The Catablog
Archive for the ‘Tips on how to utilize your direct mail in a recession.’ Category
Catalogs are Good for the Economy
The catalog industry has a wide-sweeping impact on American culture, well beyond the economic benefits of employing millions of people, paying millions in federal, state and local taxes, and conserving energy and natural resources. The American catalog experience has significant and important social benefits to American culture and consumers and the economy.
Catalogs are Good for the Environment
9 Reasons to Mail More in 2010
“The economy is weak.”
“My budgets are frozen.”
“We are barely surviving as is.”
“I don’t have enough staff or time to even think about prospecting.”
“I have plenty of non-active buyers on my file who I can turn to.”
And the best one…..”business is not good right now.”
If you answered, “yes” to any of these, you are a great candidate to ramp up your prospecting in 2010, or for most of you, to actually begin prospecting again after a year or two of not doing it. Why? Because the cost and timing to acquire a new customer could not be better.
First let’s look at the cost side of the equation.�
1. The USPS has frozen rates for 2010 and is considering offering incentives to mail more. Even without the incentives, rates are locked for 2010 and for budgeting purposes you have a stable fixed cost.
2. List brokers are willing to deal like never before. Co-ops are also loosening their rules and barriers to entry. Discounts and incentives that were once for only the large mailers (are there any of those left?) are now being offered to virtually all mailers.
3. Arandell Corporation is also in a great position to provide you with the most innovative solutions to reduce your costs and deliver your message as efficiently as possible. Technology in the industry has never been better.
4. Your other suppliers have also been driven to invest in the tools, technologies and personnel to keep you going (as well as themselves) and will do whatever they can to earn your business (and to stay alive themselves).
The other side of the equation is timing and as they say…”timing is everything.”
1. Despite the fact that the economy is shaky, there are people out there still wanting and needing goods and services. If you have been to a mall lately, they are still very crowded. Yes, some stores are doing better than others, but isn’t that always the case and isn’t that what marketing is all about?….finding and talking to people who fit your target? There will always be winners and losers.
2. Because there are fewer competitors of all kinds out there, there are fewer catalogs and direct mail pieces being delivered. If you have a good product, demonstrate value, provide a great experience and deliver memorable customer service, you will be noticed and successful. Again, as bad as it may be out there, people are buying, people are going to stores and people are looking to feel good. What an opportunity.
3. You also have the opportunity to capture customers, maybe for a long time. Keep the messages and your brand going. Once you stop, your “loyal” customers will likely forget about you and stop as well. The people that never heard from you have fewer messages to decipher and that is a good thing for you, so again, now is the time.
4. The amount of available data used to find the “best” prospects is also at an all-time high. Today, you can slice and dice using an infinite amount of data if you feel so inclined.
5. The methods to reach new customers are greater than ever. Every channel has potential for you in today’s environment. Do not assume that your potential customer is not using all of them in their daily lives today.
So, while it won’t be easy, the path to growing your business is a little smoother than it once was and may ever be. You don’t have to jump in with both feet but now is the time to test the water….. at least with your toes.
USPS First-Class Mail Sale Coming Soon
This week will be an exciting one for some first-class mailers. On August 21, letters were mailed to all First-Class mailers who qualify for the upcoming First-Class Mail (FCM) Incentive Program. (Think you qualify, but didn’t receive a letter? Click here to contact the USPS.) The sale on First-Class mail is going to be structured similarly the USPS Summer Sale (which will last through September 30) that was rolled out for standard mailers earlier this year.
And, so you ask:
What qualifications do I need to meet in order to participate in the First-Class Mail Sale?
- Minimum of 500,000 non-parcel First-Class pieces mailed through your Permit account between October 1 and December 31 of both 2007 and 2008.
- Undergo a 45-day approval period by the Postal Regulatory Commission (PRC).
What Incentive is being offered for participants in the First-Class Mail Sale?
- 20% postage rebate (credited to your postal Permit account) for qualifying presort letters, flats and cards mailed between October 1 and December 31, 2009.
- After the rebates are applied, the discounted price, on average, will land somewhere between the First-Class Mail and Standard Mail rates.
Act now!
If you received your participation letter, be sure to visit the program registration Web site. You’ll also need to work with your mail service providers to obtain accurate 2007 and 2008 counts to provide documentation to the USPS Participants. The difference between those two years’ mailing quantities will determine your incentive threshold.
If you have NOT received a participation letter but you think you qualify, click here to contact the USPS directly. Remember…this particular program is for First-Class mail ONLY.
Standard mailers, stay tuned!
These incentive programs may be here to stay. A potential winter sale is being considered, with even more features than the Standard Mail summer sale. My personal perspective is that until the USPS turns itself around, the organization will continue to find new ways to incentivize mailing quantity increases. And, even when the postal service does end up back in “the black,” I can fully see them continuing to offer these incentives during non-peak mailing seasons as long as they continue to see results. So mailers, keep on mailing!
