Some of you are already using a prospect catalog to improve overall performance.
Here's how the concept works. Let's assume you currently have a 128 page catalog. When you mail the 128 page catalog to your prospect audience, you observe the following metrics:
Ok, those aren't bad metrics.
Now, what might happen if we used a 48 page prospect catalog? Let's assume that the old standby rule of "pages are added at half-productivity" holds here. In that case, we can use the "square root rule" to estimate demand for a 48 page catalog:
- Demand For A 48 Page Catalog = (48 / 124) ^ 0.50 = 0.612.
Next, a prospect catalog is merchandised with only the best products. When merchandised in this manner, productivity usually increases by 20%, plus/minus. Let's assume a 15% increase in productivity.
- Demand For A 48 Page Catalog = 0.612 * 1.15 = 0.704.
With these assumptions, what might a profit and loss statement look like for a 48 page catalog, vs. a 128 page catalog?
|128 Pages||48 Pages|
There are a lot of positives here:
- You expose your brand to 1,340,000 households, not a measly 500,000 households. Your co-op will love you for this!
- Demand increases by more than ten percent. Your CFO will love you for this!
- Profit increases in this scenario. Your CFO will love you for this!
- Responses increase by more than 20%. Your Circulation Director will love you for this!
See, I'm not all about cutting catalog marketing, am I?