QUESTION $2$

An art gallery in Cape Town has devised a marketing strategy to identify their most profitable

customers and to encourage these customers to return and purchase again from the gallery. Their

strategy begins with the establishment of a database of high$-$value customers, and then outlines

specific steps to hold exhibitions, private functions and more. They also plan to include other

prospective customers in their database and have acquired potential leads from other art galleries in

the area. Using the broad outline of their action plan below, identify three $(3)$ appropriate metrics

that they must use at each step of$/$in implementing and monitoring the progress of their strategy.

Discuss the metric$($s$)$ that you have chosen and describe how that metric will provide the required

information for the art gallery to make sound and informed decisions at each step.

Action plan steps:

$2\mathrm{.}1$ Identify a relevant target audience based on profitability and establish database. $(7$ marks$)$

$2\mathrm{.}2$ Design exhibitions and events including promotional tools for invitations. Event costs include

venues, catering, insurance, staff, security etc. $(9$ marks$)$

$2\mathrm{.}3$ Monitor purchase behaviour at events and evaluate these according to retention, repurchase,

new purchases etc. $(9$ marks$)$