Lifetime-value Analysis
What it means, and how to use it in your catalog operation
Few catalogs make money on first-time buyers. Ultimately, the profitability of a new buyer depends on his or her lifetime value (LTV) to your company.
Catalogers tend to evaluate lists based on the first sale. You compare the results against an incremental break-even point and determine if that particular list will be mailed again. That is, some catalogers take a short-term view to a long-term opportunity. It’s the value of a new name over time that’s important.
- Companies:
- Lett Direct Inc.
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