Catalog Marketing Surge Is Fueled by Digital's Tracking Crackdown and Costs

AccuList® has a long list of consumer catalog clients, and we've noted renewed interest in traditional print catalogs, especially among direct-to-consumer (DTC) brands. Why? One reason is Apple's crackdown on the ability of consumer data platforms, such as Google and Meta's Facebook, to track and target consumers, per a recent Ad Age report. For example, Insider Intelligence data shows DTC brands cut ad budgets for Facebook and Instagram by almost 8% between January 2021 and January 2022, and increased offline marketing from 12% to 15% of spending. 

Rising acquisition costs for digital channels are another factor driving expanded catalog budgets. A SeQuel Response survey found 44% of  DTC brands boosted direct mail spending in 2022, with more than half blaming the rising customer acquisition costs of digital channels. 

Catalogs also are seen as better retention tools. Ad Age cites menswear brand Todd Snyder's report that its catalog buyers tend to purchase from the brand for longer periods and to purchase more items, and that its annual holiday catalog is used to "bring back lapsed customers." 

Finally, unlike easily ignored digital advertising, catalogs are more likely to capture and keep consumer attention. Kara O'Brien, head of offline marketing at furniture and home goods retailer Wayfair, explained to Ad Age that their seasonal catalog gives "that extra real estate...to tell richer product stories and invite customers into all that Wayfair has to offer. And it has staying power—a tangible print piece is something consumers can keep, bookmark, revisit and even share with family and friends." 

If you're thinking of joining the trend by adding or expanding catalogs in your marketing mix, AccuList can help. See https://www.acculist.com/consumer-catalogs/

Print Catalogs Still Key Multichannel Merchant Tool

Despite the growth of e-commerce, printed catalogs retain their important marketing role, and recent data from Multichannel Merchant's 2018 State of the Catalog survey highlights that trend. A big majority of the merchants surveyed (84.2% ) by Multichannel Merchant (MCM) said they continue to use print catalogs as a channel to reach customers. Their commitment to the traditional print catalog comes from its value as a multipurpose marketing tool. For example, branding led the ranking of main print catalog goals, with an 8.86 out of 10 rating. Branding was followed by web and mobile traffic driver and customer retention (both ranked at 8.14), reactivation (7.57), and prospecting and store traffic spur (6.43). Meanwhile, though measuring catalog effectiveness remains a matter of debate among merchants, a majority (57.1%) do have a formal measurement program, whether via matchbacks, tracking codes, response analysis or segmentation testing. Although merchants continue to seek maximum ROI by testing page counts and formats, the majority surveyed by MCM (83.3%) maintained the same page counts in 2017, and 50% also reported the same circulation numbers. Looking ahead to 2018, 50% planned to increase page counts, but respondents split into thirds over increasing, decreasing or maintaining circulation size. As far as frequency, 83.3% said they would hold it steady for 2018. Most merchants surveyed (57.1%) rely on both a digital catalog and a standard 8.5X11 print catalog. But many also use a "slim jim" print format (14.3%) or, especially for B2B, annual "big books" (also 14.3%). Some retailers report they send out other types of direct mail pieces, such as small gatefolds or postcards with special offers. For more on the report, go to the full post at http://www.acculistusa.com/print-catalogs-still-a-key-multichannel-merchant-tool/

13 Ways to Use Direct Mail in 2016 Marketing

Here's a New Year's marketing resolution that we would suggest: Make 2016 a year of direct mail successes. Unsure of how to get the most ROI from "snail mail" today? A recent Target Marketing magazine article by Summer Gould conveniently lists the most effective uses of direct mail--13 ways to leverage this powerful tool for effective acquisition, retention and brand promotion. Here are just the top five: 1) generate traffic to a retail location, website or event; 2) gather sales leads by targeting your most qualified, active audience with a high response tool; 3) counter competitive offers by reaching out to competitor's prospects without broadcasting your strategy; 4) boost customer loyalty with exclusive offers and rewards; and 5) turn customers into sales generators by garnering and rewarding customer referrals. The list includes ways to fit direct mail into partner marketing and multichannel marketing efforts, with e-mail, social media, mobile and more, and ends up at No. 13: build brand awareness with what research shows is the most trusted form of marketing. For all the ways to best use direct mail in your marketing plan, read the complete article at http://www.targetmarketingmag.com/post/13-ways-direct-mail-works-best/

Marketers Embrace 2015 Spending, Including Mail

Direct marketers have finally left behind recession-inspired cautionary spending, with many in a "full-steam growth mode," per Target Marketing magazine's "2015 Media Usage Survey." And the good news for direct mail data professionals like AccuList USA is that direct mail retains a key role in media budgets. Per the survey, about 44% of business-to-business and business-to-consumer marketers reported that their media budgets are staying the same as in 2014, with 32% increasing spending and only 12% planning a budget decrease. Where are they spending? Most respondents (65%) are increasing e-mail spending, and most respondents (61%) plan to increase social media engagement investments in 2015. Search engine marketing (SEM) and optimization (SEO) also both continue as high priorities, especially for acquisition, so that content marketing, video and mobile optimization—each offering strong search benefits—were cited as high priorities, too. However, snail mail is still a critically important channel for most direct marketers. Overall, 30% plan to increase mail budgets and 37% will keep spending the same compared with last year. More than half are still using direct mail for both acquisition and retention. Yes, 11% of respondents reported decreasing direct mail budgets, but, as Target Marketing sums up in its report, that doesn't mean direct mail is withering away but that "newer strategies are factoring into the direct marketing equation, and its share is being spread around to other corners of the media landscape." For more detail, read http://www.targetmarketingmag.com/article/target-marketings-media-usage-survey-2015/

Is Your Marketing Hobbled by These Data Missteps?

