Spend to Grow

Replace Inactive Buyers
If you want to grow, the amount of prospecting you do needs to exceed your normal housefile attrition rate. For example, let’s assume that 50 percent of a typical customer file will purchase again next year. This means that, at a minimum, you need to replace the 50 percent who don’t purchase so the active housefile doesn’t decline. This includes a combination of adding new buyers and bringing “older” buyers on your housefile into the 12-month category. If you want to grow the percentage of new-to-file buyers, you must do so at an even higher attrition rate than normal.