Lifetime-value Analysis
What it means, and how to use it in your catalog operation
Most likely, you’ll find new buyers’ LTV depends on how they were acquired. For example, people who buy as a result of an event (e.g., sale, promotional offer) probably don’t have the LTV of new buyers who convert from catalog requests or from rented lists.
You’ll also find LTV differences among the types of prospect lists you use (e.g., direct response, subscriber, compiled). This also could be true for first-time Internet buyers. For all of these reasons, calculate the LTV of a buyer garnered from different media, lists and offers.
- Companies:
- Lett Direct Inc.
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