Catalogues - What Should The Print Order Size Be?
A recent survey result from our sister counterpart – the DMA, positions print catalogues as the primary sales channel. In addition the data suggests a consensus among successful marketers that an integrated or multi-channel approach to supplement the sales from catalogue promotions. The survey commissioned by the DMA indicated 62% of the merchants polled consider catalogues their primary sales channel while only 20% cited the web and 6% indicated retail. The survey also highlights that print catalogue remains the largest revenue generator among all channels accounting for approximately 50% of all multichannel sales in 2007 & 2008 although the web will continue to grow. And the volume of print catalogue in circulation has increased since 2003 as companies are leveraging their books to drive customers to their websites. In the same study, 90% 0f the respondents now track response for online buyers separately from offline buyers compared to 60% in 2006 while 32% use search marketing in addition to email promotions and web offers to cross-sell offline buyers online. The same report also highlights that 50% of businesses have fully integrated their marketing functions and between 60% - 70% have also integrated their operation and consumer front-end functions.
Yet, marketers need to take into account the impact that is currently confronting the direct marketing industry. External factors such as rising direct costs in paper & postal, manufacturing, oil fuel surcharges, and the strength of the Canadian dollar are all factors that we as marketers need to take into account in running our businesses. Coupled with environmental and regulatory factors, marketers need to be more diligent, faster, and in touch not only with these issues but more so than ever with the wants & desires of their customers and consumers. Competition is fiercer than ever and in a multi-channel environment which includes not only the web, but mobile, satellite, and podcasting – we need to ensure that consumers’ specific interests are addressed in a much more targeted and marketed at a 1:1 level.
When Canadian Tire announced last May that it was no longer to publish a print version of its catalogue it marked that first time in over 80 years that it is ceasing the publication to households which was estimated to reach over 9 million households! The catalogue was launched in 1927 in response to the need to sell automotive supplies to distant customers. Canadian Tire decided to no longer distribute the catalogue due to rising costs and environmental issues.
In the U.S. an activist web site called Catalogue Choice is a do not send catalogue listing that was launched almost a year ago and this past June has attracted its 1,000,000 member opting out of over 11,500,000 catalogues! As you may be aware at the end of this month the Do Not Call National Registry will be in effect in Canada. In the US. – the counterpart DNC listing has reached over 120,000,000 registrants!
Last February another activist web site was launched: Red Dot Campaign
CPC launched its own program in May’08: Canada Post/Green to encourage more sustainable practices for business and consumers when it comes to direct-marketing packages. The Consumer Choice program managed by CPC enables consumers to opt-out of receiving Unaddressed Admail delivered by CPC. Unaddressed advertising mail is one of CPCs fastest growing revenue streams generating 339 million in 2006 up 14.4% from 2005.
Direct marketers and cataloguers will need to be fast and innovative in a green shifting/consumer advocating environment which will be an ever increasing factor in the future. Innovation techniques such as variable print and digital catalogues will become much more prevalent in the future. Cost barriers are becoming less of a factor as the technological advances and become more main stream. Targeted promotions through database modeling of behavioral, transactional, demographic and lifestyle data cross referenced with advertising communications is one of the fastest growing revenue streams in the advertising world. This principle also holds true in the catalogue market. In fact with the advent of digital/online catalogues, behavioral targeting may also be an area of business that will be impactful and engaging for consumers and advertisers alike. As electronic data evolves and social marketing continues to grow – we as marketers will need to be able to communicate to consumers and/or communities of interest – when they want and how they want they want to receive information.
We are also learning as we go. In a multi-channel environment, targeting individuals via an integrated marketing approach is paying dividends and is sustaining the DM business while other new channels (digital, mobile, satellite, etc.,) continue to grow. Also, we are now realizing the Customer Life-Time Value (CLTV) is greater from an integrated approach versus solo efforts. Customers who respond to DM and web or phone (mobile) generate a greater ROI than individual or single channel efforts. The ingredients to a winning recipe is providing consumers and customers what they want in a manner they want to receive it and when they want. It’s not an easy task but a challenge that marketers need to address for the sake of our businesses and industry.
