A CEO’s Guide To Catalog Circulation ’08 (Part 1 of 3)
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Most catalogers continue to mail “multichannel” and “online-only” customers. This can become a self-fulfilling prophesy, however. Matchback analysis confirms that online orders occur among an audience that’s been mailed. Catalogs drive online orders. All is good ... or is it?
Many catalogers fail to execute “mail/holdout” tests, which are the only way to truly know whether catalogs drive online sales. One group receives the catalog, one does not. After 12 weeks, you tabulate sales results from the mail, phone and online channels. By subtracting the holdout group from the mailed group, you can identify the “incremental” difference, which is the true amount of value generated by catalog mailings.
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