Direct Mail

Average response rates for catalog mailings increased this year, according to the recently released “2005 Response Rate Report” from The Direct Marketing Association (DMA). The average response rate for catalogers so far this year is 3.67 percent. This compares favorably to 2.23 percent in 2004, and 2.41 percent in 2003. However, The DMA cautions that this year’s increase may be an anomaly. A few catalog responders to the response rate survey reported above-average rates, possibly skewing the overall results. Other catalog-related findings: ¥ 1.8 percent: median cataloger response rate; ¥ $2.41: revenue per contact; and ¥ 57 cents: promotional cost per contact. Source: “2005 Response Rate Report,” The Direct

In the old days of cataloging, a two-step acquisition was defined as a prospect converting to a customer after he or she responded to two different marketing efforts — thus taking two steps. Step one was to respond to a compelling advertisement to get a catalog. Step two was to respond to the catalog by placing an order. With two-step acquisition, the broad advertising net usually was cast in a trade magazine, and prospective customers replied by phone. Tracking costs for such acquisitions was simple, as the choices for the first step seemed finite, and the conversion meant loyal, long-term customers. In

At Lett Direct, we sometimes conduct studies to determine how quickly companies fulfill catalog requests (i.e., inquiries). While some catalogers do a great job turning around requests, many don’t. Unsolicited (and solicited) catalog requests can be extremely valuable, and a high percentage convert into buyers. Therefore, inquiry fulfillment needs to be monitored more closely and given a higher priority. This month, I’ll discuss the importance of inquiry fulfillment and provide results of a recent study we conducted. Unsolicited catalog requests come from many sources. We don’t always know their origins, but we do know inquiries are “diamonds in the rough.” If someone takes

I’ve been in direct marketing for 40 years. I got into the business when direct mail was king and off-the-page advertising was queen. Little telemarketing was done. Certainly there was no DRTV. And e-mail was just a gleam in the eyes of a select few. Today, direct mail is still the workhorse of direct marketing — the most efficient way for a marketer to reach those potential customers with the right demographic and behavioral patterns. As a result of our starting the newsletter WHO’S MAILING WHAT! (now Inside Direct Mail) and running it for 15 years, I’d estimate that more than 200,000 mail packages

The Hacker Group/FCB, a direct marketing agency in Bellevue, WA, produces hundreds of millions of direct mail pieces each year. In the past four years it has consistently reduced its production costs resulting from error. How did they do this? Gayl Curtiss, executive vice president and general manager, shares some of her strategies. Many of her tips directly translate to catalog production. • Award employees bonuses that are directly tied to error-free performance. When compensation is tied to performance, employees are encouraged to pay extra attention to their work to eliminate mistakes. Employees should have clearly defined written roles and responsibilities, so they know

Testing is the key to direct marketing success. The key, however, is knowing what, how and when to test. While testing is important, it’s not always cost-effective. This month, I’ll discuss how to structure tests, how to read the results and when it makes economic sense to do so. When creating test panels, you’ll need to weigh a number of factors. The method that’s mathematically most accurate may not be cost-effective. Conversely, the most cost-effective method may produce skewed results. And in some cases, it may not even make economic sense to test. The point is to determine the economic benefit from

Periodically I get phone calls from fledgling entrepreneurs who have great products and want to get into direct mail. “What else have you got?” is always my first question. “Wha ... what do you mean?” “What other products?” “This is my only product.” I say, “In the words of consultant Susan McIntyre: ‘The key to long-term profitability is to build a large house list of repeat buyers.’ That’s true for any direct marketing business—catalog or otherwise.” “But don’t you want to hear about my product?” “What does it sell for?” “Uh, $20, maybe.” “Test it in space,” I tell the person. “Take a small

Lillian Vernon began selling personalized belts and handbags with a black and white ad 50 years ago. Now, the company offers more than 6,000 items through nine catalog titles and a growing Web business What do Katie Couric, Arnold Schwarzenegger and Hillary Clinton all have in common? It’s not their political affiliations. Think porcelain Easter baskets and personalized bean bag chairs. Now you get the picture: These celebrities are among the 23 million people who have shopped the pages of Lillian Vernon’s catalogs. The namesake business Lillian Vernon launched in 1951 on the kitchen table of her small, Mount Vernon, NY, apartment has

Early in my freelance copywriting career, I was hired by The Bradford Exchange to launch Plate World, a magazine for collectors of limited-edition plates. Started by J. Roderick MacArthur, son of John D. and Catherine T. MacArthur (as in the foundation that bears their name and the people who made zillions selling mail order life insurance), the concept of The Bradford Exchange was to create a kind of stock exchange for collectors’ plates. It persuaded collectors that if they bought plates at the issue price, they stood a chance of making money in the so-called Secondary Market, which is pretty lucrative with some

Producing and mailing a catalog can be a most expensive undertaking. With alternate media you can achieve some of the same goals as with a print catalog: Testing, driving customers (new or existing) to your e--commerce site and building awareness/loyalty. Speaking at the Annual Catalog Conference in June, Kevin Kotowski, of Olson Kotowski & Co. in Los Angeles, named some top reasons catalogers use alternate media, or “non-catalog pieces:” 1) cheaper prospecting than with full-sized catalog drops, since most alternate media are cheaper to produce and mail; 2) building and strengthening your customer relationships with name and product awareness; 3)