Arandell Corporation

Gary Sierzchulski, VP, Arandell Data Services

Well, as you all know, the USPS is strongly considering offering a discount this summer if you increase your circulation over the same period of time last year.  While this is a great step for the Postal Service in starting to finally recognize the needs and issues of catalogers, it should by no means be the key factor in deciding whether or not to increase prospecting. Right now, regardless of an incentive, this is the best time to build your brand. Consider the following reasons:

•There are fewer catalogs in the mail right now so yours will likely get more attention and have less competition than at any time since after September 11, 2001. Making it smaller and cheaper does not necessarily mean it is better. Will making your retail store smaller and “cheaper” bring in more customers?

•If you believe many of the economists, there are signs and reports beginning to show that consumer confidence is coming back. Again, this is a great time to position your brand, show the consumer that you are still out there and demonstrate that you are in a position to offer value. You need to be ready when the consumer is ready!

•We all heard about the consumer’s lack of loyalty. Many of our analyses, however, show that if you communicate with your customers by telling your story and creating value and positive feelings on a regular basis using all channels, they will be there for you and will be less sensitive to discounts.

•Your house files are shrinking, or at best, remaining stagnant. As we all know, this cannot be the case for much longer. You have two choices; increase prospecting effectively or lose market share and see your business decline. We have seen many catalogers go out of business in part to this short-sighted approach. Don’t forget; prospecting also means contacting inactive customers in your file who have done business with you in the past. Consumer tastes, interests, lifestyles, etc. constantly change, and in the past year, many have changed multiple times.

•The tools and approaches that are available to help you accomplish this are more effective than ever. They are also more complex, mainly due to the fact that we now have to consider multiple channels, contact frequency, lifestyle changes, etc. These are all part of a complex equation that can be solved with assistance from your direct marketing partners.

•Use all channels to communicate with customers. The king is not dead.  Catalogs still continue to be THE driver for sales in almost all analysis we do. More than ever, however, customers are receiving, expecting and wanting to be contacted from various channels, so you need to make sure you’re hearing what they are saying and responding accordingly.

Now is the time to get back into the game regardless of a postal incentive. We can help you to do it right by taking a systematic approach; analyzing what has worked or hasn’t worked in the past and developing a strategy to gain market share. It is not a race, but if you don’t get to the starting line soon, you will be left behind. And by the way, if any of you have tickets for the August 29 Buffett concert I’m interested.