Identity theft is one of the fastest-growing crimes in America, affecting hundreds of thousands of consumers every year. As an online merchant, you’re more susceptible than ever to being an unwitting accomplice to this crime by becoming the target of spoofing: a practice in which fraudsters emulate your Web site or e-mail, or otherwise represent themselves as your company. Moreover, by inadequately protecting your customers’ personally identifiable information (PII) and credit card numbers from cyber-thieves, you may be unknowingly contributing to the alarming rise in consumer identity theft in this country. In the following article, I’ll focus on ways you can reduce your chances
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By Tim Litle How to shop for a service bureau, understand processing charges and much more. You know that you must accept Visa and MasterCard; most catalogers wouldn't be in business without them. And you know that credit card processing can be expensive, typically costing more than 2 percent of sales. But you probably don't know if your payment processor is doing a good job, or if you're getting value for your money. And what you don't know might be hurting your business. But a little information goes a long way. This article will provide ways to evaluate
A computer programmer visited Guess.com last year to look for jeans. Before entering his order, he keyed into the site’s address bar a string of characters, and up popped about 200,000 of Guess.com’s customer names and credit card numbers. His selection of characters wasn’t random. Rather, the code he keyed in is well-known among programmers, and plugging it in is called an SQL (Structured Query Language) injection attack. In June, Guess.com settled for an undisclosed sum with the Federal Trade Commission (FTC) on charges that it misled consumers by stating in its privacy policy that it protected consumer data when, in fact,
You know that you must accept Visa and MasterCard; most catalogers wouldn’t be in business without them. And you know that credit card processing can be expensive, typically costing more than 2 percent of sales. But you probably don’t know if your payment processor is doing a good job, or if you’re getting value for your money. And what you don’t know might be hurting your business. But a little information goes a long way. This article will provide ways to evaluate a payment processor, and tips to help you understand your options and make sure you’re getting the biggest possible bang
Consumers are nervous about how much of their information is readily available to anyone who knows how to access it. We’re not talking just about identity theft, which is a criminal offense, but about legal marketing practices. Indeed, consumers are being deluged with direct marketing offers pitched at them by mail, e-mail and telephone. Think about it from their viewpoint. While you think you’re helping consumers by making just-in-time offers to satisfy their needs and desires, they’re thinking: “Whoa! Can we get a little privacy over here?” Just how much do consumers care about this issue? A lot. For example, 69 percent
E-mail marketing has undergone a major transition during the past couple of years. A survey conducted by The Direct Marketing Association (DMA) found that two-thirds of U.S. companies claimed an increase in their sales in 2001 as a result of using e-mail marketing. Catalogers who use this marketing vehicle seem to do particularly well: Based on a June 2002 report from DoubleClick, catalogers’ e-mails have the highest click-through rates of any industry — 9.5 percent. One of the main reasons e-mail marketing is enjoying success is the increased quality of the e-mail lists available. While there continues to be considerable controversy about how
“Do-not-call lists are here. Do-not-spam regulations are being introduced. Do-not-mail legislation may not be far behind. The privacy issue may be the biggest concern the direct-to-consumer industry has as it moves forward.” These were the sobering words of Ben Perez, president of the Millard Group and chairman of The Direct Marketing Association’s (DMA) 11th Annual Catalog-on-the-Road Conference, which was held in Boston last month. “The direct marketing industry is on the government’s radar screen regarding privacy,” he continued, “and the attention is at a level that shouldn’t be ignored.” In related news, The DMA last month announced new initiatives to help direct and
As the difficult economy soldiers on, undoubtedly you’re looking to improve sales from all channels, including your Web site. But how will you do so? Amy Africa, president of Creative Results, an online research and consultancy based in Williston, VT, offered attendees of last fall’s conference for the New England Mail Order Association the following tips for e-tailers who want to increase Web traffic and generate more sales. 1. Make your site load fast. The average site loads in 46 seconds on a dial-up modem, but most people decide if they’re going to stay on a site within eight to 12 seconds. So they’re
As I sit down in mid-August to write this edition of Editor’s Notes, I’m thinking back to last August, specifically to a time before terrorists forever altered our sense of tranquility. Now I’m not one to wax poetic, but I am remembering fondly the days when TV show “survivors” were top of mind instead of all-too-real Middle Eastern terrorist cells and ominous-sounding security measures here at home. I was in New York City recently, and I paid my respects at Ground Zero. The swift clean-up operation going on there is a true testament to our nation’s “can do” attitude. As I stood there
Long after the Internet bubble burst, e-commerce is alive and well for direct marketers and is the fastest-growing direct commerce sales channel. Catalog companies have three options for managing the dynamic online marketing environment. An Independent Adjunct At one extreme, a catalog’s e-commerce operation can stand alone as a totally independent adjunct to the traditional enterprise. Although it may share some of the same merchandise, it also may feature items that are not in the catalog. When it does offer catalog items, they may be only a subset of the full catalog line. In this extreme scenario, no effort is needed to
