Catalogers’ Profits Are Being Squeezed. Part 1 of 2
There’s another hidden trend that’s putting pressure on response rates. Catalog house buyer files are getting a larger proportion of Web buyers. And Web buyers aren’t as receptive to frequent catalog mailings. These Web buyers are not being segmented very rigorously by catalog companies, co-op databases or list managers maintaining list rental files. The inevitable effect of adding large pools of Web buyers is that response rates will decline.
Next week in the final part of this two-part series on the financial and industry pressures catalogers are currently facing, and what they can do to survive and prosper, I outline three factors pressuring catalog response rates and profitability, as well as provide several tips to help catalogers maintain profitability in this difficult environment.
Jim Coogan is president of Catalog Marketing Economics, a Santa Fe, N.M.-based consulting firm focused on catalog circulation planning. You can reach him at (505) 986-9902 or email@example.com.