Catalogers Speak Out, Part 2 of 2

Last week, in the first part of our coverage of the Catalog Success Latest Trends Report (which will appear in the October issue of Catalog Success, out this week), we ran some of the feedback we received from the quarterly survey we produce in conjunction with multichannel marketing ad agency Ovation Marketing. In particular, last week’s feedback represented how catalogers responded to several questions on mailing and marketing practices affecting their industry. This week, we bring you more feedback, with respondents’ thoughts on why catalog circulation levels have changed this year compared to last year.

(For part 1, click here. And for the complete set of numerical results from the survey, please go to our Web site, www.CatalogSuccess.com the first week of October onward.)

By how much is your circulation changing this year compared to last year?

* 23.9 percent said it was unchanged;

* 15.2 percent said it increased 1 percent to 5 percent;

* 10.9 percent said it increased 6 percent to 10 percent;

* 10.9 percent said it increased 11 percent to 25 percent;

* 3.3 percent said it increased 26 percent to 50 percent;

* 1.1 percent said it increased greater than 50 percent;

* 8.7 percent said it decreased 1 percent to 5 percent;

* 13.0 percent said it decreased 6 percent to 10 percent;

* 8.7 percent said it decreased 11 percent to 25 percent;

* 2.2 percent said it decreased 26 percent to 50 percent; and

* 2.2 percent said it decreased by more than 50 percent.

As for some of the reasons why circulation increased, decreased or remained the same this year, respondents gave the following answers:

* housefile increase;

* buying more lists;

* more interest in our product offerings;

* due to our lifetime value, we had to decrease circ to meet our profit target;

* economy — lower sales meant less investment dollars available;

* significant increases in expense: postage, paper, ink and fuel surcharge increases have forced us to cut some marginal circulation. Consumers don’t seem to be spending as much, which has also caused us to re-evaluate our acquisition efforts;

* improved prospecting techniques;

* higher paper and postage make mailing to marginal customers/lists unprofitable;

* combating postal increases, less prospecting due to the current poor economic conditions;

* decreased circ to spend more money on our Web site;

* added more products, increased advertising in magazines for catalog request purposes;

* lower response rates;

* we’ve generated new customers via magazine ads and our Web site;

* decreased circ in Web-buying segments;

* we weren’t mailing last year, but are now;

* decreased acquisition circulation to hedge against challenging economy and rising costs;

* more names added to our mailing database;

* lower membership rates;

* increased sales, increased target market;

* was actually cut early in the year, but we’ve been adding back circ as conditions improve;

* more customers from word-of-mouth advertising;

* buzz marketing;

* we send to targeted customers who’ve spent a certain amount. We’re adding all the time, but some accounts have little activity;

* can’t afford to do more … scared to do less;

* growing house list from advertising and convention/conference response;

* we’re a small company growing slowly;

* database cleanup; and

* more selective to prospective customers.