February 23, 2017

Sales Down 7%

Some catalog advocates will look to Victoria's Secret ... see a 7% drop ... and then raise a champagne glass in celebration (click here).
  • "See, that proves the POWER of putting paper in the mailbox."
Think about it for a moment. You pull tens of millions of dollars of catalog marketing out of the ecosystem and sales only drop 7%.

Again ... SALES ONLY DROPPED 7% AFTER REMOVING A FULLY-BAKED CATALOG MARKETING PLAN.

If sales dropped by 7% and the ad-to-sales ratio dropped by 10% ... the business is WILDLY more profitable. Now, I have no idea how much paper was buried in the ad-to-sales ratio, but simple math suggests profit had to increase. A 7% sales drop and a 4% ad-to-sales ratio drop would yield an increase in profit.

Please - measure your organic percentage.

Please learn what your business could look like if you changed marketing strategies.

You run these scenarios, right?

MLV

Y'all have heard of Customer Lifetime Value (called CLV or LTV), right? Another 10% of you calculate the metric and know what the rig...