Our direct business is significantly smaller than our retail business, so this has been a key area of focus for us. We’ve done a lot of work to cross-sell customers, including gift recipient marketing programs, in-store catalog displays, retail blow-ins in catalogs surrounding the store, driving retail customers to the Web, and cross-selling them to send hams as gifts.
Minix: Most of our customers still order by phone; about 20 percent order on the Web. If we’re able to launch new sites for our three catalog brands this year, I hope to increase that to 30 percent.
Chinn: We don’t know. We participate in a Web survey that [list firm] Millard does quarterly that gives us feedback on how people are using the Web site, and how we rank against our competition. I don’t see any big changes there yet. We’ve always done fairly well in that respect.
As to how customers more broadly perceive Garrett Wade, that’s something we’ll be doing specific research on this year.
Catalog Success: How will the postal rate increase affect your budgeting and mailing plans for this year?
Kiss: It’s caused us to rethink our mail plan, but we still feel that it’s important to have catalogs in the mail. We’ve done some comingled mailings over the past several holidays and found them to be a great way to save money and still allow us to mail more effectively.
Minix: It’s going to be a really difficult year for folks who want to maintain or increase profitability. I’ve been with two companies working on budgets for 2007, and there’s no way to make the profit numbers without cutting the circulation. We’ve been over-prospecting for a few years, so we’re going to cut circulation by about 50 percent, which reduces the marketing budget by a similar amount.