What Is Organic Percentage, and Why Is It the Most Important Metric in Catalog Marketing?
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When I was vice president of database marketing at Nordstrom, we used matchback algorithms to better understand our business. That is, until our mail/holdout tests told us we were incorrectly matching orders back to housefile segments.
We executed mail/holdout tests over a three-month period, sometimes even a six-month period. Customers who didn’t receive catalogs continued to spend money, though not at the rate they spent when receiving catalogs. But they spent something. And by reducing mailings and reallocating advertising dollars into online marketing, we were able to grow our direct channel more profitably.
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Kevin Hillstrom
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