Find New Customers, Without Breaking the Bank
It is imperative to determine the lifetime value of customers by source. Robert Hackett, RRD Direct’s vice president of sales, provides the following formula:
Lifetime value is a function of frequency of purchase, multiplied by the gross margin, multiplied by the duration of brand loyalty.
What can you afford to pay for a new customer? To make that determination, Gary Hennerberg of the Hennerberg Group suggests you take the following steps:
Denny Hatch is the author of six books on marketing and four novels, and is a direct marketing writer, designer and consultant. His latest book is “Write Everything Right!” Visit him at dennyhatch.com.
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