For additional information, please contact Don Landis or Susan Pinter; they can both be reached at 800-558-8724. You can also contact the USPS directly regarding the First Class Mail Incentive Program at firstclassmailincentive@usps.gov.
How Database Marketing is your Catalog Program Solution
In 2009 there is an unbelievably large amount of ways a CMO can spend his/her budget. Aside from the traditional direct mail pieces, tradeshows, T.V. and radio ads… we now have e-commerce websites, blogs, forums, Facebook, Twitter, etc. At the end of the day, just like we had to do when I started in this business, CMOs are required to investigate their ROI in each effort. Listen to the podcast below or continue reading to learn the latest trends in database marketing and how you can apply new techniques to your marketing program.
Click on the link below to listen to the podcast.
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Q: In the past, we have always stressed to our customers that the database is the most critical marketing component for direct mailers. Is this still the case?
A: Absolutely. In the last six to 12 months, our customers have been looking to their database for solutions about how to reach their customers more effectively. What we are seeing is that the current make-up of their databases is not working for them as they try to move forward. Our role is to work with the customers to try to develop their database to a point that makes it more relevant and more efficient to perform cross-channel marketing.
9 Things You Need to Know about the USPS Summer Sale
Since the recent announcement of the approval of the USPS Summer Sale, Arandell’s postal department has been a flurry with questions from customers, prospects and even people with whom we do not do business. This is the first time in history that the USPS is offering mailers an incentive and mailers are very excited about a potential reduction in their postage. In order to proactively address some of the questions that are coming in, Don Landis, VP of Postal Affairs and Susan Pinter, Director of Postal Affairs recorded a podcast of Frequently Asked Questions, which are listed below.
Click below to hear the podcast.
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Q: Can you provide a brief explanation of the Summer Sale?
The industry has been asking the postal service for an incentive program for several years now, whether it be a seasonal incentive, a prospecting incentive, etc. The postal service, in return, has been asking mailers how such a system would even work.
With mail volume being down as it is and postal revenue at an all-time low, the post office has come up with a program to gain more volume during periods of time when volume is traditionally low. The hope is that mail that was not originally planned for the fall months will be added. Everyone is happy that the post office is offering the program and is looking forward to similar programs in the future.
Q: Who is eligible? What qualifications need to be met?
Out of 100,000 standard mailers, we anticipate that about 3,000 mailers will be eligible for the summer sale rebate. To be eligible, mailers need to have mailed 1,000,000 pieces through a permit during the period of October 1, 2007 through March 31, 2008. It is important to note that the mail does not have to be from one location…it can be from multiple.
Prospecting with the USPS Summer Sale
Well, as you all know, the USPS is strongly considering offering a discount this summer if you increase your circulation over the same period of time last year. While this is a great step for the Postal Service in starting to finally recognize the needs and issues of catalogers, it should by no means be the key factor in deciding whether or not to increase prospecting. Right now, regardless of an incentive, this is the best time to build your brand. Consider the following reasons:
•There are fewer catalogs in the mail right now so yours will likely get more attention and have less competition than at any time since after September 11, 2001. Making it smaller and cheaper does not necessarily mean it is better. Will making your retail store smaller and “cheaper” bring in more customers?
•If you believe many of the economists, there are signs and reports beginning to show that consumer confidence is coming back. Again, this is a great time to position your brand, show the consumer that you are still out there and demonstrate that you are in a position to offer value. You need to be ready when the consumer is ready!
•We all heard about the consumer’s lack of loyalty. Many of our analyses, however, show that if you communicate with your customers by telling your story and creating value and positive feelings on a regular basis using all channels, they will be there for you and will be less sensitive to discounts.
•Your house files are shrinking, or at best, remaining stagnant. As we all know, this cannot be the case for much longer. You have two choices; increase prospecting effectively or lose market share and see your business decline. We have seen many catalogers go out of business in part to this short-sighted approach. Don’t forget; prospecting also means contacting inactive customers in your file who have done business with you in the past. Consumer tastes, interests, lifestyles, etc. constantly change, and in the past year, many have changed multiple times.
•The tools and approaches that are available to help you accomplish this are more effective than ever. They are also more complex, mainly due to the fact that we now have to consider multiple channels, contact frequency, lifestyle changes, etc. These are all part of a complex equation that can be solved with assistance from your direct marketing partners.
•Use all channels to communicate with customers. The king is not dead. Catalogs still continue to be THE driver for sales in almost all analysis we do. More than ever, however, customers are receiving, expecting and wanting to be contacted from various channels, so you need to make sure you’re hearing what they are saying and responding accordingly.
Now is the time to get back into the game regardless of a postal incentive. We can help you to do it right by taking a systematic approach; analyzing what has worked or hasn’t worked in the past and developing a strategy to gain market share. It is not a race, but if you don’t get to the starting line soon, you will be left behind. And by the way, if any of you have tickets for the August 29 Buffett concert I’m interested.
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