Strategy How to Use Selling Expense Ratios
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2. Add another drop (or two) to the 12-month buyer file. Keep in mind that it's difficult to overmail your more recent customers. You'll achieve a higher RPC from your 12-month buyer file, which will help reduce the selling expense to sales ratio.
It's obvious that the entire 13- to 24-month buyer file can't be mailed 12 times a year. Certain segments of the file, based on RFM, should be mailed less frequently. Look to mail the higher dollar segments more frequently. Also, consider less frequent mailings to one-time buyers. Trust what RFM is telling you and mail accordingly.
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- Companies:
- Lett Direct Inc.
- People:
- Stephen R. Lett
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