Valuations & Acquisitions: Why Deal Due Diligence Is Worth a Try

If you’re determined to improve your catalog and Web business, invest some time and make sure your head of marketing analyzes and models your prospecting databases. This will allow you to more accurately set and achieve your growth goals — especially pretax profits — through the preparation of key marketing profitability metric models. These models can calculate for each season and primary type of prospecting the following:
3 a sales per catalog break-even P&L for new customers;
3 the cost to get a new customer;
3 new customer 12-, 24- and 36-month P&L value;
3 old customer reactivation profitability, breakeven and contribution; and
3 individual P&Ls for total revenue from customers and prospects.