An Appetite for Growth

A Boost in Response

One way to combat declining response rates is to mail more; another tactic is to sweeten your offer. As prospecting effectiveness declined in the late 1990s, Cryer Creek’s competition was enticing prospects with deep discounts. But discounting product was not an option for Cryer Creek, according to Means, because its margins are relatively thin. What’s more, the cataloger already offers free shipping on all orders delivered within the continental United States as a way of combating slower delivery times. (Cryer Creek waits for a batch of orders for a given product, then ships the delicacy fresh from the oven. Standard delivery times range from seven to 14 business days.) So the cataloger had to find a premium with a low cost to the organization but a high-perceived value by the customer. This, too, created a challenge because Collin Street Bakery is its own supplier of raw materials, which leaves its product line narrow and fixed. “There’s only a few things you can do with pineapples and pecans,” Means jokes.