Lifetime-value Analysis
What it means, and how to use it in your catalog operation
The chart “Sample: 12-month Value Analysis” (below) shows the initial results and the 12-month repeat results rolled into an income statement. Data in the left-hand columns show that you’d need $1.31 per catalog mailed to break even on your initial mailing.
If you were to use this as the threshold for what to mail, you’d cut out a large portion of your prospecting, which would have a negative impact on your long-term growth.
- Companies:
- Lett Direct Inc.
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