The Catablog
Posts Tagged ‘catalog prospecting’
To iPad or Not to iPad – Part II
I’m sure that after my last blog about the iPad you are now the proud owner of one…
perhaps the iPad 2. Congratulations and welcome to the ever-growing and not-so-elite-anymore club.
Since my last posting we have had a great deal of interest and questions as to how we go about building our apps. Like gin, there are a lot of labels to choose from. You need to look at the ingredients to judge the product and taste as many as you can, or in this case download as many as you can. So today I want to cover a few points to keep in mind when doing your homework on bringing your iPad app to market.
Do not get caught up in any cooperative program where your app is together with many other apps (“to save you money”). Your brand should stand by itself and be available to your audience as part of your multi-channel marketing strategy, not anyone else’s. A PDF version of your catalog posted on iTunes will get you nowhere.
Our clients have found that an app being somewhat different than the actual catalog has a better appeal to the audience. As I mentioned previously, the app itself is not meant to replace the catalog but to provide the user with a more mobile option. So while many marketers create the app with the catalog “guts,” most have added unique products, features, services, etc. to attract a broad audience.
Your app should be interactive…not just in the obvious, ordering…but by incorporating videos, perhaps audio, how-to’s. The digital world makes this easy and affordable. One of my favorite apps (not catalog related) is The Daily. It is a news app that makes great use of every digital means available to engage the reader and differentiate itself from the other news apps. This formula is so successful that it is one the best-selling (yes you have to pay for it, after a free trial period) apps out there. Their competition gives theirs away for free and are still are having a hard time beating The Daily’s numbers.
Make sure you have a splash page, the first thing a user sees when searching iTunes; the page that’s visible when downloaded onto the iPad. That brand logo is critical and should be consistent with your other marketing promotions. It represents who you are and your subscribers identify with you through that consistency.
Promote your app in every way possible. Place it (splash page) in catalogs, direct mail pieces, website, emails…anything and everything that reaches your audience. Again, consistency is key.
Tell the audience why they should download it. Seems obvious but the “build it and they will come – and stay” mantra does not apply here. There are over 350,000 iPad apps as I write this and probably a few more added by the time I finish, so you need to sell your audience as to why they should get yours.
When it’s time for a new release of your app, let your customers know – in advance. Not through the usual updates through iTunes but alert them through the channels I mentioned above. Let them know when it will be out and maybe tease them as to why they should download the new version. Some marketers alert their customers of a new release when the old app is activated on the iPad.
Again, most iPad users like to use the technology they have at their fingertips. That’s why they purchased one to begin with. Make your app appealing to their desires.
Make sure you are measuring everything you can about the usage of the app, not just the number of downloads. Also keep in mind that for some ordering through an iPad may not (yet) be a comfortable experience. So look at all available metrics, not just sales through the iPad.
There are a few marketers who are charging for their apps. Unless you have a pure educational or “how to” theme that has perceived value, you will not get much attention, or downloads by adding a price tag to your app. The goal is to make it easier for your customers to communicate with you and free is still king. (Do you remember the days when catalogers put a “price” on their catalog to show perceived value?) How’s that working today?
You do not need to refresh your app each time you roll out a new catalog. Again, the intent for an app is to be something different than the printed piece. We are seeing a trend with our clients of refreshing an app based on seasonality, new product roll-outs, etc. Apps tend to have a longer shelf life than the printed catalog so make the most with each one you produce and give people a reason to keep them.
Many of our customers see their web traffic increase significantly when their app hits the market. Then after a couple of weeks it plateaus. They see a similar pattern with the apps. You have to keep them wanting more. One of our athletic apparel companies includes workout videos within the app, enough for 30 days of workouts that challenge the user to reach that next level. After 30 days, a new set of videos is available to download.
Make sure you test the app yourself before it gets released. Try every feature, every page, every link, etc. This app represents your brand and you want it to be perfect. BUT – we all are still in a learn-as-you-go stage. The technology is rapidly expanding and the available options will be expanding as you move forward. Some clients are exploring ways to use the cameras in the iPad 2, another option.
So, we will keep you updated on the evolution of the iPad as it relates to the catalog market and the success and tribulations marketers continue to experience. But let me give you a little “heads up.” If you want to have an iPad app presence for the all-important fall and holiday seasons, now is the time to act.
