How to Make List Prospecting Work (1157 words)

One way to do this is to look at an estimated 12-month payback from a newly acquired customer. By forecasting the number of mailings, estimated response rate, average order value (AOV) and average catalog cost — and knowing your contribution margin — you can do just that.

Let's assume that in the full year after a customer is added to the file, he or she will be mailed seven times.