A good list-hygiene strategy can help ensure that your increasingly costly promotions will reach only those people who are actually at the address to which you’re mailing and can help you avoid sending duplicate catalogs. Today, many catalogers use state-of-the-art models and have invested millions of dollars in operating systems that generate data used to run their businesses. But keep in mind that these models and data will be only as good and dependable as the customer information loaded onto them. Andrew Kapochunas, leader of business development and strategy for sales and marketing solutions at Dun & Bradstreet, notes that data hygiene now
In a perfect workflow, catalogers never leave the digital space. Digital photography is placed into digital files using page layout software. Then, catalog production personnel release files using one of several online transmission options. Finally, they review and approve using digital proofs, send through to computer-to-plate and finally to the press. Soft proofing completes the digital workflow, replacing some, if not all, of the hard digital proofs. Soft proofing easily can be adopted at the online level and immediately can begin to save catalogers time and money. Two categories usually fall under the general heading of soft proofing: online proofs and collaborative, Web-based
Increased competition and a sluggish market have produced a scenario in which catalogers must embrace and preserve their customer base. Indeed, creating loyalty and optimizing each customer’s profitability are the key ingredients to growing your corporate revenue and ensuring your company’s long-term health. But nurturing customer relationships is no small feat. With customer bases in the hundreds of thousands—or even in the millions—determining the amount of attention to pay to each customer interaction can be daunting. The task leads many business executives to implement an advanced technology infrastructure and targeting strategy for each communication or transaction. However, developing that ability can be an
After faltering at the starting block, online procurement might have found the magic combination to finally make businesses sit up and notice: indirect buying. And PC giant Dell Computer is leading the pack. Businesses have resisted online buying services until indirect e-procurement arrived on the scene mostly because open buying was slow and perceived as less-than-secure. E--procurement is the purchasing of support goods and services through an online, private customized catalog. The catalog contains products a company is interested in, and has approved for employee purchase, as well as a company’s negotiated pricing. According to AMR Research, the worldwide market
Attempting to market across multiple channels, catalogers have been using myriad marketing methods to drive sales to particular channels and across channels. While the promotions can be effective, they are hard to track. Netcentives, a loyalty and e-mail marketing solutions company, is offering catalogers a new way of following customers’ buying habits, creating more effective marketing campaigns and encouraging multi-channel shopping with its program Retail Rewards. Customers join Retail Rewards by registering their credit card with their favorite catalogers to receive rewards for their purchases in any channel. Catalogers who join the program create a customer credit card registration page on their sites.
Finding fresh sources of names to mail has always challenged catalogers. Lately, it’s become more competitive as catalogs all seem to mail into a finite universe of buyers. But catalog list brokers say they’re having some success helping their clients break new ground using tools from non-catalog compiled lists and publication files. Not only is the Internet a research tool for mailers and brokers, but it also is a developing source of new names. Read on for insights into the state of the catalog list market from five list professionals: • Steve Mickolajczyk, president, Brokerage Division, Catalyst Direct Marketing; • Donna
There’s nothing like having a billionaire for a neighbor. Especially one that throws a little business your way, like Microsoft did when it named Multiple Zones International (MZI) its chief supplier of computer hardware, software and services. The contract is one of many changes taking place at MZI. Since moving online in 1995, MZI has seen fast growth in revenue and transactions, creating a $115-million company. What began in 1989 as a three-title catalog company with PC Zone, Mac Zone and The Learning Zone, has grown into a multi-channel retail operation that includes a new business-to-business division. The new Zones Business Solutions division is
Kid culture is becoming the new money maker for home decor catalogers. Following on the heels of fashion retailers such as The Gap, The Limited and Talbots, which in the mid-1990s began offering children’s clothing that mirrored adult fashions, kid-sized products are now filtering into the bedroom and playroom. In the past several years, Neiman Marcus, The Company Store and Pottery Barn have all created catalogs for kids. These new catalogs are chock full of endearing offerings for kids—furniture, bedding and housewares—at adult-sized prices. Home Furnishings: Catalog Magnet According to data released in 1999 by Banc of America Securities, consumers spend an average of
Be fast, consistent and discreet, and you'll have happy customers who will come back again By Chris Merritt Put yourself in this customer's shoes: In the spring, Susan telephone-ordered an A-line jumper in the popular, seasonal color "shrimp" and in her usual size. When the jumper arrived, it fit too snugly in the hips. So Susan sent it back with a request for the next-largest size. A month passed. She had no jumper, no acknowledgment from the company and, when her credit card bill arrived, no credit for returned or exchanged merchandise. She finally received
By Lisa Yorgey With their small populations, the countries of Scandinavia—Sweden, Norway, Finland and Iceland—have been largely overlooked by U.S. direct marketing companies. European companies that have been more active in this region have achieved excellent results. Former Yves Rocher CEO for Europe Dan Bryzokoupil says that "of the 88 countries Yves Rocher markets in, Sweden had the highest per capita sales figures." U.S. marketers are taking a second look at the area now that the Internet has become a key business channel. Scandinavia is the most wired region in the world, with higher levels of