Prospecting

After a year of sales and profit declines, plus-size-apparel retailer Charming Shoppes Inc. said yesterday that it would turn to American Idol to draw customers to its Lane Bryant clothing shops. The Bensalem-based company, whose 2,121 stores also include Fashion Bug and Catherines outlets, said it planned to spend $4 million on Lane Bryant ads during the nationally televised talent competition in the coming weeks.

To lure value-conscious shoppers away from competitors' outlet stores, upscale department store Bloomingdale's plans to launch four outlet stores this summer and fall.

Spend $3 million on a Super Bowl ad and it better drive viewers to more efficient marketing channels. Dockers' "Wear the Pants" Super Bowl blitz drove consumers into every communication channel available.

The past year was extremely difficult for catalog companies, and many firms elected to mail deeper to their housefiles instead of prospecting for new buyers. Catalogers, however, need to start prospecting again. File counts can’t continue to decrease, or sales will continue to decline. Catalogers should now cautiously increase prospecting levels to build for the future. As we emerge from the recession, companies that continue marketing and mining for new buyers will be in much better position to take advantage of the rebound.

Pop-up Stores Attract New Shoppers for Target; Staples' Goal-Setting Program Brings Retailer Prospects; Untapped Networks.

In late November, we surveyed the All About ROI editorial board members and other marketing insiders to gauge their views on the year ahead. At press time on the eve of the 2009 holiday homestretch, with their hopes for a better sales outcome than 2008 looking modest at best, few saw an especially bright light shining by December. Instead, many settled in to make the appropriate adjustments for reduced demand.

Wish Lists Spur Customer Acquisition for Guitar Center; Holiday Promotions Bring Prospects?to eBags; Walgreens/L.A. Times Help Santa Help Them

Chico's in TV, Magazine, Email Promo Blitz; Handbag E-Retailer Relies on Facebook Fan Page for Leads; Maryland Square Prospects With Free Shipping Offer.

There's a cost associated with acquiring new buyers through print media. Marketers who rely heavily on catalogs need to invest in converting prospects to buyers (one-time purchasers) and buyers to customers (two-time or more purchasers). How much you're willing to pay for new buyers depends on what you can afford, how fast you want to grow and the lifetime values of the buyers acquired.

The housing market and employment levels are among the biggest factors economists monitor to get a fix on the state of the economy. Overall retail sales is the other major bellwether, particularly as we head into the fall and holiday seasons. At this point, it's tough to get overly optimistic about an economic recovery for 2009. But amidst the negatives, there are some positive signs on the horizon worth tracking and reacting to.