April 2007 Issue
A Chat with April’s Profile, A.G. Russell and Goldie Russell, president and CEO, A.G. Russell Knives
© Profile of Success, Catalog Success magazine, April 2007 Interview by Matt Griffin Catalog Success: When was the A.G. Russell catalog established? Goldie Russell: The mail order company was started in 1964. He didn’t actually mail a catalog for a period of time. Mostly it was space ads. I don’t know when you printed the first catalog, but I imagine that wasn’t until the ‘70s. A.G. Russell: Actually it was the late ‘60s. As soon as I had enough names to start mailing. You’d have to define catalog. I don’t know how it was defined in the late ‘60s, but I was
Cataloger Spotlight: Lillian Vernon
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
E-commerce Insights: All You Should Know About Click Fraud
Catalogers and other search advertisers are justly concerned about click fraud. Click fraud is when a person (or computer) imitates a legitimate user clicking on a pay-per-click ad, without actual interest in the ad’s target. Like Justice Potter Stewart’s definition of pornography — “I know it when I see it” — click fraud escapes precise definition. To know when a click is fraudulent, one needs to know the clicker’s internal motivation for clicking or be able to prove the clicker was an automated ’bot. Most experts agree that few individual clicks are “good” or “bad.” Instead, investigators assign quality scores that indicate the probability
Editor’s Take: Yes, There’s Plenty Anew in Ops
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
How Cabela's Tests Its SEO
Outdoor sporting goods cataloger Cabela’s tracks overall SEO program performance by comparing, week-to-week, the percentage of keywords ranked in Google’s top four, along with the percentage in the top 10. The keyword sample includes 90 “tail” (product-specific) keywords and nearly 2,000 general keywords. During and after the migration from SearchDex to GravityStream, this metric was watched very closely to gauge performance. “GravityStream caught right up and quickly blew past,” says Derek Fortna marketing programs manager for Cabela’s. The collection of additional metrics began once GravityStream migration was complete. These include the following: 3 keyword yield per page runs between eight and 20; two to
How to Test Your SEO With Rigor
Search engine optimization (SEO) is an art as well as a science. As with any scientific discipline, it requires rigor. The results need to be reproducible, and you have to take an experimental approach — so not too many variables are changed at once. Otherwise, you won’t be able to tell which changes were responsible for the results. You can glean a lot about SEO best practices, latest trends and tactics from SEO blogs, forums and e-books. But it can be hard to separate the wheat from the chaff, to know with any degree of certainty that a claim will hold true. That’s where
IndustryEye: Catalogers’ Updates, People on the Move & Letter to the Editor
Catalogers’ Updates Outdoor co-op cataloger Recreational Equipment Inc. (REI) in February said that $58 million will be distributed to its active members through its annual patronage refund based on the co-op’s 2006 sales of $1.18 billion. This is the second consecutive year in which sales rose more than 15 percent. Anyone can shop the REI catalog, Web site and stores, but only members share in the co-op’s profits. A total of 3.1 million active REI members received their patronage refunds calculated at 10 percent of their eligible 2006 purchases. Never Been Stronger In addition, based on 2006 results the outdoor retailer will dedicate
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 8-by-8 catalogs as Lillian Vernon books,”
Multichannel Brand Management: Refine Your Message
* This article is very image-heavy. For optimized Web viewing and readability, the images do not appear here. To see the print version, plus images, click on “Refine Your Multichannel Message” PDF under Related Content in the upper-right corner of this page. You must have Adobe Reader 6.0 or above to view this document. As the online channel has settled into the mainstream in recent years, multichannel integration has become more crucial for catalogers. Still, there are plenty of marketers out there who neglect, or simply fail, to maintain one voice and a cohesive visual treatment across the three key channels: catalog, Web
Prepare Your Reps
Before you work out an upsell pitch, resolve the original reason for the customer’s call. If possible, use this original impetus or the specifics of your resolution to craft your customized approach. Find out if customers would rather place their orders online. Then the rep will need to get them to clickthrough to the right links. (Or, would customers rather the rep take care of that for them?) Also decide which screens you want customers to see while reps are handling the processing end. Your reps should have experience viewing different browsers’ characteristics and should know what the different browser screens and screen sizes
Profile of Success: Sharp Management
Background: After his favorite whetstone was lost in a move from California to Arkansas in 1964, A.G. Russell struggled to find another stone like it in local hardware stores. He ended up ordering a number of the stones direct from the manufacturer. Assuming other knife enthusiasts would be interested in buying them, he sought to sell them via space ads in outdoor magazines. Soon he acquired a stock of knives and found himself in the mail order knife business, as well. Following nearly 25 years of ups and downs, Russell asked Goldie, his second wife and a former art teacher, to join the
React When It’s Sent Back
When it comes to processing returns, it’s all a matter of approach. Certainly, nobody wants a lot of returns and processing. But if you approach returns processing as more of an opportunity than a burden, you may be surprised at the results. “The biggest mistake I see with the returns process is that returns are treated as an operational procedure. But it’s an excellent marketing opportunity,” says Debra Ellis, president of Barnardsville, N.C.-based Wilson & Ellis Consulting. “It’s personalized contact with the customer that you don’t get when a customer orders online or through the mail.” The bottom line is that customers who’ve had positive
SEO Measurement and Game Plan
Test the following: 1. the title tag 2. the headline (H1) tag 3. the placement of the body copy in the HTML 4. the words in the body copy 5. your keyword prominence 6. the keyword density 7. your anchor text or internal links to that page 8. your anchor text or inbound links to that page from sites that you have influence over 9. the URL structure, including occurrences of keywords in the URL, number of directories om the URL and complexity of the URL (i.e., number of parameters in the query string) Then measure the following: 1. traffic to the page being tested 2. traffic to the site overall 3. backlinks to the page being
Special Focus: Ops & 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
Strategy: Should You Remail the Same Prospect Names Within a Season?
Remailing the same prospect lists or cooperative database segments in the same season is common. But should you remail the exact same names? This is a frequently asked question, and as you’ll see, the best mailing strategy might not be obvious. When a particular list is mailed, or cooperative database model segment is used, results are tracked by source code. If the results meet a predefined criteria — e.g., incremental breakeven, 20 percent less than incremental breakeven — you want to remail that same list or model. If 10,000 names initially were tested, it would make sense to mail 20,000 names next time, and
The New Back End
Before 2000, every aspect of back-end support operations for the direct marketing industry was tailored to meet the needs of typical catalogers and their customers. In the 1970s and ’80s, direct marketing was limited to the mailbox. The costs and requirements for information systems, fulfillment operations, inventory management and transportation functions were limited by technology and developed exclusively to meet the expectations of catalog customers. Consumer catalog orders were generated over a 12-week selling season. Inventory planning was based on historic patterns of sales and procurement, with sufficient lead time to forecast needs, buy products, transport them to the fulfillment center and fill customer orders.
Understanding Postal: Biggest Rate Case Threat? Regulatory Changes
Usually when we talk about catalogs and postal rate cases, we tend to gloss over the many regulatory details that dictate how new rates will be implemented by the U.S. Postal Service. In many cases, these regulations can have an even greater impact on catalogers than the rates themselves. Regulations can add costs to mail preparation and can detail a host of reasons for not qualifying mail for entry at the most desirable rates. Although some mailers are smart enough to read the rules the USPS proposes as its regulatory implementation plan, many don’t. For some inexplicable reason, they leave attending such details to their
Upselling, the Multichannel Way
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 equation, you’ve created additional potential value for the customer — more satisfaction with your fabulous
WEB_CS0407_Cat Spotlight, Lillian Vernon Sidebar
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
