We read a lot about obtaining the "optimal" solution.
There is no such thing.
Let's review an old-school catalog marketing concept of an "optimal" solution. We have an individual customer worth $100 in the next year, with a 40% organic percentage and a 30% profit factor. The company currently sends 16 catalogs a year at an average of 80 pages each. The paper industry nuked this business, causing them to "re-evaluate everything". Smart people.
So they run scenarios for everything from 0-24 contacts per year and 16-160 pages per contact. Which solution is "optimal"? Take a look.
The green cells are the most profitable cells. Sending 24 catalogs @ 160 pages each is clearly not the optimal strategy.
But there are dozens of answers that all similarly optimal.
- 24 contacts / 16 pages = $6.20.
- 11 contacts / 48 pages = $6.00.
- 8 contacts / 72 pages = $6.14.
- 6 contacts / 120 pages = $6.51.
- 5 contacts / 160 pages = $6.82.
- Do you contact the customer every ten weeks with large catalogs, 800 pages a year?
- Do you contact the customer every-other-week with tiny catalogs, 384 pages per year?