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Catalog Growth

Posted on November 17, 2011

Since the mid-1990s, many experts have predicted the extinction of the printed catalog. However, until the double-whammy of the huge postage increase of 2007 and the Great Recession of 2008-2009, catalogs in America continued to thrive, aided and enhanced by the maturation of Internet marketing. As both the general economy and postal rates settle down, it will be proven that “rumors of catalogs’ demise” continue to be over-stated. With catalogers’ continuously responsive use of recycled paper and tree replanting, as well as their close attention to self-regulation, this responsible industry is primed for greater growth going forward

The catalog will always drive decisions for a long time to come. Even after the migration of orders from call centers to the internet, the catalog is still showing consistent revenue. It is the catalog that is still driving the customer to the internet. Both channels provide a very symbiotic relationship. There would be a very real negative impact without any one channel. Take advantage of these changes and you can print a powerful catalog that brings in massive return on investment.

For more information on Arandell solutions visit: http://www.arandell.com/services/

To iPad or Not to iPad – Part II

Posted on July 19, 2011

I’m sure that after my last blog about the iPad you are now the proud owner of one…Gary Sierzchulski, VP, Arandell Marketing Solutions
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.

Our phone lines are open.

Contact Us

Gary Sierzchulski

Vice President, Arandell Marketing Solutions

Phone: 866-834-5611

Email: GASierzchulski@arandell.com

Don’t Look a QR Gift in the Mouth

Posted on June 15, 2011

For whatever reason, the USPS is offering you a 3% discount on your postage over the next two months for simply applying a QR code (mobile barcode) somewhere in your catalog. Huh? For all the reasons they should offer incentives, promotions, etc, I have to tell you, QR codes were not high on my list. But take it and run with it and don’t ask questions. You now have been given more than a postage discount. Now is the perfect opportunity for you to gauge the tech savvy of your customers and prospects, and also to understand how badly they want to be with you. All the technology in the world is meaningless unless your customers embrace it and tell you they want it.

First, let’s get the technical garb out of the way. QR codes have been around for sometime and I’m sure most of you have seen them in magazines, newspapers, billboards, POS, retail stores, etc., enticing you to scan the codes for something more – whatever they want more to be. The codes themselves are easy to build. There are 33 million do-it-yourself websites instructing you how to build them. You can get very creative in the design of them and have them embrace your brand. If that doesn’t do it for you, then let us help! You can contact us to either walk you through the steps or we may even be able to create them for you. However you choose, the technical barriers to creation are so low that my dog Alex produced one for his collar that directs the person who finds him to the nearest Starbucks.

The real issue here is what you want that simple QR code to do for you, and more importantly for your customer. DO NOT take the easy way out by creating this code to steer people to your website. This is a waste of time for them and produces nothing of value for either of you. Don’t you think they can or already have gone to your website if they wanted to? So this code is supposed to save them the time of typing it in…….? Come on – you’re better than that. Here is where direct marketing basics come back to life. The opportunity to engage with your customers is prime and you have an exceptional opportunity to truly add value to your relationship.

WHAT IF the QR code directed people to….?

  • Your loyalty program to learn all the benefits of joining your program?
  • A YouTube video describing the features and benefits of one of your best-selling products?
  • A video on how to apply that perfect anti-aging cream?
  • An offer too good to be passed up, like 40% off plus free shipping? (Think JoS. A. Bank)
  • A recipe that includes one of your best-selling spices?
  • The perfect gift sampler of meats to send to your Dad or better yet…me?
  • Your Facebook page and encouraged them to “Like” ( I still have a hard time with this one) you and by doing so, they would receive an instant discount?
  • A list of reasons as to what differentiates your products and services and why they should buy from you?
  • A survey and upon completion of it they are awarded a significant discount?
  • A listing of your retail stores in their area?
  • An instant coupon that they could take to their local retail store for a discount?

What if…….

My time is up here. But the message here is to use the code to engage your customers and measure the results. From this “gift” you may truly learn more about your customers, and make some money as well….and really isn’t that what direct marketing is all about?

