One of the most difficult things about operating a multichannel retail company is channel measurement and allocation. Thatโs what a panel of marketers concluded during a session at last weekโs National Retail Federation conference in New York. โEverything in online retailing is measurable,โ said Sucharita Mulpuru, senior analyst for Forrester Research, in describing some of the key multichannel marketing issues. โYou know which e-mail drove a customer to your site. But you donโt really know what multichannel behavior among customers is when you donโt know where customers started a transaction and where they completed it.โ At retail, however, retailers count their hits to store locations. โThatโs
Omnichannel
Continuing last weekโs look at challenges facing catalogers in the new year, Catalog Success spoke with Eric Faintreny, chairman/CEO at multititle cataloger Redcats USA, which mails the apparel catalogs Chadwickโs and Jessica London, outdoor sporting goods catalog The Sportsmanโs Guide and home furnishings catalog Brylane home. Among Faintrenyโs goals for the coming year are expanding a successfully tested Web site, doubling his product design staff and cutting inventory turn. Catalog Success: Howโs the catalog marketing economic climate shaping up for 2007? Eric Faintreny: For apparel retail in particular, 2006 didnโt end very well. I suspect weโll have more of the same in 2007. Itโs an unpredictable
In light of the forthcoming postal rate increase, some catalogers, such as childrenโs apparel merchant Childrenโs Wear Digest, are cutting catalog circulation and adding Web-exclusive promotions. This enables them to better serve an increasingly multichannel customer base. Tracy Schneider, vice president of marketing and operations for the Richmond, Va.-based cataloger, explains the rationale behind this decision, as well as a new promotion that shows promise for the company. Catalog Success: Whatโs your take on the catalog marketing economic climate? Tracy Schneider: Weโre seeing in our business that the catalog is beginning to take a back seat to the Web site. If weโre just looking at print
Nearly 40 percent of consumers this holiday shopping season reported changing their shopping venue based on which merchant best met their needs, according to a recent survey released by the accounting firm KPMG. According to the survey, 81 percent of consumers said they shopped wherever their desired items were in stock, while 75 percent said a simple return policy influenced their purchasing decisions. Other data revealed by the survey: * 5 percent of shoppers said they moved a larger portion of their holiday budget to Internet shopping in 2006, compared with 6 percent in 2005; * 19 percent of respondents cited price as influential
Iโm in the process of digesting an insiderโs report by Universal McCann that projects growth for direct mail and the Internet in 2007 to be 7.5 percent and 15 percent respectively.
This means that direct marketing growth is once again estimated to outpace other areas of advertising.
This forecast further reinforces my opinion that thereโs never been a greater time to be in our industry. So if youโre a pure-play Internet marketer, thereโs never been a better time to increase your business by starting a catalog. If youโre already a cataloger, according to a recent Web poll on CatalogSuccess.com, 76 percent of you saw
Continuing the discussion started here a few weeks ago, Iโm firing off some more tips to offset any postal increase, anytime. Use them in good health.
9. Get closer with your letter carrier: If youโre not using a printer who does destination entry programs, then find one quickly. With destination entry your printer trucks your catalog closer to the bulk mail centers and sectional center facilities. The end result is that your mail has travels a shorter distanceon its way to the end reader (your customer). The cost for trucking will be less than the discount from the post office. The end result: you save
Multichannel marketing, the catch-all phrase that typically groups consumer marketersโ catalog, Web and retail channels, often represents a different scenario for B-to-B catalogers, with diverse marketing channels, business practices and goals. Coordinating the assorted multichannel B-to-B mix of outbound telemarketing, field sales, tradeshows and others with catalog and Web channels is a challenge that often requires extensive cooperation between sales and marketing departments, regardless of the channels involved. โIn an ideal B-to-B multichannel marketing environment,โ says George Hague, senior marketing strategist at Mission, Kan.-based catalog consultancy J. Schmid and Associates, โsales and marketing vice presidents should discuss how theyโre going to contact
Continuing the discussion started here in December, here are some more tips to offset any postal increase, anytime.
6. Drive โem on in. Can you get away with not mailing a catalog? How about testing a miniature catalog, or even a postcard designed to drive customers to your Web site. But donโt just implement it without knowing its impact; test it meticulously. (For more on miniature catalogs, watch for a special feature coming the February print edition of Catalog Success.)
7. Prospect with your best foot forward. Consider creating a smaller catalog just for prospecting purposes. Place your best selling products in it (from our squinch
The past decade hasnโt been good to small booksellers โ catalog or retail. Soundly beaten in price, selection and convenience by volume-driven big box retailers like Barnes & Noble and Borders, as well as online retailers such as Amazon.com, many of todayโs smaller booksellers are barely hanging on. But at least one small cataloger has found a way to reinvent itself and thrive. Chinaberry, a two-title cataloger of childrenโs books, educational toys, and spiritual and inspirational gifts, has found its own path to modest growth over the past couple of years. The company mails a namesake catalog that offers childrenโs books and toys, and
Direct mail spending rose 7.5 percent to $60.6 billion in 2006, according to an estimate in a recent whitepaper released by marketing consultancy Winterberry Group. This follows 7.4 percent growth from 2004 to 2005. Winterberry Group further estimates that total direct mail spending will reach $73.6 billion by 2009, reflecting a compound annual growth rate of 6.8 percent per year between 2005 and 2009. Overall catalog spending for the same period is expected to be slightly lower, at 5.7 percent. In addition to these stats, Winterberry Group identifies several trends it anticipates over the next 12 months: * Complex, high-volume multichannel campaigns will