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I’ve reminded you all about the Pareto Principle, and written about Pareto2. It’s all well and good in theory. But how can it be applied in practice?
One of the most obvious applications is when targeting and budgeting in direct mail. If I am working on a direct-mail pack to my house file (people who have donated through direct mail before), I can use the principle to increase revenue—and usually for no extra cost!
A fundamental mistake in direct mail is when the goal is to reach as many people as possible, as cheaply as possible.
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