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1. Who Does It Work For?
Consider three businesses, each trying to find new customers. Each of the three spends £250 sending a mailshot to a list of 1,000 names.
1.1 Safari Travel Ltd sells holidays for £1,000 each, £250 of which is profit.
- If one person books a holiday, the mailshot has paid for itself.
1.2 Sam's Sandwich Shop makes £1 profit on each £2 sandwich it sells. Regular customers spend about £5 a week, generating £125 profit each in a year.
- If the mailshot brings in two new regular customers, it has paid for itself.
1.3 Monogram Mugs makes a clear £5 profit on each set of mugs it sells. But customers do not buy more than one set.
- The mailshot would have to produce 50 new customers, just to pay for itself.
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