[Derek Fisch]

Geoff,
If you could give some more specifics about your situation we could give more exact recommendations, but with what we have, here’s a broad response:

The simplest analogy is the best in this case. Think of your customers as a target. The center circle is your perfect customer. Expanding outward, each successive ring is larger but less valuable.

Begin by aiming at the center. Determine exactly how much it will cost to reach it. Track your response and margins. Then, moving outward, calculate the cost to hit each ring. At some point you have crossover where it becomes unprofitable. Careful tracking of your ROI is essential or you’ll never know what’s actually working (besides having a gut feeling, which can be dead wrong). Sometimes when you aim at the center, you hit somewhere else. That’s fine, but remember where your payoff is.