate customers into two groups: angels and devils. “Angels” are Best Buy customers who, “boost profits at the consumer-electronics giant by snapping up HDTVs, portable electronics, and newly released DVDs without waiting for markdowns or rebates.” These are the type of customers who, if they are part of your email subscriber list, could be identified as highly profitable when you conduct an RFM query in BlueHornet.But listen to Best Buy’s definition of a “devil” customer: “They buy products, apply for rebates, return the purchases, then buy them back at returned-goods discounts. They load up on ‘loss leaders,’ severely discounted merchandise designed to boost store traffic, then flip the goods at a profit on eBay. They slap down rock-bottom price quotes from Web sites and demand that Best Buy make good on its lowest-price pledge.” Hmm….Depending on the parameters of your RFM query, these devils could be identified as profitable customers, right along with your angels.