AB-to-B catalog marketing staff had a problem. Its housefile count was experiencing double-digit growth, but its response numbers were shrinking. How can these two metric trends coexist? Internet-savvy consumers, who often operate small, home-based businesses, buy product via this catalogerโs Web site. These small office/home office (SOHO) businesses didnโt need to repurchase the way this catalogerโs traditional business customers typically did. So, housefile response fell, while marketing expenses went up. If you suspect this is happening to you, hereโs how to fix the problem, improve your response and reduce marketing costs. Begin by analyzing your housefile for SOHOs and consumers. Then follow these steps: 1. Run address
Shipping
Welcome to our groundbreaking benchmark survey on catalog/multichannel mailing and marketing practices! This is a joint venture with multichannel ad agency Ovation Marketing, and the first in what will be an ongoing, quarterly series of surveys covering different aspects of the catalog/multichannel business. The survey contains a statistical analysis of a questionnaire we sent to the entire Catalog Success e-mail list in late August. The first two questions screened out any noncatalog decision makers. That left us with completed surveys from 175 catalogers โ 97 consumer, 78 B-to-B. Click on any or all of the sets of responses under โRelated Content,โ to the right.
Here at Catalog Success, weโve spent the better part of the past two to three months putting together the first of what will be an ongoing, quarterly survey of catalog/multichannel business practices. Weโre conducting these surveys in partnership with the multichannel ad agency Ovation Marketing. A portion of the results of this, our first benchmarking report โ which will focus on mailing and marketing issues โ will be showcased in the October (print) edition of our magazine. Also beginning in October, weโll feature all the results on our Web site, where youโll be able to view the overall findings, as well as separate
In the September (print) issue of Catalog Success, I discussed the opportunity catalogers and multichannel merchants have to aggressively pursue the older end of baby boomers, some of whom are now in their 60s. In Portland, Maine, on Sept. 20 for the fall NEMOA Conference, I was taken by the opening presentation given by Claire Spofford, senior vice president and chief brand officer for the Orchard Brands unit of Golden Gate Capital, (formerly AppleseedโsTopCo). Having joined Appleseedโs earlier this decade to bring a retail and brand accent to the mature womenโs apparel cataloger, Spofford now presides over a thriving multititle multichannel business thatโs as
As a consultant, one of the things I love to do when touring a B-to-B catalog company is to take a look at the customer order just before it gets sealed. I usually make a point of doing it during the first tour of the operation. What I find usually astounds me.
Most often, standard marketing materials โ a catalog, a flyer or two, maybe a thank-you card or survey โ are tossed helter-skelter in the bottom of the box, covered by the items being ordered and the void fill of choice. Imagine what happens when customers open that box presuming, of course,
Rule of thumb: A catalog company canโt break even on the initial orders generated from prospects. Catalogers must be willing to invest to acquire new buyers to grow, or at least maintain, their 12-month buyer count. This month, Iโll cover the cost to acquire a new buyer, why itโs important to invest in prospecting and why you shouldnโt expect to break even on the initial order. Catalogers tell me they donโt want to prospect below the incremental break-even point. Thatโs a nice goal, but itโs not realistic. Todayโs economics, such as postage costs, paper prices, etc., combined with lower response (an ongoing trend
The AOS home products catalog is in a tough position when it comes to prospecting for new customers. Why? Half of its business comes from Medicare recipients, and the federal government has strict parameters on how and when it can procure lists. โIt makes it difficult to drum up new business,โ explains Lisa Juenger, former operations manager for AOS catalog. โMedicare has very stringent guidelines, and we have to follow them to the nth degree.โ The Earth City, Mo.-based AOS is a direct-to-patient catalog for ordering home care medical products including ostomy, nutritional supplements, incontinence and diabetic supplies. The current catalog runs 120 pages and will
Just about all catalog merchants in America should have gotten more than their fill of news, comments and opinions on the meaning, impact and consequences of the 2006-2007 postal rate case. If you have no idea what Iโm referring to, perhaps youโd be better off finding a new career. By now, you shouldโve learned how to adjust your business marketing practices to accommodate the recent round of horrendous catalog postage increases. If you havenโt, then youโre about to learn some difficult, unforgiving lessons in trying to make a living in a hotly competitive marketplace. Your focus now must be on the future. Not the future
People On the Move MCM Electronics: Phil Minix has been named president of Centerville, Ohio-based B-to-B catalog distributor MCM Electronics. A member of the Catalog Success editorial board, Minix is a 12-year veteran of the catalog/direct business. He most recently served as president of Astral Direct. Prior to that, he worked at Reiman Publications and J. Schmid & Assoc. Sharper Image: Andrew P. Reich has been named EVP of merchandising. James Sander has been named SVP, general counsel and corporate secretary. Eddie Bauer: Neil S. Fiske, the head of Limited Brandsโ Bath and Body Works, has been appointed president and CEO. Fiske, 45,
With the Internet transforming even the smallest catalogers into worldwide marketing companies, virtually every business at some time or another will be forced to handle international orders. While the process certainly is more elaborate than it is for domestic shipments, itโs not rocket science: Do your homework, avoid unexpected costs. โToday, itโs relatively easy to market and ship overseas,โ says Richard Miller, managing partner at North Chatham, Mass.-based Market Response International, an international direct marketing consulting and research firm, and also executive director of the International Mailersโ Advisory Group. Mailersโ ability to communicate quickly with customers, acknowledge receipt of orders and address problems โhas become