Make sure your "data-driven" marketing isn't undermined by data mishandling. A recent Adweek article outlined five of the most common blunders. At the top of the list is failing to take advantage of the deeper demographics being culled in this big-data era. Going beyond age and gender can reap big returns. An example from the article: The Neustar Global Media Intelligence Report for 2013 found retail marketers that targeted campaigns according to attributes like home value and brand of car earned a 500% performance lift over non-targeted campaigns. Second, marketers can focus on the wrong metrics, choosing "vanity metrics," such as Facebook fans, instead of behavioral data linked to conversions, such as navigational paths and brand preferences. A third data misstep is focusing on shiny new digital data without integrating offline inputs (such as retail stores), creating a false picture of marketing's multichannel ROI. Fourth, marketers can get stuck looking at past data to the neglect of predictive modeling and forward planning. A forward-thinking success story from the article: American Express used predictive analysis and behavioral data to identify at-risk customers, for a 740% increase in attrition-combating efficacy. Finally, organizations can fail to invest in crucial data management and analysis skills, and surveys of executives find a majority admitting as much. Do you recognize areas for improvement in your own organization? For the complete article, with links to relevant studies, see http://www.adweek.com/brandshare/5-ways-marketers-are-mishandling-data-156449

Forrester Urges Refocus on Customer Needs

It's time to make some New Year's marketing resolutions. A recent Forrester Research report prompts one good goal for 2014: Put customer needs ahead of the latest "shiny object" technology or channel. Complexity, technology faddism, and a disconnected entrepreneurial culture are slowing marketers down, yielding bad data, duplicating integration costs, and ultimately creating a poor-quality experience for customers, researchers warn. Forrester urges marketers to adopt a clear strategy focused on customers’ needs, and suggests these steps to success: Select a target customer and focus on a customer life cycle stage; identify the fundamental customer need(s) to fulfill and what benefit(s) customers want next; explore how to deliver these benefits in a technology-agnostic manner; then select the desired delivery method to develop, commission, or license; and make sure to set key performance indicators (KPIs). Pretty basic, right? But some marketers, overwhelmed by emerging technologies and channels, and fearful of being trumped by competitors, are forgetting basics in the rush to embrace hot new marketing tactics. By failing to aim at the only target that counts--the customer--they risk costly marketing misses. See the MediaPost article on how to refocus on customers in the year ahead: http://www.mediapost.com/publications/article/211410/forrester-offers-seven-steps-to-better-marketing.html

Consumer Digital Research Undermines Brand Loyalty

Most loyalty programs are no match for today's breed of digitally empowered consumer, confirms the latest study on brand loyalty from Acxiom, a marketing services and technology leader, and Loyalty 360 – The Loyalty Marketer’s Association. Because consumers can use digital tools and technologies to access ever-growing volumes of information about products, prices, customer satisfaction and availability, virtually all brand-related metrics, including loyalty, are in serious decline, the study reports. Only 25% of consumers now report loyalty to a brand. Marketer confidence in loyalty programs has also waned. While 84.5% of executives surveyed said they use customer retention marketing strategies, barely half believed their strategies are working. For details, see http://www.prweb.com/releases/2012/3/prweb9293625.htm

Acquisition, Data Integration Lead Marketing Agenda

In good and bad times, all marketing roads still lead to data. In a sign of improving economics, acquiring new customers is now the top challenge for marketers, according to the 2011 mid-year marketing trends report by Kern Organization, a Los Angeles-based direct marketing agency. Recession-battered firms previously were focusing more on retention. Some 90% of the 400 top marketing executives surveyed agreed that better integration of offline and online data collection with analytics is key to success now. For details, see
http://www.prnewswire.com/news-releases/2011-mid-year-marketing-trends-study-reveals-top-three-marketing-challenges-130618818.html

Don't Lose Sight of Profit While Chasing Prospects

Marketers who focus their analytics on prospecting are making a mistake, warns Forrester Research's Srividya Sridharan. By putting too much stress on channel metrics, they can neglect the retention and long-term value measurements that generate lasting profitability. For more, go to http://chiefmarketer.com/database/mining/best-practices/analytic-acquisition-forrester-0811rhl3/?YM_MID=1251732&YM_RID=ccplato%2540yahoo.com

Too Many 'Touches' Can Chase Customers Away

Per a recent study by a UC-Riverside marketing prof, bombarding customers with e-mails, phone calls and mailers risks driving them away. Traditional snail mail remained the most effective contact medium since customers were less annoyed by it than excess e-mails and calls. For a comparison of online and offline effectiveness, see my article http://www.acculistusa.com/about_us_news_archives.php?showArticle=20