Valuations & Acquisitions: For Smaller Mailers, 2008 Forecast Calls For Pain

While it may be too late for those who already sailed into the iceberg, prudent multichannel merchants still have time to ratchet up their businesses. But if you have some flexibility, do yourself a favor and take the time to improve your key metrics, such as online marketing.

Online spending this year is up 20 percent. If the mail arriving in the mailbox is driving online purchasing, then mailers need to mail more efficient catalogs, even if that means mailing fewer pages. Helman, for one, prescribes a familiar medicine to marketers: Mail smarter. Prospect with smaller, more economical catalogs using the 20 percent of your products that generate 80 percent of the sales. Drive as much revenue to your Web site as possible. E-mail special offers. Send postcards with special e-mail offers. Get people online and off the telephone, and get more efficient in your contact and fulfillment centers.