We looked at a Great Catalog buyer (Many More Contacts, Many More Pages).
We looked at a Good Catalog buyer (Tons of Options).
How about a Modern Online buyer?
What is the right strategy for this customer? There are choices, but there is a clear theme. Let's analyze all choices where annual profit > $1.35.
- 1 Contact at 136-200 Pages.
- 2 Contacts at 56-152 Pages.
- 3 Contacts at 32-96 Pages.
- 4 Contacts at 32-64 Pages.
- 5 Contacts at 32-48 Pages.
- 6 Contacts at 32-40 Pages.
- 7 Contacts at 32 Pages.
- 8 Contacts at 32 Pages.
If you want to employ a frequency-based strategy, you mail 7-8 contacts at 32 pages.
If you have an 80 page catalog (on average), profit is maximized/optimized at just 1 contact.
Do you understand the difference in strategy?
- 1 Contact at 80 Pages.
- 7-8 Contacts at 32 Pages.
I'll take the latter strategy every day of the week.
99 out of 100 catalogers do not employ the latter strategy. That's a problem.
What have we learned?
Best Catalog Customers:
- We typically send many mid-sized catalogs.
- We should send a TON of mid-sized to large catalogs.
Good Catalog Customers:
- There are dozens of optimal strategies, from some contacts with many pages to many contacts with few pages.
Typical Online Buyer:
- We should send some contacts with few pages.
All three strategies are different than what the typical catalog brand executes.
What the typical catalog brand executes sub-optimizes profit across all customer segments.
Are you ready to do something different?
Send me an email (kevinh@minethatdata.com) and tell me what you learned from this series, ok? Did you learn something that enables you to be ready to do something different?
Send me an email (kevinh@minethatdata.com) and tell me what you learned from this series, ok? Did you learn something that enables you to be ready to do something different?
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