Customer Retention: Keep ‘em Coming Back for More

You incur carrying costs for inactive customers, similar to the ones for inactive inventory. If a customer completes her lifecycle with your organization after six months and you continue to mail a catalog every month for 24 months, 18 catalogs are guaranteed zero return. Presuming a cost of $1 per piece, that’s $18 off your bottom line. Multiply this by 10,000, and $180,000 is lost.