As you can see, the contents in this month’s issue are quite operations-heavy. We’re always trying to balance our coverage, and with a more general focus for our big double-issue next month, as well as a broadly focused June issue, we’ll turn to technology-related issues in July. Perhaps the most interesting thing we found in putting this month’s issue together was that, although there typically aren’t a lot of drastic changes in the whole area of catalog/multichannel operations, fulfillment and management, there are nevertheless noteworthy changes taking place. For instance, take a look at consultant Liz Kislik’s feature on necessary changes in catalog order takers’ approach
Order Fulfillment
Upselling, the Multichannel Way It’s Time to Master the Phone/Online Upsell By Liz Kislik Since the 1980s, when the majority of catalog orders began shifting from mail orders to the telephone, it’s become standard practice to not just take phone orders efficiently, but also to incorporate the upsell as a regular part of call center operations. But it’s 2007, and the typical catalog order isn’t necessarily over the phone anymore. Consider this scenario: Your customer calls to place an order and everything in the process goes smoothly. Your order taker follows standard practice and offers one or more upsells. In the classic
Head: Lillian Vernon: Back to the Future Lillian Vernon’s year-plus road to recovery has seen a mix of return-to-roots and get-with-the-times changes. Many have worked, as president/CEO Mike Muoio reports. Here are three additional improvements the company has made: 1. Change the catalog size to preserve the brand. In 2004, Lillian Vernon changed the trim size of its catalog from its traditional 8-inch-by-8-inch format to an 8.5-inch-by-11-inch size. But the change had almost no impact on sales, and since the brand had been associated with 8-inch-by-8-inch books for more than 40 years, Muoio and his team reverted back to the old format last October. “People recognize
Having topped out at $287 million nearly six years ago, Lillian Vernon’s sales have been falling ever since; it’s expected to finish out its fiscal year at about $170 million. But the bleeding could stop soon. A public company until 2003, the general mer-chandise cataloger was sold to investment conglomerate Direct Holdings, led by media company Zelnick Media. But despite an aggressive game plan to broaden Lillian Vernon’s reach, Direct Holdings’ initiatives largely backfired. Direct Holdings bailed out in May 2006 and sold Lillian Vernon to investment firm Sun Capital Partners, which installed former Miles Kimball CEO Mike Muoio to turn the company
We all recognize that inventory usually is one of our largest assets. Yet many of us don’t give it the importance or priority it deserves. Inventory management impacts almost every area of the company and can help contribute substantial hidden profits or losses depending on how it’s managed. The effect of poor inventory management often is hidden when business is good, and although quite evident when business is bad, businesses don’t have the resources at that point to address the issues. Unfortunately, this cycle is repeated far too often. Establishing a sound inventory management process within the ongoing company culture will cushion
As the holiday season orders pour in, catalogers at this time of year find themselves seeking ways to maximize the use of their contact centers. One potential solution for peak ordering periods worth considering is voice over Internet protocol (VoIP), which enables catalogers to increase the size of the contact center at will, or even hire additional reps to work from their homes, when physical space in their existing contact center runs tight. VoIP allows contact center managers to deliver both phone service and broadband Internet connectivity to customer service reps (CSRs) along the same connection. Voice and data both are converted to packets of
I’ll keep this column brief (I know you want this week to end. I can’t wait for the advanced stages of tryptophan sleepiness to set in after the turkey is done). Want to add some revenue before the end of the year? Try the following:
1. Add an extra mailing in before the end of the year. Try it this way: After your last mailing is complete, mail one more catalog just to your hotline buyers, those who just responded from your last mailings of the year. If it’s too late to get your printer involved, grab some of your bounce back and office copy
As the holiday season approaches you’re no doubt battening down the hatches for the season that is both the bane and blessing of every business. According to the National Retail Federation, one-fifth of all U.S. retail sales are holiday sales and with a 5 percent increase expected in 2006, it’s sure to be a busy time for any catalog business. It’s in this pre-holiday calm before the storm that planning, creativity and smart investments will help you get the most out of the season. Here are three tips to help multichannel merchants do just that: 1. Cut down on undeliverables. Whether it’s crazed online
Problem: The order entry system for My Grandma’s of New England routinely transposed data from one order to another, causing shipping errors and other assorted problems. Solution: The company implemented a new order entry system. Results: Shipping errors were virtually eliminated. My Grandma’s of New England had an order entry system (OES) that was wildly unstable, often causing data errors that resulted in shipping methods from one order being applied to another order, disappearing entirely or customer greetings placed on an order to end up on the wrong order. So last November, the company implemented Morse Data’s InOrder OES to reduce shipping errors caused by its legacy
Long gone are the days of relying solely on United Parcel Service (UPS) or the U.S. Postal Service (USPS) for all your small package ground delivery needs. Nowadays, most mailers are not only turning to a mixture of different carriers, but they’re also better able to negotiate carrier contracts than ever before. Rick Collins and Tim Geiken, both managing directors at transportation and shipping consultancy AFMS Inc., offered during a session at NCOF several negotiation pointers to catalog shippers when working out small parcel shipping contracts with carriers. Among these, -Understand your business better than your carrier does. -Look at your previous contracts and how well