Catalog Marketing: Measuring Performance and Reaching Your Audience
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Catalog Marketing: Measuring Performance and Reaching Your Audience
- 1. E-mail • Direct Mail • Digital Marketing • Sales Tools • Funding Data • Creative Services April 25, 2013 Catalog Marketing: Still a Winner in Your Marketing Mix
- 2. Welcome! Catalog Marketing: Still a Winner in Your Marketing Mix Sponsored by: Learn more about Agile at www.agile-ed.com
- 3. Introduction of Presenters Rafael Mendez, Dir. Business Development & Campaign Strategy, Evan-Moor Educational Publishers Rafael oversees all of Evan-Moor’s campaign strategies, which include directing ecommerce, direct mail and e- mail marketing. In this role, Rafael has been instrumental in expanding Evan- Moor’s customer outreach and profitability. Mendez joined Evan-Moor in 2007, bringing a decade of strategic marketing experience. He earned his BA in international studies and MBA in management.
- 4. Introduction of Presenters Tim Ridgway, Vice President, Marketing, Califone International, Inc. Tim oversees marketing for Califone, including catalogs, website, social media, tradeshows, PR, advertising, B2B and B2C support. He spent the previous 10 years at Remo, the leading global drumhead and percussion manufacturer; where he managed its media and public relations. He holds a Bachelor of Science degree in Economics from the University of California at Irvine.
- 5. Introduction of Presenters Mark Skup, Senior Vice President, O’Keefe Henry Direct, Inc. With O’Keefe Henry Direct, Mark Skup has been helping small to mid-sized catalog companies for the last 15 years. Mark’s entire career has been in the Direct Marketing and Catalog industry. Prior to O’Keefe Henry Direct he held senior level marketing positions with some of the largest and most sophisticated mailers in the country such as The Signature Group, Bradford Exchange, and Garden Way/Troy-Bilt.
- 6. CATALOG CHALLENGES AND MEASURING PERFORMANCE Rafael Mendez and Mark Skup
- 7. Poll #1 Do you sell to: o Individual Teachers o Schools/Districts o Both
- 8. Poll #2 Do you accept purchase orders? o Yes o No
- 9. 5 Catalog Challenges in our Market 1. Determining who to mail to when each of our customers may have multiple participants in the purchase cycle. Data may be limiting. Customer Participant Rev. Per Piece Washington Elem. End User $0.80 Influencer $3.50 Purchase Approver $6.00 Buyer $10.00
- 10. 5 Catalog Challenges in our Market 2. Measuring performance and making data- driven decisions is difficult! Sometimes we need to make assumptions. Catalog Sent Order Received Mail To Bill To Ship To Rafael Mendez Bill Evans Evan-Moor Evan-Moor Attn: Rafael Mendez 123 Main 18 Lower Ragsdale 18 Lower Ragsdale Monterey, CA 93940 Monterey, CA 93940 Monterey, CA 93940 Are you able to match this catalog recipient to the order? Example #1
- 11. 5 Catalog Challenges in our Market 2. Measuring performance and making data- driven decisions is difficult! Sometimes we need to make assumptions. Catalog Sent Order Received Mail To Bill To Ship To Rafael Mendez Bill Evans Rafael Mendez Evan-Moor Evan-Moor 18 Lower Ragsdale 18 Lower Ragsdale 18 Lower Ragsdale Monterey, CA 93940 Monterey, CA 93940 Monterey, CA 93940 Does matching at the Ship To level make sense for your business. Example #2
- 12. 5 Catalog Challenges in our Market 2. Measuring performance and making data- driven decisions is difficult! Sometimes we need to make assumptions. Catalog Sent Order Received Mail To Bill To Ship To Rafael Mendez Bill Evans Bill Evans Evan-Moor Evan-Moor 18 Lower Ragsdale 18 Lower Ragsdale 18 Lower Ragsdale Monterey, CA 93940 Monterey, CA 93940 Monterey, CA 93940 Does matching at only the address level make sense for your business. Example #3
- 13. 5 Catalog Challenges in our Market 3. Increasing catalog costs As costs increase, so must your catalog revenue to maintain catalog performance! Its not enough to simply: • Increase budgets • Reduce mail volume You need to: • Manage expense increases with response growth • Decrease expenses while maintaining response
- 14. 5 Catalog Challenges in our Market 4. Decreasing catalog conversion rates o DMA has noted a 25% decrease in catalog response rates between 2003 and 2011 o There has been an explosion of response mediums in the past decade, including online advertising and social media The catalog still produces the majority of campaign generated revenue for Evan-Moor.
