May 09, 2009

Co-Ops And Multichannel Merchant

This theme came up at the ACCM conference --- response rates are down on dramatic decreases in circulation.

The concept of a "death spiral" is well known --- cut out prospecting, the business gets smaller, so you cut more, causing the business to get smaller, and next thing you know, you're out of business. It is a concept that the retention experts conveniently leave out when talking about catering to loyal customers.

What is interesting is that it is the co-ops that are dealing with the death spiral. The co-ops destroyed the list industry, and that's fine, America is all about competition and capitalism. But if the data in the article is true (30% drop in co-op names), then you have a whole new set of challenges in the catalog industry --- is there enough business to support all of the co-ops that exist today?

Page Counts When Bifurcation Hurts All Other Customers

Yesterday we talked about the fact that best catalog customers (a minority of your file) deserve MANY catalogs that are merchandised with...