Strategy Alternative Prospecting Methods (1,424 words)

Reduce Cost Per New Buyer

Alternative ways to prospect can reduce the cost to acquire a new buyer. How much the cataloger can afford to spend for a new buyer depends to a large degree on the lifetime value of the name being acquired (see above).

For example, a cataloger might be able to spend more up front to obtain a new buyer providing there's a reasonable payback time (i.e., less than 12 months). We tend to rush judgment regarding results from the initial campaign without considering how much a new buyer will return in time.