If I Only Had a List to Start My Catalog Business!
4. If you’re going to invest in catalog marketing, develop a fully cooked plan that includes a mail plan by year, by drop and by list — with cash flow estimates, P&Ls and the aforementioned LTV estimates. A plan by drop and by list includes many lists, including your housefile and rented lists.
5. Expect to invest in acquiring new customers for a number of years. Assume that you need to fund your catalog for three years minimum until you have reached critical mass. I define critical mass as enough customers to generate enough sales per catalog to cover your prospecting efforts. Said another way, that’s your break-even point.
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 email@example.com or 561-302-1719.
Jim Gilbert has been creating direct marketing programs that drive superior ROI for almost 30 years. Fluent in consumer or B-to-B, creative, operations, and analytics, he marries the strategic and tactical sides of direct and social media marketing in a seamless fashion that gets results. He's CEO of a multidiscipline direct marketing agency, Gilbert Direct Marketing, Inc., which focuses on direct mail, catalogs, DRTV, telemarketing, print, alternative direct marketing media and social media marketing. Jim has been involved in start-ups, expansions and turnarounds, and is an expert in helping multichannel marketers get to the "next level." He's a former adjunct professor, teaching direct marketing at Miami International University, and is President of the Board of Directors of the Florida Direct Marketing Association. Jim loves to talk direct marketing, and has done many lectures on direct and social media marketing.