Spend to Grow
Face it: Acquiring new buyers costs money, but it’s the lifeblood of any catalog business. Think of prospecting as an investment in your future. Know how much prospecting you need to do based on the attrition rate of your housefile. Consider adding a growth factor on top of that. Balance your circulation to prospects vs. the housefile to protect your bottom line.
Stephen R. Lett is president of Lett Direct Inc., a catalog consulting firm specializing in circulation planning, forecasting and analysis, and author of “Strategic Catalog Marketing,” a Catalog Success book published by Target Marketing Group Publications. You can reach him at (302) 537-0375 or via his Web site, www.lettdirect.com.