Again use this gift for all it’s worth because you may not have a second chance……….

Call us we’re here to assist.

Gary Sierzchulski
VP, Arandell Marketing Solutions
866-834-5611

Click or scan the code below to send me a message.

To iPad or Not to iPad

Posted on April 12, 2011

Gary Sierzchulsk, VP, Arandell Marketing Solutions

Look at some of these facts:

  • Over 20 million sold so far (selling at a faster rate than the iPhone)
  • Second generation of the iPad sold out in less than two weeks; Third generation of the iPad already scheduled for release later this year
  • Publishers have embraced the device and virtually all have an iPad version of their publication or have completely converted to the electronic tablet
  • 50% of Fortune 100 companies are testing the iPad for business use
  • Here is one to remember: Conversion rates are five times higher with an iPad versus other mobile devices
  • Average age of user is 44; average income is $65k (both numbers are dropping)
  • iPads are now being sold at retailers like Walmart and Target, becoming more mainstream

So with all of these trends, why not test the water? Here are some of the reasons I have heard from our customers:

  • Not enough of them in the market…yet
  • My customers do not “fit” the user profile
  • It’s just an electronic catalog
  • How will my customers find my app?
  • We don’t have the internal resources to support it
  • The ROI is not there
  • It’s a fad that will soon fade away when something else comes along.

All of these are valid concerns. But if you’re looking to meet the needs and wants of your customers TODAY, provide them with another channel to match their lifestyle; you owe it to them and your company to investigate this channel. As you know, the easier you make it for your customers to connect with you the better for your brand (and your bottom line). Even if you generate no sales from the device, the increased exposure of your brand may more than justify the cost.

The iPad is an extension of your catalog, not necessarily the exact same version of your printed catalog…but could be. Like all other marketing channels, its performance can be measured. And here is another cool opportunity…we now have the technology to drive personalized content to the iPad.

Granted, it is a new channel and many questions remain but at the current growth rate for this product and the evolution of your customer’s demands, you need to have a presence in this channel now as opposed to later.

Remember just two years ago the discussions you had internally about social media? Look at how that channel has impacted your business. As someone once said – the future is now.

Let’s talk. Contact me, Gary Sierzchulski, at 800-558-8724.

USPS Droop Regulations Now Being Enforced

Posted on October 05, 2010

It’s Here!

The Deflection/Droop Requirement went into effect October 3, 2010 for all FLATS! Failing to comply with the Deflection specifications can potentially double or triple  your postage costs. 

If you have questions about how to reduce your catalog’s droop, please contact us today at 800-558-8724.

Baby it’s HOT outside or What is the Shelf Life of an email?

Posted on September 03, 2010

Gary Sierzchulsk, VP, Arandell Marketing Solutions

Think about that statement and question…

First off this is the hottest summer in quite some time and I don’t have a pool. I have friends who do but they suddenly are not answering their phone. Anyway, back to the point….

How long do you look at an email headline in your mailbox (those that don’t get caught in spam filters)?

Of those, how many do you open?

Of those, how many do you take a closer look at?

We’re talking literally seconds for your message to be “blinked” at. Notice the word read was not in that sentence. Is that the way you want to do business? Add to that the hundreds of messages you receive each day – that’s tough competition. So surfing through your emails becomes routine and numbing. Emails are impulsive.

Now the catalog….

Do you recall how many catalogs you received yesterday?

Of those, how many did you look at?

Of those, how many did you open?

Of those, how many did you read?

With less clutter in the mailbox you have a very good chance that your message will get read. The competition for the eyes is a little easier.

We recently did a survey with our catalogers and asked them what the oldest catalog was that a current customer used to place an order. The winner went to an outdoor furniture company who said a customer called in an order with a catalog that was a little over two years old. The customer saved the catalog because they were planning to do some landscaping, liked the design and products displayed in the catalog and used it as a template for their yard, but didn’t get around to doing the landscaping for a while. Can an email have that kind of shelf life? Think about that the next time you’re doing your daily mass delete of emails.

