Ask the Right Questions to Get Your Metrics Positioned

Q4. If you pay to secure new customers, is the cost per customer justified economically by the profits of the customer in the first 18 months after acquisition? Is the lifetime value model used for this calculation up to speed (based on your actual latest profit and loss percentages, line by line)?

Q5. Concerning the character of your proven prospect universe (i.e., the quantity of outside names you can prospect to with at least breakeven or an acceptable cost per customer level) for your biggest catalog drop of the year, is there an extra quantity of names you’re not mailing that’ll perform and give you incremental growth? Are these names already in your circ plan?