How Shaklee Developed a Digital Catalog

When it launched a digital version of its catalog 18 months ago, natural nutritional goods cataloger/wholesaler Shaklee was pursuing cost savings and the chance to target a new customer segment. And last week during a Catalog Success webinar called “Digital Catalogs: Expand your audience while slashing your costs,” which was sponsored by digital publishing services provider Nxtbook Media, John Cortez, e-commerce manager at Shaklee, chronicled his company's experience with its digital book.

Seeking ways to cut marketing costs, Shaklee contemplated several ideas, including trimming print mailing lists, stopping production of seasonal catalogs and optimizing self-service products, which independent Shaklee distributors could print on their own.

While not abandoning its print catalog — Shaklee still mails select full product-set print catalogs — the company decided to make it available online, too. In partnership with Nxtbook Media, the digital version of Shaklee's catalog came online nearly 18 months ago. Working with Nxtbook offered several advantages to Shaklee, Cortez said, but chief among them was the fact that Shaklee was able work with the employees it already had in place and didn't have to add anyone.

Better Tracking
The digital catalog is deployed in several different channels for Shaklee's customers, including e-mail or iTrack, an internal CRM tool for the company's independent distributors — and it's unique to those customers. By using iTrack, Shaklee's independent distributors can send out electronic postcards to customers that automatically link back to Shaklee's online product catalog, with a URL unique to that distributor. This allows distributors to be accurately credited for sales.

Other channels where the digital catalog is integrated include corporate communications — Cortez cited the appearance of Shaklee products on the "Oprah" and "Good Morning America" shows — and social media sites, most notably Facebook.

Recent data showed that Facebook is the third most popular URL coming to the Shaklee personal Web site, its online storefront for distributors. Distributors post their unique links of the digital catalog to their Facebook profiles which maintains a unique connection to the distributor, Cortez said.

Potential Roadblocks?
“As of right now, the digital catalog is less of a cost saver, as it is more of a redundant way to get our products in front of people,” Cortez said. “The cost savings will only be realized when Shaklee stops printing its many-paged catalogs.” A typical print catalog drop costs Shaklee $300,000 in printing. And a Shaklee print catalog has a six-month shelf life.

In addition to a continued reliance on the print catalog, Shaklee also is confronted with the age of its independent distributors. Noting that many of these distributors are older, Cortez said for some using and interacting with the Internet is still a daunting prospect.

Future Plans
Not fully satisfied yet with its digital catalog, Shaklee has several areas it wants to upgrade or introduce. These include an ask-an-expert functionality where customers can engage in live chat with order-entry agents, and the use of video and Flash on the company's Web site.

Cortez hopes to continually improve upon the online catalog's interface with its e-commerce engine. “We've taken a single version of the online catalog and dynamically adapted it to individually fit thousands of Shaklee independent distributors,” he said. Tools, like live chat, video and Flash, will only enrich customers’ digital experiences, he noted.

Is It Effective?
Even in the midst of a recession, digital catalogs are worth the investment, Cortez said, citing their relatively low cost, their ability to market to an entirely different market and the potential upside if they're integrated successfully with social media sites. And if a cataloger chooses to abandon print catalogs totally and go completely digital, the savings would be substantial, he added.

Shaklee has seen the following results in its 18 months with a digital catalog:

• slight cost savings for distributors — customers who are Internet-savvy relieve the distributor of postage costs associated with mailing the print catalog;
• better analytics with tracked conversions;
• individually unique catalogs for 5,000-plus distributors;
• benefit of “friend of a friend,” where the same unique link identifying the distributor passes from friends;
• custom interface to Facebook;
• establishment of a new marketing channel;
• increased knowledge of online marketing and social networking; and
• cost savings of redirected revenue, as more revenue is coming online and less on the phone.

And to those worried that a digital catalog will cannibalize their print sales? Don't be, said Cortez. Shaklee's experience hasn't proven this to be true. “They're different channels with different customers."

To tune into the entire webinar, click here.