- 15. 5 Catalog Challenges in our Market 5. School-market order curve o The longer your purchase cycle and the more campaigns you deploy, the more difficult it is to measure performance
- 16. Determining the right mix 1. Where to invest? (catalogs, email, social media, PPC, etc.) o Utilize profitability metrics like profit per order across all direct mediums o Understand the penetration you can have with your campaigns o The school market universe is easily accessible for use in direct mail!
- 17. Determining the right mix 2. Overall catalog volume and frequency o Maximize your customer list using revenue and profit per piece mailed In-House Buyers Qty RPM PPM Total Rev Total Profit 2012 Catalog 1000 $10 $6 $10,000 $6,000 Total $10 $6 $10,000 $6,000 In-House Buyers Qty RPM PPM Total Rev Total Profit 2013 Catalog 1 1000 $10 $6 $10,000 $6,000 2013 Catalog 2 1000 $4 $2 $4,000 $2,000 Total 2000 $7 $4 $14,000 $8,000 40% Increase 33% Increase
- 18. Determining the right mix 2. Overall catalog volume and frequency o Establish a prospecting threshold by determining an acquisition expense or Cost Per New Customer (CPNC) that your business can sustain
- 19. Measuring Performance – New Customer Acquisition Cost Calculating New Customer Acquisition Cost Qty Mld Ords RR % Deman d $ Av g Or d Cogs/Var Fulf (50%) Mrkt Cost ($.65) Net Cont $ CPNC 100,000 1,000 1.0% $75,000 $75 $37,500 $65,000 ($27,500) $27.50
- 20. Measuring Performance – Estimating Lifetime Value Use existing data from 0-12 month buyer segments Qty Mld Ords RR% Deman d $ Av g Or d Cogs/Var Fulf (50%) Mrkt Cost ($.55) Net Cont $ PPM 25,000 2,500 10.0% $187,500 $75 $93,750 $13,750 $80,000 $3.20
- 21. Measuring Performance – Balance Between CPNC and PPM o Cost Per New Customer = $27.50 o Profit Per Piece Mailed = $3.20 o Payback on new customer acquisition cost in 8-9 mailings
- 22. REACHING AND ENGAGING YOUR AUDIENCE Tim Ridgway
- 23. B2B • How to reach your audience? • Increasing number of competing channels • Print vs digital? • Consider an alternate filter of complementary channels
- 24. Califone Catalog Distribution • Push & Pull • Print run includes B2B catalogs with custom front and rear covers
- 25. Competition to Catalog • Paper is no longer the sole source of information • Online information continues to grow • Is digital’s growth sustainable?
