Understanding LTV’s role in setting direct mail CPA targets

Customer Lifetime Value (LTV) and Cost Per Acquisition (CPA) are two metrics that are regularly scrutinized by C-suite marketers, especially when it comes time to decide where to invest their marketing dollars. Unfortunately, direct mail may be overlooked due to a higher CPA than its digital counterpart, even though direct mail marketing ROIs still outperform other channels. Check out the infographic below to learn more about the relationship between your direct mail CPA and LTV, and what these metrics mean for your bottom line.

Infographic image depicting the relationship between customer lifetime value (LTV) and cost per acquisition (CPA) as it relates to the direct mail channel.

The moral of the story

The seemingly high CPA of direct mail makes much more sense for your budget when you view it through the LTV lens. And if you’re looking to scale customer acquisition, the focus should be on understanding your CPA tolerance rather than dwelling on how direct mail’s CPA compares to other channels.

At SeQuel, we’re always looking for ways to make direct mail campaigns more profitable, helping you boost LTV so you can attract the best possible class of customer, and in turn scale the business and outgrow your competition.

Contact us today to learn how our experts, tools and strategies can formulate a profitable direct response marketing program for you.