Direct Gardening Ten Opportunities For Catalog Marketers 11 Jan26

Hathaway & Lane Direct, LLC MGA Winter Conference New Orleans – January 26, 2011 Presented by: Ken Lane”Ten Opportunities for Classic Catalog Marketers – What’s Ahead in the Coming Decade”

Ten Opportunities for Classic Catalog Marketers… The exigency case is a sign that the PRC and some members of Congress “get” the catalogue industry and are done handing out money to the Postal Service that they cannot legitimately justify needing. HATHAWAY & LANE DIRECT 2

Ten Opportunities for Classic Catalog Marketers… The exigency case is a sign that the PRC “gets” the catalog industry… …the USPS needs to be more accountable …some Senators recognize the jobs/employment impact …has a greater understanding of catalogs versus other standard mail HATHAWAY & LANE DIRECT 3

Ten Opportunities for Classic Catalog Marketers… Your catalogue is currently driving more business than you think. HATHAWAY & LANE DIRECT 4

Ten Opportunities for Classic Catalog Marketers… Your catalog is driving more business than you think… …Most sophisticated match back programs are proving these metrics to be true. …Measure & Manage using a Segmentation approach for who does get your catalog and how often …According to recent DMA research, “our data suggests a consensus among successful marketers that there are consistent and integrated standards across all channels…” HATHAWAY & LANE DIRECT 5

Ten Opportunities for Classic Catalog Marketers… Your catalog is driving more business than you think… …A coordinated multichannel strategy, led by a mailed catalogue, will outperform a series of disjointed tactics every time …According to L.L. Bean, their catalog “is still the face of the company and the primary means of interacting with its customers.” While Beans online sales surpassed catalog sales, their data proves that many customers look through the catalog before ordering online. HATHAWAY & LANE DIRECT 6

Ten Opportunities for Classic Catalog Marketers… Use email to support direct mail All the data suggests there is a lift in response rates HATHAWAY & LANE DIRECT 7

Ten Opportunities for Classic Catalog Marketers… Your ability to broadcast your Social Marketing efforts costs very little on the printed page, but has a far longer shelf life than most tweets. HATHAWAY & LANE DIRECT 8

Ten Opportunities for Classic Catalog Marketers… Your catalog has a longer shelf life than most tweets… …The print experience cannot be duplicated. It provides immediate scale and reach. …It can portray the essence of your brand better and in a more highly memorable way synergizing images & words. …It creates an environment of contemplation & learning rather than an endless stream of sound-bites. HATHAWAY & LANE DIRECT 9

Ten Opportunities for Classic Catalog Marketers… Your catalog has a longer shelf life than most tweets… …We know how to Measure & Manage catalog results/ROI – through Square Inch Analysis. …Social media marketing is rapidly becoming a critical mechanism to influence & drive key business objectives. HATHAWAY & LANE DIRECT 10

Ten Opportunities for Classic Catalog Marketers… …Facebook link to catalog request. HATHAWAY & LANE DIRECT 11

Ten Opportunities for Classic Catalog Marketers… Catalog mailers have a stronger voice in DC than they ever have. HATHAWAY & LANE DIRECT 12

Ten Opportunities for Classic Catalog Marketers… Catalog mailers have a stronger voice in DC with the ACMA… …Exigency rate case win. …Rate case 2011 – about 1.0%. …Strides are being made to separate catalogs from other standard class mail. …New Postmaster General Pat Donahoe told the ACMA that it’s his goal to foster growth in commercial mail. HATHAWAY & LANE DIRECT 13

Ten Opportunities for Classic Catalog Marketers… There is no more mailbox glut HATHAWAY & LANE DIRECT 14

Ten Opportunities for Classic Catalog Marketers… There is no more mailbox glut… …The “Abacus Effect” is a thing of the past. …Many of those that are mailing have reduced page counts …less competition in the mailbox means increased likelihood to read & respond HATHAWAY & LANE DIRECT 15

Ten Opportunities for Classic Catalog Marketers… The upside of the Postal Accountability and Enhancement Act of 2006 is that future increases are controlled by the inflation/CPI rates. HATHAWAY & LANE DIRECT 16

Ten Opportunities for Classic Catalog Marketers… The upside of the Postal Accountability and Enhancement Act of 2006 … …Fed policy has managed inflation to less than 3%. …The recession and slow recovery put further downward pressure on this number. …Standard Flats are proposed to be increased by just 0.8%, Carrier Route Flats by 1.4%, and High-density flats by 0.4%. HATHAWAY & LANE DIRECT 17

Ten Opportunities for Classic Catalog Marketers… PPC inflation. It’s more than you think. HATHAWAY & LANE DIRECT 18

Ten Opportunities for Classic Catalog Marketers… It’s more than you think … PPC "Inflation" 45% 39% 37% 40% 36% 35% 30% 25% 20% 19% 20% 14% 15% 10% 5% 0% Sep Oct Nov Term A Term B HATHAWAY & LANE DIRECT 19

Ten Opportunities for Classic Catalog Marketers… Paul Vogel knows that the future of the USPS needs more catalogue mailers & mailings. HATHAWAY & LANE DIRECT 20

