7. Maximize your housefile. Add a mailing — i.e., consider adding a drop or two to certain buyer segments based on their RFM behavior. Reactivate “old” buyers. Don’t reduce your RFM. Do everything possible to leverage your strongest asset: your housefile.
If selecting dollar by list or average dollar, make normal selects, and then go back and select high life-to-date buyers that weren’t already selected. It’s difficult to overmail certain segments of
8. Don’t take a leap of faith — test. Just about everything can be tested. Don’t eliminate your bind-in order form/envelope, for instance, without running an A/B split test. Don’t convert to a slim-jim format without testing that first, too. And don’t convert from coated paper to super cal without seeing how it will impact the bottom line.
Small mailers can test, too. Catalogers often are motivated by the amount of money they can save without consideration to the impact these choices can have on results. What you give up in gross profit dollars can more than offset any cost savings.
Stay the course! Those who cut circ, reduce page count and make other radical changes without testing will pay the price. Maintain your 12-month buyer count, and don’t let it drop below the previous year. Don’t adjust mail dates to try to save money. Remain focused on growing your business.
Stephen R. Lett is the president of Lett Direct Inc., a catalog consulting firm specializing in circ planning, forecasting and analysis. He’s the author of the Catalog Success-published book “Strategic Catalog Marketing.” You can reach him at (302) 539-7257 or email@example.com.