Direct Mail

The B-to-B Mailer’s Rules of the Road
July 1, 2000

“Compared to the business-to-business arena, consumer direct marketing is a no-brainer.” —Lee Kroll, Kroll Direct Marketing Many will disagree with Lee Kroll’s statement. But I, for one, think he’s dead on. Read on, consider all of the challenges the b-to-b marketer faces when it comes to lists, and decide for yourself. Consumer Direct Marketing The universe has roughly 110 million households. Most receive mail in a box or through a slot in the front door. They answer their own telephones. True, in the words of Chicago freelancer Lea Pierce, “All mail is opened over the wastebasket.” But, chances are pretty good that if you

Lifetime Value: Acquisition Costs Across Different Media
June 1, 2000

Two things are common to many database marketers. First, they can measure acquisition cost well (what it takes to turn a prospect into a customer), but they don’t employ a sound method of judging lifetime value (LTV). Second, they emphasize prospecting rather than retention/cross-selling/upselling. The combination of these two traits, measuring acquisition but not LTV and concentrating on prospecting rather than retention, often leads to profitability problems when testing new media. For a “traditional” cataloger, who sells only through direct mail and prospects only with rented lists, there can be a major difference in the long-term profitability of buyers from different sources. For

Continuity Marketing: Pleasures and Pitfalls
May 1, 2000

Several years ago I went to Peter, my doctor, for a routine checkup and saw some colorful boxes on the end of the counter. Patricia, the office manager and Peter’s wife, said they were dietary supplements for people over the age of 50. “Should I get them?” I asked. “I take them and I feel wonderful,” she said. “Do you and Peter get a piece of the action?” She said she did, which I had no problem with. So I ordered LifePak Prime for my wife Peggy and myself—60 little cellophane packages, each with four horse pills to be taken twice a day with

Developing a Turnaround Plan
January 1, 2000

The holiday season is over. Those record orders and sales days have finally come to an end. You are feeling optimistic about the season ending but then—reality sets in! You now find your company very short on cash. What do you do? Where do you turn? How can your company continue to operate? Welcome to the dilemmas of the mail order catalog business! Post-holiday rush is the time of year that many catalogers find they need to implement a turnaround plan to ease under-capitalization. Under-capitalization is a common problem among small- to medium-sized catalog companies, especially in times of low activity when