- 26. Growth of Digital • Drop in traditional PCs • Rise in mobile devices • Today, half of total US pop. uses a mobile device • Mobile media users in US grew 19% to 116 million over PY
- 27. Mobile
- 29. Expand Your 2-Dimensional Catalog How ? QR Codes! • What are they? • How are they used? A QR code can link to a website, a phone number, video, a blog or a podcast Kaywa Microsoft
- 32. Expand Your 2-Dimensional Catalog • 51 QR codes used in the 2013 Califone catalog • 1st QR Code Contest at Infocomm , 2011. Read more by clicking to bit.ly/lX1L49
- 33. Expand Your 2-Dimensional Catalog • Post your catalog online • Use of catalog for online SEO benefits (the process of improving the quantity or volume of traffic to a website from search engines from natural or unpaid (“Organic”) search results • http://www.califone.com/catalog/catalog2013.php can post with ads or without , faster download than a PDF – easier to access
- 35. How do Users find Websites • Directly by knowing your audience • Links • Organic searches • 85% of all Internet traffic is referred to by search engines • 90% of all users don’t look past the first 30 results (most only view the top 10)
- 36. How do they find your site? Learn why Google’s algorithm is so important bit.ly/Zilw4S
- 37. Keywords • Approximately 15% of algorithm • Content must be in HTML text format • Images and other non-text content is virtually invisible to search engines • Learn more about the changes http://mz.cm/KYkW0I
- 38. Wrap Up • Print and digital work together. Read bit.ly/15mhRpu for more info • With increased mobile uses, opportunity to integrate catalog is huge • Mix with other marketing components • Use of readily accessed information in catalog to quickly take a reader to another source for more information by using bit.ly or QR codes
- 39. Conclusion • Califone is bullish on catalog mailing • Currently sending 10x more than in 2003 • Single largest annual budget item • To optimize today’s catalogs we must incorporate other modalities in our tool belt
- 40. Questions? Send them Using the Questions Panel
Editor's Notes
- Is it enough to put a Facebook or a Twitter logo in a book? No Land grab for digital mindshare, but the most effective marketing strategies incorporate traditional and digital elements into a cohesive package. This shouldn ’t be a debate between traditional vs digital, but shift to focus on making the two channels work together re blog http://econsultancy.com/us/blog/62546-making-digital-and-traditional-marketing-work-together
- Contact info, website, company name. Sample shown is our British distributor
- Quick question / audience poll – how many people in a show of hands have a smartphone or tablet? – leads to next slide
- Definition of mobile media user - who use mobile web, access applications, or download content
- Implications for catalogers – if placing website online, consider optimizing your website for mobile users
- Familiar with these functions? If not then insert an image of the CMO ’s guide to the social landscape. Audience poll - ask to explore ways they have used social media to promote their catalogs. If there's time, this could be fun to explore! What ’s missing, these are all online activities – integration needed with print catalog
- What are they? QR Codes are 2D Barcodes first released in 1994. Primary aim of being easily interpreted by scanner equipment in manufacturing, logistics and sales applications. How are they used? QR Codes combine several advantages over barcodes: a) they can hold a very large capacity of numbers or letters in any language 2) their printout size can be very small 3) they offer high speed reading 4) they can be read from any side (omnidirectional or 360° scan) Japan, the first country with a highly developed 3G network and high usage of the mobile internet
- Link to a blog about how QR codes are used to reach and engage http://www.califone.com/blog/2011/06/21/using-qr-codes-to-reach-and-engage/ Can be put onto almost any substrate – a coin, or even knitted onto a sweater Explain bit.ly as another way to readily drop in a URL . In a catalog, it could link to a product page on a website, a blog, a video, even a sign up to receive an electronic newsletter.
- Convert Your Catalog from Passive to Active for a more engaging experience. Traditional media highly effective way to reach a broad consumer audience. On the other hand, digital marketing can be used to create a relationship with the consumer that has depth and relevancy. Marketers should use the wider reach traditional marketing channels to generate broad awareness and drive consumers to the digital experience.
- Catalog production is a proud child and everyone want to show off their baby pics Reap added rewards by putting it online for BtoB to download and use for future reference; PDF or ebook or ISSU
- Bit.ly goes to the download center url
- Defining exactly what Google ’s algorithm measures is very much a moving target – spawned its own niche industry Some updates Google has made to their algorithm are given names, ie Panda, Penguin etc.
- bit.ly shown links to an overview of the changes over the years and what was suspected of changing
- The other point I would add is that you don't ever fully discover the "answer." Each year you revisit the mix to see how you curate your various parts. Just like catalog marketing – experiment, test, grow and execute. Database marketing is part of that mix (subtle plug for Agile)