I, for one, keep my catalogs and really do spend time paging through them, especially on hot evenings with a nice cold cocktail at my side. Obviously I have a vested interest (or interests) in them but with today’s technology the quality, design, content and message they convey are stronger than ever. Catalogs embrace.

Catalogs, emails, texts, mobile and retail and who knows what’s next can all get along with each other, and need to get along. None of them, however, can be ignored. They need to be coordinated to reach the right audience at the proper time with the proper message.

Remember people surf the Internet. But catalogs offer a unique experience, tell a story and can immerse you, kind of like going for a swim. So people will not give up surfing, nor will they not giving up swimming. Now to find a pool……..

It’s all about options.

ARE YOU AFRAID TO TALK TO YOUR CUSTOMERS?

Posted on July 14, 2010

Gary Sierzchulsk, VP, Arandell Marketing SolutionsIn the past much “talk” was given to a direct marketing principle called contact strategy analysis.  What that means in layman’s terms is determining how often and when to reach your customers based on previous sales information.  In other words, using this approach you only contact your customers based upon their past purchase history, so a customer who only purchases during holidays would only be contacted during that season and so on.  The theory here was to maximize marketing dollars and tight budgets.

 Times Have Changed. 

 In the past two years many of you have reduced the frequency of your campaigns for all the reasons which we will not get into detail here.  If you go to your mailbox you will see this first-hand.  But funny things are happening, the consumer is coming back, albeit slowly, and buying!  Buying because they haven’t been for a while and it is our nature to do so.  With or without you they will be back.  So what are you doing about it?

 #1 – Reach out to your customers.  If you aren’t, your competitors are or will be shortly.  Consumers are hungry for deals to satisfy their buying urges, and again have saved up some money to meet those needs.  It’s funny, instead of you creating a sense of urgency with them; they are the ones who are creating it.  So meet their needs.  Even those who you consider your best customers (highest RFM) need to hear from you now.  In the past this segment would buy from you regardless.  Now they want to know that you’re still in business to start with and that you value them and can meet their needs, both emotionally and tangibly. 

Your older buyers were once buyers from you.  So you need to find out if they are still buying products like yours but just not from you.  There are several ways to do this and if you contact me we can discuss the methods to identify them. 

 #2 – Service is a lost practice.  You need to make it easy for them to return to you and more importantly buy from you.  Shipping incentives, in store pick-up, loyalty rewards, anything and everything should be considered to make your customers feel special again.  You have four marketing channels to interact with your customers.  Use them all but pay attention to which channels they choose to interact with you.

 #3 – Build up your brand.  Many of you “went away” for a while.  Your customers need reassurance that you’re still there for them.  More frequent contact now as opposed to selective contact will get you there.  Most of you have noticed that your house file is stagnant at best or probably has decreased over the past two years.  For your survival, that trend needs to stop but will only do so through increased contact with your customers and reaching out to potential customers, something of a lost art called prospecting. 

 #4 – Thank them for their business.  How? – By telling them.  As I said many times before, the more quickly you reach your buyers after a purchase, the higher the future response rate is.  And if you personalize the piece in some fashion the responses are even higher.  Why wouldn’t you make this a standard part of your business practice?

 Again, the time is now.  Create the sense of urgency with your customers and they will respond.

Things are getting tight!

Posted on May 27, 2010

Blake Hutchison, Vice President, ProcurementWow, what a difference a few price increase announcements make on demand!  I think the mills got the desired effect they were looking for.

Lead times are increasing and increasing rapidly.  Coated groundwood grades seem to be accelerating the quickest, with lead times already out 5 – 7 weeks.  Coated freesheet, while not as bad, is still out 3 – 5 weeks.

