Andy Cutler

With apologies to Thomas Jefferson and the Declaration of Independence, the truth is: Not all customers are created equal. Most companies are aware of the Pareto principle, or the 80/20 rule, which states that 80 percent of your revenue is generated by 20 percent of your customers. But did you know that the top 20 percent of your customers typically generate more than 100 percent of your profits?

Share your ideas and learn from fellow direct marketers as we cover the hottest issues and best practices in customer relationship marketing. Question: How can direct marketers use information housed in their customer databases to promote loyalty? Answers: Customer loyalty can be promoted by personalized communications. Here is a message we received: "Last year, Mrs. Hughes, you ordered Honey Baked Ham for [insert name here.] Since Christmas is coming up soon, we thought we would remind you that it is not too late to order a Honey Baked Ham for delivery this Christmas. To see the orders you placed last year, just click here."

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