Returns: A Growth Industry, Part 2 of 2
Circulation Planning and Returns
Many multichannel marketers have a housefile segment of customers who’ve purchased once and returned the product. In your database, they’re “zero dollar, zero frequency” customers. I’ve mailed this segment for a number of mailers and been profitable. You may want to test this segment, as well. You’ll likely see a higher return rate from this segment as some people chronically buy and return product.
But when you test, you may find that despite the higher return rates, enough product stays in the customers’ hands to meet your profit expectation. This segment needs to be in line with your list rental goals. Keep in mind, the higher return rate is offset by the fact that there’s no list rental fee.
Do you have better ways to reduce returns in your organization? Let me know by contacting me at the e-mail address below or posting a comment on this site by clicking on the “Post a comment” icon below.
Jim Gilbert is president of Gilbert Direct Marketing, a full-service catalog and direct marketing agency. His LinkedIn profile can be viewed at www.linkedin.com/in/jimwgilbert or you can post a comment here or e-mail him at firstname.lastname@example.org.
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.