Strategy: How Lifetime Value Differs in Catalog vs. Web

Channel of origin does make a difference. This affords catalogers an opportunity to maximize contribution to profit and overhead by learning to deviate from traditional RFM segmentation.

Consider an example of the 12-month value of non-Web buyers vs. Web buyers driven by a catalog vs. Web buyers driven by the Web. The cost to initially acquire the buyer isn’t part of this particular analysis; this example is based on already having these buyers on
your housefile.