Accurately determining what level of matchback your company needs can depend on several factors: available resources, the specifics of your contact strategy and time constraints imposed by future planning cycles, to name a few. Following are three steps that can help you select a strategy and vendors. Step 1: Identify marketing channels you’d like to include in your matchback. You get sales from several channels. Which channel’s orders should you include in your matchback, and which should you omit? You probably get orders from direct mail (e.g., catalogs, postcards, flyers, special mailings), Internet, e-mail marketing campaigns, paid search engines and affiliate marketing programs. Choose the
B-to-B
As a direct marketer, you have the advantage of measuring your successes (and unfortunately sometimes your mistakes) in ways that general advertising cannot. You meticulously test, code, track and analyze the results of your prospecting efforts. Such tactics have generated accurate metrics that helped guide you in meaningful directions. At least until recently. Today, knowing from where your orders and customers hail has become increasingly difficult. It’s the rare direct marketer who can survive in a single marketing channel, and most have at least two channels: catalog and Internet. Add retail locations, special mailings and opt-in e-mail campaigns, and the task of tracking sales and
The right steps for successful matchbacks differ only in their complexity of rules, priorities and match criteria. Not surprisingly, the rules applied get increasingly more complex the more contact pieces you have in the mail at one time. Therefore, well thought-out criteria are critical in maximizing the usefulness of the matchback process. Do gather relevant data from your matchback vendor. Include in your file appropriate sales data such as name, address and customer number. Also include all order information such as date of purchase; order total with or without shipping (depending on how you typically do your reporting); and product information if you plan
Because business-to-business (b-to-b) catalogers often deal with multiple contacts at a customer’s company, traditional recency, frequency and monetary (RFM) segmentation can present a challenge. How do you segment your housefile when some contacts regularly request catalogs, but never purchase, while other contacts make purchases without a catalog request? Alternative segmentation strategies outside RFM are possible solutions. Gina Valentino, catalog consultant and owner of Hemisphere Marketing, a Kansas City, Mo.-based catalog consultancy, offers the following tips to jump-start your segmentation strategy if RFM hasn’t proven reliable. ¥ Analyze your inquiry pool and first-time buyers. First discern where most of your inquiries and catalog requests originate, Valentino says.
Looking for industry groups that are most likely to buy your products? Following are the results of an Abacus Alliance study of b-to-b purchases in 2004: ¥ Electronics, gadgets and tools are five times more likely to be bought by officials in heavy industries. ¥ Seminars and training classes are five times more likely to be booked by government agents. ¥ Books, newsletters and magazines are 18 times more likely to be purchased by those in the healthcare industry. ¥ Cards and stationary are more likely to bought by executives in finance/insurance and healthcare. ¥ And computers are more likely to be purchased by
If yours is a business-to-business (b-to-b) or a business-to-institution (b-to-i) catalog, no doubt you have questions about effective prospecting techniques. Below are some tips on how to use your housefile as a prospecting file, such as mailing by name of individual vs. by functional title. The Income Statement One of the significant differences between a consumer and a b-to-b catalog company is the income statement. The EBIT (earnings before interest and taxes) of a typical b-to-b company ranges from 10 to 12 percent. Consumer catalogs tend to be less profitable at 3 to 6 percent. Direct selling expenses account for a large part
Ron Mis sees Galeton as the Dell Computer of the work gear industry: manufacturing and marketing its own product line to a loyal fan base. Mis, owner and president, likens Galeton’s business model to that of a true direct marketer, with cost advantages that a manufacturer enjoys when it sells its own goods direct to end-users. By selling direct in this way, Mis explains, it “makes our business truer to the original concept of a direct marketer than many who call themselves that today. Many who say they’re direct marketers actually are distributors of other manufacturers’ products,” he explains. Thus Massachusetts-based Galeton both
Every business-to-business (B-to-B) merchant should take the time to optimize its homepage space to ensure its customers have a positive experience, said Amy Africa, president of Eight By Eight, a strategic consulting firm specializing in online and offline integration, in her session “The Best of the Best: B-to-B’s Top 25 Web Sites” at the Sixth Annual MeritDirect Business Mailer’s Co-op and Interactive Marketing Conference held last month in White Plains, N.Y. Africa offered the following tips for b-to-b marketers interested in taking their Web entry pages from so-so to stellar: 1. The entry page should download as quickly as possible. “Make sure important stuff loads in
Buying data to append to your housefile can seem like a risk. How can you be sure that your investment will pay off? And perhaps more importantly, how can you be sure you’re not squandering your IT department’s limited time in uploading the appended data? Your answers to these questions will depend on how you plan to use the data you buy. Some data purchases, such as National Change of Address, have a clear and measurable return on investment (ROI). You can directly account for the expense of the data purchase and upload, then compare that expense to the new or additional revenue
Adding targeted product groupings that give your business customers more for less, or that present solutions to their needs, certainly will boost your catalog’s revenue base. Product bundles and kits easily fit that bill. An example of a bundle offer for a consumer catalog: A cookware catalog that sells kitchen knives could sell a paring knife and a filet knife but offer both together at a modest discount. A kit differs from a product bundle in that it ultimately marries products that will complement one another under one SKU and gets the customer to an end goal of some sort. Keeping with the