Case: Carbon Creek Gardens

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Case Carbon Creek Gardens

• By
• Justin McElroy

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Important Information

• Mary Keeling
• Owns and operates Carbon Creek Gardens
• Retailer of plants and other gardening tools
• Started business 10 years ago
• The Gardens has become a favorite nursery for
  serious gardeners in her community

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Problem

• The business has grown so large that Mary has
  lost track of her customers
• Ran into a loyal customer who she hasnt seen in
  over a year. That customer stopped shopping at
  Carbon Creek because, when she tried to return a
  plant she was insulted by a part time employee.
• Lost one of her best customers and didnt even
  know it
• Mary wants to find a way to know when regular
  customers arent coming around anymore
• Has all sorts of data in her sales database
• Wants to somehow use it to her advantage

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Solution

• The technique that should be used to solve her
  problem would be the RFM Analysis technique.
  This is because RFM Analysis considers how
  recently a customer has ordered, how frequently a
  customer orders, and how much money the customer
  spends per order. And these characteristics are
  exactly what Mary wants to see.

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Solution (continued)

• Another solution would be to produce a static
  report what prints out the top 50 customers from
  the prior year. This solution places the burden
  of locating a missing customer on Mary and will
  be more time consuming, because Mary would need
  to compare two reports and find out who is
  missing on each. In this care the RFM Analysis
  technique would be more suitable and easier to
  use.

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Solution (continued)

• Information needed for RFM Analysis
• Customer contact information
• The date of each purchase
• The number of times the customer makes a purchase
• The amount of money that was spent on each
  purchase

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Solution (continued)

• If the scenario comes up where the second
  suggested technique of static reporting cost half
  the price as the RFM Analysis the one main thing
  that Mary can think about when deciding between
  the two is time consumption. The RFM technique
  is far less time consuming, and by saving herself
  time, she will also be saving money.

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THE END

• Thank You!