15-Minute Interview With Don Mokrynski

Don Mokrynski, chairman of Mokrynski & Associates and this year’s List Leader of the Year, talks about trends to watch in catalog lists and database marketing

It’s been 26 years since Don Mokrynski founded the Hackensack, N.J.-based list brokerage and management company that bears his name, and he is one who has remained at the forefront of his industry every step of the way. Indeed, The Direct Marketing Association’s List and Database Council recently presented Mokrynski with its DMA List Leader of the Year Award.

Catalog Success contributing writer Alicia Orr Suman spoke to Mokrynski a few days before he accepted the award to get his thoughts on the trends and issues in lists and database marketing as they relate to the catalog industry today.

Catalog Success: How does the catalog list landscape compare to several years ago? Are we dealing with basically the same issues, or are there new issues and opportunities?

Don Mokrynski: Since 2000, we’ve been seeing a decline in response rates as we’ve come out of what we realize was a tech bubble in the late ‘90s. This has resulted in catalogers relying more on housefiles. There are fewer new-to-file names, and that’s led to more modeling, more offers of free shipping and more online promotions.

The online area is, on average, representing about 30 percent of a cataloger’s business across the board — lower in some cases and higher in others, of course. And that’s great news, because the Web is giving consumers another choice for doing business with catalogers.

But it’s important to recognize that the online business still is being driven primarily by the mail. The Internet also has fostered more e-mail activity on top of the regular mail. But the mailed catalog is still the engine that’s driving sales in this business.

CS: Is there a way to successfully step outside of the box and find truly new names, new buyers?

Mokrynski: If I didn’t think so, I wouldn’t be in the list business. But the fact is that the business has changed — for mailers and for list brokers. We now must go far beyond traditional list usage to keep buyer files growing.

In my own company, we’ve significantly broadened the scope of the services we offer our clients to include e-mail deployment and other e-commerce services; consumer research such as surveys and focus groups; ongoing industry surveys covering acquisition strategies and promotional tools; and high level analytics like customer lifetime value, competitive analysis and long-range sales planning.

Of course, we’re also helping them with the fundamentals — to increase their use of their best lists on additional mail dates; to improve their customer contact strategy; and more accurately track their Web sales on a list-by-list basis to make better list decisions.

As I mentioned earlier, we’re seeing increased use of Web-based acquisition techniques. One tool that shows particular promise is paid search. Based on our experience, this can produce the highest ROI of any Web prospecting medium.

CS: What kind of fall/holiday mailing season do you anticipate from catalogers? Do you think circulation plans will be conservative, essentially remaining flat, or are people stepping up and mailing more?

Mokrynski: The catalog/online market appeared to be in recovery mode earlier this year. Hard goods had a good last December. July was the beginning of the fall mail season, and so far things look OK. Most catalogers’ plans are still on the conservative side, meaning that prospecting is relatively flat so far, or at about 2 to 4 percent growth.

But it’s important to note that in the past few years catalogs have been shifting to a later holiday selling season, with the strongest months in October and November and even selling straight into late December, with overnight delivery now guaranteed. So we’ll have to wait and see about how we come through the holidays.

CS: For those catalogers who are mailing more, what kinds of lists are they looking to add?

Mokrynski: Everyone would love to have their best list double in size. But that’s not going to happen.

So the question becomes, how do I get the most mileage out of those lists I do mail? One way is to go deeper into the performance history of those lists. Then extend the number of selections you’ll test on those lists to see if you can make a broader base of names work.

Try modeling and list optimization on those same best lists, and see if that makes them continue to work for you.

CS: What impact do you see the Internet having on the catalog field and on mail plans?

Mokrynski: Naturally, e-mail communication is going to increase. We’re seeing increased outbound customer e-mails; in some cases, catalogers are e-mailing one time each week. But we also are seeing more catalogers experimenting with paid and organic Web searches, affiliate marketing, and in some cases even e-mail list rentals. You have to be willing to test these things.

CS: What do you see as your greatest contributions to the catalog industry?

Mokrynski: I always try to operate in a manner of consultation and work to learn about the whole business before making any list selections. Some may think that’s overkill. But to me it has always made good business sense to get more information about my clients before I start making recommendations.

Also, I’ve learned from working with so many catalogers that they are true students of the business in which they work. I’ve never seen an industry where people are so willing to share ideas with friends, associates and competitors, and to talk openly. It’s their work and their passion, and that’s inspiring to me.