A four-year old food gift company co-owned by former basketball great and current New York Knicks coach and president Isiah Thomas, Dale and Thomas Popcorn launched its direct-to-consumer business in late 2004 with an e-commerce enabled Web site. With a catalog in the mail to its retail customers by fall of 2005, the direct business grew 800 percent in the first year. Paul Goodman, senior vice president of e-commerce and marketing for the young company, recently talked to Catalog Success Associate Editor Matt Griffin about what led to the decision to launch a catalog, as well as how the direct channel and retail business
Omnichannel
One of the most difficult things about operating a multichannel retail company is channel measurement and allocation. That’s what a panel of marketers concluded during a session at last week’s National Retail Federation conference in New York. “Everything in online retailing is measurable,” said Sucharita Mulpuru, senior analyst for Forrester Research, in describing some of the key multichannel marketing issues. “You know which e-mail drove a customer to your site. But you don’t really know what multichannel behavior among customers is when you don’t know where customers started a transaction and where they completed it.” At retail, however, retailers count their hits to store locations. “That’s
Continuing last week’s 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 Chadwick’s and Jessica London, outdoor sporting goods catalog The Sportsman’s Guide and home furnishings catalog Brylane home. Among Faintreny’s goals for the coming year are expanding a successfully tested Web site, doubling his product design staff and cutting inventory turn. Catalog Success: How’s the catalog marketing economic climate shaping up for 2007? Eric Faintreny: For apparel retail in particular, 2006 didn’t end very well. I suspect we’ll have more of the same in 2007. It’s an unpredictable
In light of the forthcoming postal rate increase, some catalogers, such as children’s apparel merchant Children’s 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: What’s your take on the catalog marketing economic climate? Tracy Schneider: We’re seeing in our business that the catalog is beginning to take a back seat to the Web site. If we’re 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
I’m in the process of digesting an insider’s 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 there’s never been a greater time to be in our industry. So if you’re a pure-play Internet marketer, there’s never been a better time to increase your business by starting a catalog. If you’re 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, I’m firing off some more tips to offset any postal increase, anytime. Use them in good health.
9. Get closer with your letter carrier: If you’re 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 marketers’ 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. “In an ideal B-to-B multichannel marketing environment,” says George Hague, senior marketing strategist at Mission, Kan.-based catalog consultancy J. Schmid and Associates, “sales and marketing vice presidents should discuss how they’re going to contact
Continuing the discussion started here in December, here are some more tips to offset any postal increase, anytime.
6. Drive ’em 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 don’t 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 hasn’t been good to small booksellers — 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 today’s 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 children’s 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 children’s books and toys, and