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gone down as a result of increased use of the Web rather than telephone calls. Against that, there is a software cost for each group of rst-time buyers of $200,000. Lifetime value has gone up to $89.06, from $67.68. Overall, the changes will increase pro t by a total of $1.7 million over 2 years, as shown in Table 12-3. Note that these pro ts of $1.7 million include all costs, including the heav y losses in round 1 that resulted from the initial software costs. Each cataloger will have to work out its own gures based on its own situation. In the end, however, the results will probably be close to those shown here. When it is done right, database marketing works. Customer communications work. People respond when people they know and have done business with write to them and pay attention to them. Statistics from other catalogers discussed in this chapter show that when you adopt the improvements listed in this chapter The repurchase rate will go up. The average order size will go up. 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