January 29, 2012

Dear Catalog CEOs: Integrating Judy, Jennifer, and Jasmine

Dear Catalog CEOs:

In the few weeks, we'll talk some about how we integrate Judy, Jennifer, and Jasmine into your database.  This is important, because Judy can actually support receiving MORE catalogs ... yes ... MORE catalogs!

Jennifer is a different story.  Your matchback analytics show that she buys three weeks after receiving a catalog.  That analysis, of course, is wrong, because you're always mailing Jennifer every three weeks, there isn't an open window in the calendar when you aren't mailing Jennifer.  Her behavior is mistakenly attributed to catalogs ... or search ... or affiliates ... or email marketing ... often, her purchase should be attributed to a discount/promotion you offered her!  In Jennifer's case, think Zappos ... almost no outbound marketing, and yet, Jennifer is buying twice a year from Zappos, because of free shipping both ways.  If you're sending Jennifer 17 catalogs a year, strongly consider sending her 6 catalogs a year, you'll be a lot more profitable, and you can reinvest your dollars in customer acquisition so that you can have two customers like Jennifer instead of just one.

Jasmine is orbiting a whole different planet ... she's a "recessionista".  Your merchandise, at 20% off plus free shipping fails to resonate with her.  Let's say she looks through your catalog ... that activity inspires her and her network of friends to find comparable product in a price range that is manageable for her.  You probably don't want to send her many catalogs.

In 2012, I am integrating Judy, Jennifer, and Jasmine with my Catalog PhD projects.  Judy, Jennifer and Jasmine form the "organic percentage" that many of you are familiar with ... the remainder of the Catalog PhD work tells you how often you should mail catalogs to a customer.  Remember, Catalog PhD project have identified $24,300,000 in profit opportunity in the past two years.  The methodology flat-out works.

If you're an email marketer, you will want to focus on Jennifer, as she's your bread-and-butter.  Jasmine will require some creativity, offering considerable opportunity.


Resources:


Hillstrom's Catalog Marketing PhD:











Hillstrom's 2012 Preview (still a lot of 2012 left, folks!)

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