December 02, 2018

20/50 Rule

When you strip out all of online and retail demand not caused by a catalog mailing, you stumble across an interesting rule-of-thumb (yes, your mileage will vary).

Across my projects, it is common for the top 20% of catalog circulation to account for 50% of demand. In the table here, 18% of the circ yields 51% of the demand.

This ratio used to be closer to 25% yielding 50% ... it is changing over time ... the disparity is getting bigger and bigger.

It means that as catalog marketing shrinks as a discipline, the gains generated by catalog marketing are even more disproportionate ... skewed to an even smaller number of high-quality customers.

Which means that all of us are responsible for finding alternative marketing tactics for everybody else.

Make sense?

Email Marketing and Discounts

It comes up over and over again. The email marketing team wants to maximize open rates (not profit, mind you, open rates). How does one...