Wednesday, October 03, 2007

Direct mail when the postage is expensive

Multi-channel buyers-

They buy online, in store, as well as call center. They are the best.

Alternatives to cutting direct mail
1. Data (your own) is the most effective driver of strategy
-purchase activity, and what drove it there
-relational database - to see strengths and weaknesses of the plan
- know your competition in all channels... price, merchandising, etc.
2. Understand your media effectiveness
- what is their path to purchase? Get a source code...
- test to find the right media mix
- catalog buyers that then ordered on the phone or online
3. Increase top-line performance
- revisit/update merchandise - give reason to come back
- make every book (direct mail item) count - shift to mailing those with the best near-term value, because must break even on mailing within a year
- use matchbacks to know your true results
- improve housefile selection
Develop contact strategies based on channel preference and offer relevance
- and how likely they are to respond
Align circulation to category peaks
- Mail later for Xmas
- know when your competitor picks up orders, whatever
4. Decrease bottom line costs
- trim size, be more on target, co-mailing (!)!)!)!)!)!), make sure your list is clean
- optimize your list... if people are not responding, stop sending... may find 10-15% that you can drop out of circulation
- ability to spend in your financial area -- don't send catalog to poor people

If you block a competitor access to your info, then you're blocked from their info, too. Got it. This is for co-op, but may be going away.

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