I end this blog the same as my last one on this subject – the future is now.
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Contact Us
Gary Sierzchulski
Vice President, Arandell Marketing Solutions
Phone: 866-834-5611
Email: GASierzchulski@arandell.com
The Catalog Lives!
A funny thing happened on the way to proclaiming the print catalog is dead……..IT’S STILL ALIVE!
If you have spent the early days of 2010 analyzing the results of your Fall and Holiday campaigns, you may have noticed something a little strange; emails, God love’em, were blasted out in record numbers in 2009. That was good news for me because I sold a lot of email appends. As a result of all that clutter in peoples’ inboxes, not to be confused with mailboxes, the results were not all that impressive. In my humble opinion, direct marketers looking to cut costs as much as possible, yet still justify their existence, took the route of emails over direct mail to get the message to their customers, or in some cases to prospects. In many peoples’ analyses they noticed that the average transactional value in most cases significantly decreased. Marketers took the approach that more is better. Now many are discovering that more is not always effective. That’s the bad news for me – now they want answers as to why this approach did not always work. While marketers are trying to get a handle on this, we have seen the number of emails significantly decrease over the first two months of 2010, almost by the same amount they increased last year. Oh yeah…I forgot to mention that many are turning back to the direct side in the meantime.
Do not be confused; email campaigns are still highly critical to one’s overall marketing and branding efforts. What seems to have been lost is the fact that many of these email campaigns fail to “show me the money.” Just because they are cheap, it does not mean they are the best way to engage your customers. In order for an email campaign to be successful, the same tried and true direct marketing rules need to be applied. In fact, because emails are inexpensive there is no reason for the campaign NOT to be relevant, personal and recognizing the customers’ recent history with you.
Here is a thought you may want to consider…if you have customers that have not purchased from you in the past six to nine months, conduct a test (isn’t that the beauty of direct marketing?). Take half of those customers and send them an email offer enticing them back to you. Then take the other half and send them a direct mail piece (catalog or similar) with the same message. I’ll bet you two things will happen: (1) your average transaction will be higher from the mailpiece as opposed to the email and (2) overall sales from the campaign will be higher. If you really want to get nuts, segment this group into thirds and the third group gets both the email and direct mail piece.
However you want to do this, the important factor here is that you talk to these people as individuals. I was just at the Black Eyed Peas concert the other night along with 14,000 others. We were all there to see the great performance so we had that in common (like the customers who buy from you), but as I looked around, I realized I had very little else in common with those around me. So to “target” a message to this general audience about an after-concert party at a night club offering three-for-one shots of some kind of vodka until 3:00 a.m. on a work night would not interest me (actually it does but for this article the official word is that it does not). But a message telling me of a valet service that would also allow me a quicker exit from the place after the concert would be of great interest. The point is that your customers are very different from one another. You have the data to prove that. You do, right? If not call me ASAP. Now use it like there’s no tomorrow (because one never knows).
Me? I want to be media agnostic – use the best channel or channels for the specific campaign. But all channels should work together so your company will not only survive but thrive.
Remember – your catalog is still the most important merchandising tool you have. Treat it as such.
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.
Because that’s the Way it has Always Been Done
Have you heard that line before? If so, I hope you don’t accept it as your “final answer.” Just because something has always been done a certain way, that’s no reason to keep doing it the same way, unless of course the method has no room for improvement. And, I certainly hope you have not been applying the “because it has always been done that way” mentality to your catalog design. You can still maintain brand image while also changing up variables such as layouts, messages, formats, sizes, page counts, in-home dates, etc. In fact, you should be changing things up to measure how response rates fluctuate from one catalog design to the next.
Maybe you’re a cataloger who has always mailed letter-size booklets or “Slim Jims.” How has your response rate changed since the USPS implemented its new tabbing regulations earlier this year? If it has gone down, maybe it’s time to try something new, like a traditional upright format. Have you typically produced a catalog with an oblong format? With the USPS bringing out new Droop Test regulations, now is the perfect time to implement a new format for your catalog because the oblong is not going to survive with the new droop/deflection standards. Could you transition to an upright or square format? Try it! Have you always treated all customers, regardless of purchase history, the same? If so, maybe it’s time to use a more dynamic approach to how you target customers. Do you use database marketing to help you with those efforts? If not, it’s time.
all about ROI recently released its “50 Best Tips of 2009“; I highly recommend reading it, as it gives some great ideas for changing up your current multichannel marketing plan (or offering you reassurance for the one you already have). Regardless of what strategies you decide to implement going forward, don’t apply the same ones as this year just because “that’s the way it has always been done.” That’s a sure fire way to bring your success to a standstill. Change is good. Embrace it!