The greatest factor in how quickly you can get paper is the basis weight.  If you print on a heavier weight (70#, 80#, 100#) your lead times won’t be as long.  38# through 60# basis weights, both coated groundwood and coated freesheet, are in high demand and their lead times are accelerating faster than the heavier weights.  32# – 38# is a little better, but not by much.

My advice would be to get your paper situation figured out quickly and at least get an LDC date to work off of so that you can properly estimate how much time you are going to need. 

If you have any questions, please don’t hesitate to email me  or call me at 800-558-8724

Thank you.

Industry Call to Action – Challenge Tax Encroachment – Your Assistance is Vital

Posted on April 28, 2010

Don Landis, VP, Postal and Government AffairsSince its inception three years ago, the ACMA (American Catalog Mailers Association) has focused primarily on the very issue for which it was founded: being catalog mailers’ watchdog group for keeping postal rates in check. To date, no organization had gone to bat solely for catalogers when it came to postal matters. ACMA’s mission is to advocate for catalogers where others cannot. They also partner with other organizations where catalog interests are squarely aligned.

ACMA’s such collaboration revolves around the new Colorado sales and use tax reporting requirements for out-of-state sellers who do not collect sales taxes from Colorado residents for their purchases. This law became effective on March 1, 2010.

And with that, the ACMA poses the following: What’s worse than having to pay sales taxes in every state? Having to report to every state every purchase your customers have made so the taxing authorities can start chasing your customers down and ordering them to pay back taxes.

Your Colorado customers now must get a statement recapping their purchases that you will also have to send to the Colorado tax collectors so they can hunt your customers down for the sales tax — and probably with a penalty on top of this. This experience is sure to make Colorado customers think twice about ordering from you, plus you now have an added cost of compliance without any offsetting revenue. It’s a triple whammy.

But wait, there’s more. Tennessee, California and other states are considering this same law or watching Colorado’s closely. Fact is, every state needs more revenue today. Out of state companies, who do not use any state services and who do not elect state politicians, are easy targets.

The Direct Marketing Association is coordinating a multi-industry legal challenge to the new Colorado tax law and will be using acknowledged state tax expert attorney George S. Isaacson to stop this from doing real damage to direct sellers of every type. We fully support DMA efforts.

Per a memo from DMA senior vice president, government affairs Jerry Cerasale, the new reporting law was passed by the legislature and signed by Colorado Governor Bill Ritter Jr., as part of a budget balancing package. DMA and others urged the Governor to veto the bill, but to no avail. It now must be challenged in the courts.

The reporting law requires non-sales-tax-collecting out-of-state marketers to notify Colorado purchasers with every purchase and includes the following stipulations:

  • They are not required to collect sales tax;
  • Sales or use taxes are owed by the purchaser unless the sale is exempt from sales tax even though purchased remotely, including over the Internet, telephone or catalog;
  • The purchaser is required to annually file a sales/use tax return with the Colorado Department of Revenue and pay tax on those purchases on which the resident has not paid sales tax;
  • The marketer is required to provide the purchaser with a year-end summary of the purchases the consumer made on which sales taxes were not collected; and,
  • The marketer is required to provide the Colorado Department of Revenue an annual report on the total amount of all the purchaser’s purchases on which sales tax was not collected.

More information can be found at www.taxcolorado.com.

Taxing indeed!

The proposed year-end notice to the Colorado purchaser regulations require the following:

  • Notice sent by Jan. 31 only via First-Class Mail with “Important tax document enclosed” appearing prominently on the envelope;
  • A summary of dates of purchase, description of product purchased and dollar sale amount for each purchase;
  • A statement that Colorado requires that the purchaser file a sales/use tax return at the end of the year and pay tax on all Colorado purchases on which no sales tax had been collected;
  • Inform for the purchaser that the form and further information is available at www.taxcolorado.com;
  • Notification that the marketer is required by Colorado law to provide the Colorado Department of Revenue with the total dollar amount of purchases the purchaser made; and,
  • Though not required, it may inform the purchaser whether an item purchased is exempt from Colorado sales tax.

