So What Does It Mean?

This week we ran through a series of simulations that demonstrated something very interesting.

• If you are a struggling catalog brand and 75%ish of your sales are catalog driven, you've got problems. Cutting back on circulation hurts top-line volume and doesn't generate enough incremental profit to effectively boost the bottom line. Yes, you can save a lot of ad cost that can be invested elsewhere, but that doesn't solve your merchandising problems.

The story is different if you've done the hard work of attracting a "more modern" housefile.

• If you are a struggling catalog brand and 50%ish of your sales are catalog driven, you can cut back (dramatically) while significantly boosting profit. Your ad-cost savings (which will be significant) can be spent elsewhere, or pocketed, your choice.

In other words ... the cataloger who got away from the co-ops and rented lists is able to manage the future far more effectively than the cataloger who stayed "loyal" to the industry.

The fraction of audience that works in the catalog industry would probably want to know what a five year circulation simulation says about the future of their business, correct? Contact me (kevinh@minethatdata.com / 206-853-8278) and we'll talk about data requirements, ok??