Strategy: Maximizing Outside List Performance

In both results shown in the chart, the revenue per catalog (RPC) mailed is identical. But the response rates and AOS differ. From an operational standpoint, it might seem better to have fewer orders and the same RPC. From a marketing viewpoint, however, a higher response rate is preferable because it results in greater housefile growth. In the example in the chart, the higher response rate yielded 270 more new buyers.