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The 2nd Catalog Success Latest Trends Report on Key Issues (January 2008)

We bring you our exclusive new Catalog Success Latest Trends Report, the second quarterly joint venture with multichannel ad agency Ovation Marketing. This one focuses on the key issues in the catalog/multichannel business. As with our inaugural report last October, this survey contains a statistical analysis of a questionnaire we sent to the Catalog Success e-mail list in November. The responses came from 80 B-to-C and 45 B-to-B catalogers. You can click on the separate B-to-C and B-to-B charts below, as well as the cumulative chart. Some percentages don’t quite add up to 100, due to rounding.

The management of catalog businesses large and small depends on order curves. Yet order curves are affected by several different factors — mail delivery, the weather, time of year, etc. — all of which affect delivery times. This month, I want to touch on the factors that affect these curves, because your actions have the most influence over how soon orders start flowing after the initial mail date and when order levels will peak. Typically, orders start flowing in seven to 10 days after the initial mail date based on a normal five-day mail distribution pattern. If the initial mail date is

The clock already may have struck midnight on postal reform, but that doesn’t mean your catalog has to turn back into a pumpkin. There’s no need to strip it down in ways that sabotage branding, creativity and, most importantly, sales. Even within the design and financial confines of today’s postal rates and structure, the dream of an effective, financially viable catalog doesn’t have to be a fairy tale. Through postal reform the U.S. Postal Service is developing a more accountable rate-making structure, as most catalogers should be aware by now, replacing irregular rate hikes with more predictable and regular adjustments. It’ll take serious housecleaning

In the IndustryEye section of this issue on pgs. 12-13, you’ll find our second quarterly Catalog Success Latest Trends Report, a benchmarking survey we conducted in late November in partnership with the multichannel ad agency Ovation Marketing. This one focuses on key catalog/multichannel issues, and we’ve included most of the charts there, so I encourage you to take a look. You’ll be able to find some charts only on our Web site due to magazine space limitations. We also didn’t have the space to include the numerous comments that you — our readers and survey respondents — wrote in response to two of the questions.

In this second of my two-part series, I’ll examine how the shape of your catalog and mail quantities effect on U.S. Postal Service processes may influence future rate increases. I’ll also provide some tips for preparing yourself now for these increases. First, I don’t expect the USPS to eliminate the rate distinction between letters and flats. That said, the USPS will continue on the road to having shape reflected in its rate structure. Thus, the weight of a mail piece will continue to be less important than in the past. The increased reliance on shape in the last rate case reduced the effect of

In the first of a two-part series examining the recent passage of the postal rate-making reform law and its effect on catalogers, this week I’ll provide background on the U.S. Postal Service’s rate-making policy and how the new postal reform law will benefit direct marketers. First, let’s examine why and how catalogers found themselves on the short end of the stick following the implementation of new postal rates last May. Way back in 1990, the USPS asked the Postal Rate Commission (PRC) to recommend postal rates that would begin to reflect the processing-cost differences caused by the shape of the mail. The least

If you don’t know it yet, the U.S. Postal Service, that wonderfully efficient government-sanctioned monopoly we all know and “love,” is planning to raise our postal rates again in 2008. Many still are trying to recover from the devastating blow it dealt us in May of this year. Now it wants to hit us again. To me, this is inconceivable and just plain deadly stupid. But then again, that’s what you get when you let big government run commerce.
I’m not here to bash our government, or even the USPS, but we need to scream, not whisper, for the next rate case

Reading retail sales, housing sales and consumer confidence reports the past couple of weeks while watching the stock market sink, I’ve become quite worried about the outlook for the holiday season for catalog/multichannel marketers. Retailers collectively reported their worst October in 12 years, and a Conference Board report last week said consumer confidence dropped in early November to its lowest level since Hurricane Katrina triggered soaring oil prices two years ago. Meanwhile, recent reports from the National Association of Realtors showed sales of existing homes had plunged to their lowest level in nearly a decade. None of this bodes well for catalogers. So

Catalogers spend loads of time and money acquiring one-time buyers. But there’s more you can do to get these individuals to purchase again. Typically, fewer than half of your first-time buyers make a second purchase. With the high cost of mailing catalogs today coupled with lower response rates, most catalog companies acquire new buyers at an incremental loss. Catalogers must be willing to make an investment in acquiring a new buyer to grow, knowing the payback will come sometime in the future. The amount of time to payback the investment — normally one year — can be reduced by developing a strategy to