Ten Opportunities for Classic Catalog Marketers… Paul Vogel … …Expect to see more volume incentives and “sales” … …for mailers of all sizes… at all times of the year …fully understands that much of the USPS volume that has been lost to the internet the past several years, but that catalog volume can come back. HATHAWAY & LANE DIRECT 21

Ten Opportunities for Classic Catalog Marketers… Your Customer’s Mailbox does not have a Spam Filter HATHAWAY & LANE DIRECT 22

Ten Opportunities for Classic Catalog Marketers… Mailbox does not have a spam filter… …Email is losing its predictability. …According to Return Path, nearly 20% of emails fail to deliver - In the first half of 2009, 19.9% such emails never reached consumer inboxes in the US and Canada. 3.5% went to “junk” or “bulk” email folders 16.3% were missing or not delivered at all -- with no hard bounce message or other notification. …Only emails that reach a subscribers inbox can be opened, clicked and converted to sales. Each ISP has their own criteria for inbox placement. HATHAWAY & LANE DIRECT 23

Ten Opportunities for Classic Catalog Marketers… Done right, integrating your catalogue & your website will improve your bottom line. HATHAWAY & LANE DIRECT 24

Ten Opportunities for Classic Catalog Marketers… Integrate your catalogue with your website … …Leverage your brand, your voice and the channel …Use “placement” best practices to deliver these messages …includes your social media and mobile initiatives HATHAWAY & LANE DIRECT 25

Integrate your Catalog and your website… Brand standards need to be the same HATHAWAY & LANE DIRECT 26

Integrate your Catalog and your website… Drive customers from the selling space of your catalog to the less costlier space on the web HATHAWAY & LANE DIRECT 27

Integrate your Catalog and your website… Leverage your voice & credibility HATHAWAY & LANE DIRECT 28

Integrate your Catalog and your website… Videos HATHAWAY & LANE DIRECT 29

Integrate your Catalog and your website… Expanded product assortments HATHAWAY & LANE DIRECT 30

Integrate your Catalog and your website… Leverage emotion & humor HATHAWAY & LANE DIRECT 31

Integrate your Catalog and your website… Long format story telling HATHAWAY & LANE DIRECT 32

Ten Opportunities for Classic Catalog Marketers… How to make connect… …Leverage your SQI hot spots Cover Back Cover Page 2-3, IBC Footers HATHAWAY & LANE DIRECT 33

Ten Opportunities for Classic Catalog Marketers… How to make connect… …Messaging to drive… Limited inventory items More selection Latest items Clearance and savings (return often) E-mail alerts Feedback Product Reviews Editorials and advice Community/blogs/Facebook HATHAWAY & LANE DIRECT 34

Integrate your Catalog and your website… Limited inventory HATHAWAY & LANE DIRECT 35

Integrate your Catalog and your website… Use footer space for more than phone number HATHAWAY & LANE DIRECT 36

Integrate your Catalog and your website… Visually show site & site images on the page HATHAWAY & LANE DIRECT 37

Integrate your Catalog and your website… Promote more engagement/involvment HATHAWAY & LANE DIRECT 38

Integrate your Catalog and your website… All of the above HATHAWAY & LANE DIRECT 39

Hathaway & Lane Direct – Clients & Capabilities

Clients & CapabilitiesHathaway & Lane Direct possesses a unique set of multi-channel marketing,strategy, analytical and research skills to build highly successful targetedmarketing programs that: – Have, at their core, solid research and data mining that inspire innovative strategies – Are driven by a blueprint for action – Are implemented intelligently and creativelyCombining marketing discipline and creativity, we innovate then implementmarketing strategies & tactics that consistently perform according to our forecastsand are recognized by growth-oriented organizations as critical to their success.Core principles: – Measurement is critical at all levels – Customer insights should drive strategy – Marketing Programs are substantiated by Data – Marketing Programs need to be Segment drivenHATHAWAY & LANE DIRECT 41

Clients & Capabilities – Gardening MarketersCapabilities• Square Inch Analysis• Marketing Research & Analysis• Multi-Titled Branding• Circulation/Contact Planning• Sales/Inventory Forecasting& Analysis• Pricing & Gross Margin Planning• Business Opportunity AssessmentHATHAWAY & LANE DIRECT 42

Clients & Capabilities – Food & Gift MarketersCapabilities• Customer Segmentation• Business/Strategic Planning• Pay-per-Click Marketing• Email Marketing• Product Sales & Inventory Forecasting• Contact Management/SegmentationHATHAWAY & LANE DIRECT 43

Clients & Capabilities – Travel & HospitalityCapabilities• Contact Management/Segmentation• Best Customer Model Development• Acquisition Due Diligence• RFP Development & Management• Variable Data Printing• Public RelationsHATHAWAY & LANE DIRECT 44

Clients & CapabilitiesCapabilities• Contact Planning• Database Analysis• Paper/Print Buying• CRM Systems• Merchandise Planning/Pricing• BTB or BTC support• Variable Data PrintingHATHAWAY & LANE DIRECT 45

Marketing Solutions Ken Lane klane@hathawayandlane.comPO Box 1003 – Litchfield, CT 06759 – (860) 567-5275 www.hathawayandlane.com

Direct Gardening Ten Opportunities For Catalog Marketers 11 Jan26

by HATHLANE on Jan 27, 2011

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Direct Gardening Ten Opportunities For Catalog Marketers 11 Jan26 — Presentation Transcript