The notice to the Colorado Department of Revenue must include this information:

  1. Name of the Colorado purchaser;
  2. Billing address of the purchaser if provided to the marketer;
  3. Shipping address of each purchaser if provided to the marketer;
  4. If the marketer has multiple billing and/or shipping addresses of the Colorado purchaser (Colorado purchaser is a consumer who has product shipped to him/herself in Colorado), provide all such addresses; and,
  5. Total amount of Colorado purchases made by the purchaser from the marketer.

For more information, please feel free to contact Don Landis, Arandell’s VP of Postal Affairs, HDLandis@arandell.com.  He can also be reached at 800.558.8724.

 

ARE YOU MOBILE?

Posted on April 26, 2010

Gary Sierzchulsk, VP, Arandell Marketing SolutionsThis past week I was in New York.  It was a beautiful, sunny afternoon and I was sitting on a bench at Noon eating a hotdog and watching everyone rush by on 6th Avenue.  What I noticed more than ever is that most people were not enjoying the great weather or for that matter, the people walking around them; they were too busy with their heads down looking at their phones.  I did a quick test.  For one minute I counted the number of individuals who were not using their phone either to (believe it or not) talk or to look at their emails, websites and yes, mobile apps.  There were only 33 people who fell into that category…33 people out of hundreds that rushed by!  That is incredible but not unusual.  We have become obsessed with our phones and their ability to do just about everything for us.  Here is an interesting fact; people sleep more nights with their phones than with a human person.  These phones must be something special.

Today there are over 285 million mobile phones in use in the U.S. and of those, 160 million have the ability to text.  Get this, even though there are “only” less than 50 million iPhones and Blackberrys in use, the Apple store has downloaded over 2 billion apps so far. You do the math.

So you have two choices; embrace this new technology or think it’s a passing fad that will be gone as soon as the next major communications invention arrives.  Let’s take the side of embracing it.

When we look at the different marketing channels we think of the basics; brick and mortar, direct mail and the youngest member, the Internet.  Now there’s a new kid in town – mobile, and he’s growing bigger each month, more than the other three combined.

So how do you get on the mobile wagon?  There are a few steps to take to see if it’s right for you now.  Keep in mind it’s not a question of IF its right, but rather a question of WHEN it’s right for you.  Sooner or later you will be riding the Mobile Wagon.

  1. Look at your customer base.  How much of your sales are generated through the Internet? (Don’t be confused with “through the Internet” as opposed to by the Internet.)  Most likely you see that number growing, meaning your customers are savvy, technological capable, and want to control the buying decision when they want to.  If you answer, “yes” to this – you are ready for mobile.
  2. In analyzing your web results, what percentage of hits is from mobile phones?  If you see any at all – you are ready for mobile.
  3. Do you want the ability to “talk” to your customers at any time or any place they are, maybe even as they just walk into your store?  If yes – you are ready for mobile.
  4. Do you want to give your customers the option to experience a rich, visual, and inviting view of your store that is always open for business?  If you say yes to this – say mobile.
  5. Can your customers walk and talk at the same time?  Are they over the age of six?  If yes – you are ready for mobile.

Keep in mind, mobile will not, repeat, NOT replace any of your existing marketing channels.  What it will do is give your customers another alternative to see your products, understand your company and most importantly buy from you in a very different environment.  Used strategically with your other channels, mobile is a great new addition to your weaponry. 

There are several ways to break into the mobile market.  The beauty of this technology is that you can take it very slowly and build over time or go hog wild from the get go.  Either way, you will be adding a whole new dimension for your customers and prospects to interact with you.  And since this technology is relatively new, most marketers have only begun to unleash the ability of this channel so you can get very creative and give your customers a highly unique experience before others copy your great idea.

So do not fear, mobile is here and is not going away.  But it is a great marketing partner for you and its possibilities are only limited by your creative abilities.  Give me a call to learn how Arandell is embracing this technology and how we’re working with our customers to incorporate mobile with the Mother of all marketing channels – The Catalog.

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