Lifetime Value: Acquisition Costs Across Different Media

Planning for Retention

Without a successful retention program, there cannot be a successful prospecting effort. Why attract new customers that aren’t going to be profitable? Yet that is exactly what many database marketers risk doing when trying new media.

Many of the Web-based efforts, particularly those funded by OPM (other people’s money), spend huge amounts on advertising to drive prospects to their Web sites. Despite the investment they are making on prospecting, some don’t have a coherent retention strategy at all.