You make a certain net profit from the activity. Typically, many direct marketing companies make very little money on their first sale to a customer. Their profit comes from subsequent sales to the buyers acquired in the first sale. As soon as the customer begins to use her card, however, she may build up a big balance, pay interest and annual fee charges, and increase her lifetime value by multiple amounts. Profitability Profitability is usually computed by financial institutions such as banks.
Profitability applies to customers, rather than to campaigns.
The idea in profitability is to estimate the profit that you will receive per year from a given customer, if the customer continues to maintain her product portfolio in the same way in the future that she has been doing in the recent past. Let's take an example. Computers can be programmed to determine the profitability of every customer in a bank based on the customer's current products, balances, and past performance. It is possible to go back more than one year to factor in trends. There is a lot of guesswork built in to profitability estimates.