Catalog/Multichannel Business Growing and Prospering, DMA Report Shows

Increased multichannel sales and catalog circulation highlighted the findings of a recent Direct Marketing Association report, Multichannel Marketing in the Catalog Industry. Focusing on 2006, the report, based on surveys completed online by 474 catalog marketers, revealed that successful multichannel marketers have consistent and integrated standards across all channels — catalog, retail and e-commerce. Here’s the report’s findings:

* Nearly 70 percent of respondents reported increased multichannel sales over 2005;

* 59 percent reported increased catalog circulation in 2006;

* Of respondents who have catalogs, 44 percent of their total sales came from the Web (vs. mail and telephone), up from 39 percent in 2005;

* 33 percent believe their Web sales were “incremental” — that they wouldn’t have received particular orders without their Web sites;

* Respondents whose online sales are increasing reported a 20 percent overall growth rate;

* 45 percent said their “Web site/e-catalog” was their primary marketing channel, followed by the paper catalog (33 percent) and retail stores (22 percent);

* On the offers and promotions marketers would use in 2007, e-mail promotions led the list (82 percent), followed by discounts/special sales (67 percent), coupons (38 percent) and prize/sweepstakes promotions (33 percent);

* 42 percent planned to offer free shipping this year; and

* More than half of all respondents have fully integrated marketing and advertising, product selection, pricing, fulfillment, and shipping and handling policies.

Why the positive vibe for 2007? Respondents cited a number of factors, including overall economic conditions, overall company growth and better response rates.

For more information, go to www.the-dma.org .