tag:blogger.com,1999:blog-32202893.post5930549387737113054..comments2023-10-18T08:32:17.510-07:00Comments on Kevin Hillstrom: MineThatData: Extreme Makeover: Catalog EditionUnknownnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-32202893.post-71378016375077312392008-01-07T17:26:00.000-08:002008-01-07T17:26:00.000-08:00One more thing ... most catalogers have the abilit...One more thing ... most catalogers have the ability to send just one catalog into a household with two people that have different last names.<BR/><BR/>I've tested this strategy (one catalog vs. two catalogs into a household). Half the time I tested this strategy, more sales and profit happened by mailing two catalogs.<BR/><BR/>I guess it depends upon the conditions of the couple in the household --- if the couple share a catalog, then just one is needed.MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-31067716249343760032008-01-07T17:24:00.000-08:002008-01-07T17:24:00.000-08:00Hi Jill, thanks for offering your suggestion.One o...Hi Jill, thanks for offering your suggestion.<BR/><BR/>One of the hardest things for a cataloger to do is to determine the right number of catalogs to mail to an individual.<BR/><BR/>The big catalogers do a lot of testing, testing that customers aren't aware of. They test sending 4 catalogs a year vs. 8 catalogs a year vs. 12 vs. 16 vs. 24 vs. 32 vs. 48 catalogs a year.<BR/><BR/>Consumers would be frustrated to learn that, on average, the cataloger makes the most money by mailing a ton of catalogs --- in other words, on average, the brand could send you just five catalogs, but overall, the brand generates more sales and more profit by mailing you 24 catalogs a year.<BR/><BR/>For you, as an individual, 24 is too many.<BR/><BR/>But the cataloger lumps you in with 10,000 or 100,000 "similar" customers. As a segment of 10,000 or 100,000 customers, it is most profitable to mail 24 catalogs a year.<BR/><BR/>And that is why you get so many catalogs. I'm not saying the strategy is right for the individual customer, I'm just explaining the economics of cataloging at a high level.MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-67271022642466152042008-01-07T13:55:00.000-08:002008-01-07T13:55:00.000-08:00Kevin,Great post! I AM a lifelong L.L. Bean custo...Kevin,<BR/><BR/>Great post! I AM a lifelong L.L. Bean customer (and many other catalogs), but I HATE the fact that they send so many catalogs. In most cases, I want ONE catalog per quarter, plus a holiday catalog, from my favorite retailers: five catalogs per year. More than that just makes me mad and fills up my recycling bin.<BR/><BR/>One more suggestion for your list: allow consumers to specify "only one catalog per address." I live in a household that includes two different last names -- not an unusual situation in this day. But, we only need ONE of any given catalog.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32202893.post-79801139878132033222007-12-27T14:26:00.000-08:002007-12-27T14:26:00.000-08:00Kevin:Great post. I think I will point to it from...Kevin:<BR/><BR/>Great post. I think I will point to it from my blog over at Catalog Choice. One item I would like you and your readers to consider is how you can work with Catalog Choice to drive more sales and communicate with your customers that are using our service. We have some programs that we are developing for merchants. Sign up for your free Merchant Account at http://catalogchoice.org/merchants to start your Extreme Makeover.<BR/>ChuckAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-32202893.post-11694017651960710302007-12-27T06:52:00.000-08:002007-12-27T06:52:00.000-08:00You're talking about what is called the "two-step"...You're talking about what is called the "two-step" process.<BR/><BR/>It's challenging to make the economics of this process work in 2007-2008. "Back in the day", it worked really well. The brand would work with a co-op, paying maybe $70 for 1,000 names, paying another $290 to send the postcard.<BR/><BR/>For $360, about 100 folks would request a catalog. The brand essentially paid $3.60 per lead.<BR/><BR/>The benefit is that the brand gets to keep the name and address, whereas in classic list rental or list exchange, you essentially get one-time use of the name.<BR/><BR/>In the 1980s or early 1990s, pre-internet, response rates were maybe 2% to 4% on catalog requesters, and this made the economics of the marketing strategy work.<BR/><BR/>Today, future response rates are maybe 1%, so that is why you don't see folks using this strategy ... it is very hard to recoup the initial investment.<BR/><BR/>Of course, marketers could use the strategy to market catalogs, e-mail and rss ... but again, the economics make the strategy tough to execute. It's probably worth testing.MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-81348427247803140972007-12-27T05:16:00.000-08:002007-12-27T05:16:00.000-08:00Kevin,Great post as always. Definitely appreciate ...Kevin,<BR/>Great post as always. Definitely appreciate the ideas to take the offensive rather than passively watch catalog choice become the next "do not call" legislation(not that telemarketers should ever be equated with cataloguers!). <BR/>And you are so right---many of the concerns of those receiving catalogs deal with excessive, unwanted and when green is vogue, very wasteful.<BR/>Neat tie-in with the environmental needs. Loved the PR angle. Don't forget using recycled paper for postcards that allow the customers to OPT-IN as opposed to opting out of catalogs. <BR/>KAnonymousnoreply@blogger.com