Catalog List Management and Acquisition Strategies (597 words)
by Alicia Orr
Where is the list business heading for catalogers as they look into the future? Increased list rental revenues and more efficient marketing will result from the knowledge and use of technology and advanced database marketing applications, says Peter Candito, president of Database Marketing Concepts, a list brokerage and management house in Bohemia, NY.
Here is Candito's take on what catalogers should look for in 2000 and beyond—particularly in the areas of the Internet and enhanced data/cooperative databases.
The Growing Availability of Data
Enhanced data is the name of the game today in catalog list rentals, says Candito. The first thing that catalogers should do is look into working with cooperative databases like Abacus and Z-24. He explains, "These have a positive effect on list acquisition because, theoretically, they can pull more responsive names by being able to identify known product category information, for instance."
Regarding any type of data enhancements, Candito suggests that better, more complete data about prospective customers allows a catalog to target its audience more effectively—plus it also makes the list more attractive to the rental market. "You can't talk about one without the other," Candito says, speaking of the crossover between the worlds of list acquisition and management for catalogers.
While some companies, particularly other catalogers, have been reluctant to make certain types of enhanced data available for rent, there are such advantages on both sides that the trend is likely to move toward more widespread availability of data. "They may look at it as proprietary now," Candito says of such data as dollar value, frequency information and product purchases. But that's probably not the way it's going to be in the not-too-distant future.
"The reins will continue to loosen," he says. That's a good thing for catalogers on the list acquisition and mailing side because these data allow catalogers to target and message more efficiently.
The Impact of the 'Net
With the Internet growing daily, catalogers have to start using it to positively affect their businesses—or risk being left behind. Catalogers should be asking themselves: How can we take the direct marketing business we have in place, and leverage it for the Web? "Look at Computer Discount Warehouse," Candito says. "They were a successful mailer. Now they've built a successful Web site, but they still have not stopped mailing their catalog."
The size of a company's catalog may decrease if its using the book more as a Web traffic builder, but for the most part, they're all still mailing, according to Candito.
On the list management side, Internet-generated names need to be treated differently: They need to be sourced separately on your file. Says Candito, "You need to separate out Internet-generated names who purchased from you before the Web [began] from new, Web-only buyers."
He adds this note: "There's more value right now to an Internet-generated name (it's an enhanced demographic). Down the road, I see more Internet-generated lists out there from catalogers."
In Conclusion
Overall, "The more technology there is, the more data there is, the more need there is for list brokers and managers who are up on what's happening," says Candito.
On the brokerage side, look for brokers who can compile this expanding pool of enhanced information very quickly. Also, look for brokers who are astute about making e-mail list recommendations and who have the ability to transfer information to you via the Internet.
List managers should be geared up to use new promotion tools including the Web and e-mail. And as always, they must be experienced in and familiar with your market.