No Postal Increase in 2010 – Really?
Since John Potter’s (USPS Postmaster General) recent announcement that there will be no postal increase for 2010, I have been receiving a large volume of calls and e-mails from clients and prospects expressing their extreme delight over the issue. Mr. Potter made the announcement in mid-October that there would be no increase in 2010 for Market-Dominant Products, including Standard Mail, First-Class Mail, periodicals and single-piece Parcel Post. I was somewhat surprised at this decision based on the difficult financial situation facing the USPS, but hopefully, this move will be an encouragement for marketers to get back in the mail or to increase their current circulation. I have seen signs this may be happening as catalogers plan for their 2010 mailings. No postal increase makes that task a lot easier and less stressful.
Throughout the past couple of weeks, there has been some speculation as to whether rates could rise outside of a CPI increase or exigent rate increase. Please rest assured that the USPS has confirmed that there will be absolutely NO rate increase for Market-Dominant Products (again, Standard Mail, First-Class Mail, periodicals and single-piece Parcel Post) in 2010. So, lock in those marketing budgets now…no need to wait for additional postal rate updates from the USPS. Keep your postal budget as is and take advantage of this opportunity to increase your mailings to reach more prospects or to re-activate prior customers.
Questions? Call or email me any time!
No Postal Increase for 2010
The following was released from the Postmaster General this afternoon. Some great news for your Thursday afternoon!
For questions regarding this release or other postal issues, please contact Don Landis , Arandell VP of Postal Affairs or Susan Pinter, Director of Postal Affairs at 800-558-8724.
To Postal Service Customers:
Many of you have expressed concerns regarding mailing costs for 2010. The tough economic climate has presented significant challenges to all of us and pessimistic speculation has suggested that postal prices could increase by as much as 10 percent.
As we begin a new fiscal year and as many of you, our business clients, are preparing your 2010 operating budgets, we want to end all speculation.
The Postal Service will not increase prices for market dominant products in calendar year 2010.
Simply stated, there will not be a price increase for market dominant products including First-Class Mail, Standard Mail, periodicals, and single-piece Parcel Post. There will be no exigent price increase for these products.
This is the right decision at the right time for the right reason. Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry.
While increasing prices might have generated revenue for the Postal Service in the short term, the long term effect could drive additional mail out of the system. We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace. Changes in pricing for our competitive products-Priority Mail, Express Mail, Parcel Select, and most international products-are under consideration. We expect to announce a decision in November.
We are committed to working with customers to find ways to grow the mail through innovative incentives like the Summer Sale and contract pricing. Mail is the most effective means of communication and advertising and we will continue to work together to increase the value of the mail. Mail is a smart investment for the future.
John E. Potter
Understand Your Customers by Increasing Address Quality
One of the most critical factors that is often overlooked in regards to Address Quality is the ability to better understand and view your customers. Here’s is what I mean.
Suppose you have customers John Smith at 125 Ferret Street and J Smith at 125 Ferret Avenue Apt 2.
The John Smith at Ferret Street has purchased 9 products from you over the years, but none in the past 12 months. However since he’s been a customer of yours, he has purchased $1400 worth of your products.
The J Smith at Ferret Avenue Apt 2 has purchased a $65 item from you 5 months ago but nothing before or since then.
Based on their past buying history, you would treat these two customers (or should) very differently. In fact, if you were doing a mailing to only customers who purchased over $100 from you within the past 6 months or who has spent over $1500 life to date neither one of them would receive your mailing and you and they would miss out on a great opportunity to connect.
However through the proper use of address integrity products and duplicate identification processes we have cleaned up their information and these two customers now become one.
Bad news is you just lost a customer.
Great news is that you identified one of your best customers. Now you can communicate with him in a whole different way and acknowledge the fact that he indeed is one of your best customers.
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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