Attention Internet Marketers, Start up Your Catalog Engines Like This…
Voila, you’re now in the catalog business. Chances are, you’re making a small profit on your bounceback catalog and your catalog request mailings.
3. Mail your catalog to customers who’ve purchased from you in the past six months, or if you’re more brave, mail the past 12 months of buyers. Sort out your buyers by three-month increments, and again by one-time buyers and multibuyers (those who’ve ordered more than once). Analyze the results. Each segment should be profitable.
4. Next, add some list rentals to the picture. You do this once you find lists that have the right affinity to your customers. And the truth is, the cost to add more catalogs to your print run is inexpensive compared to the setup of your initial run. Assume your housefile will absorb the costs of producing the catalog. In other words, the housefile and bouncebacks have to cover the initial creative development expenses. Then calculate what your break-even point per catalog mailed would be if it didn’t have to cover the creative — only the incremental costs of printing the additional list-rental catalogs.
Once you do the break-even math, you’ll know exactly what response rate you’ll need to break even on an incremental basis. If you’re not sure how to calculate your breakeven, e-mail me and I’ll shoot you an Excel template.
5. Congrats. You’ve just entered the catalog business in four steps. Here’s the fifth step, the icing. Add the catalog channels into your marketing mix and you’ll likely see an increase in your customer lifetime value.
Multichannel shoppers have been proven to spend more money and purchase more often! Good luck!
Speak to you next week,
Jim Gilbert is president of Gilbert Direct Marketing, a full-service catalog and direct marketing agency. You can reach him at firstname.lastname@example.org or 561-302-1719.