Strategy: How Lifetime Value Differs in Catalog vs. Web

Web-Driven Buyers Weakest
The weakest group in this example is Web-driven Web buyers. The biggest weakness of these people is their low repeat purchase rate since they’re typically only seeking single items. Mailing them repeated times won’t alter LTV; it’ll only increase direct selling expenses.

Catalog-driven Web buyers have the highest value over time, because they have a higher repeat purchase factor. There are also more of them to repeat. This group also includes the most recent hotline buyers — buyers who receive catalogs and go to the Web to place their orders. Non-Web buyers also have a higher repeat factor and 12-month value.