Any seasoned direct marketer the importance of understanding the numbers side of the business. You have to know both the left-brain (analytic) and right-brain (creative) rules for maximum success. My philosophy is “know the rules before you break them.” People often ask me for the most important direct marketing metrics. As we have evolved to […]
Multichannel success is all about breaking down barriers between channels and building cooperation. Every company that strives for multichannel success is trying to change from being company-centric or channel-centric to being customer-centric. In a channel-centric company, one channel typically dominates the others. In this business model, the company is more important than the customer; everything […]
Multichannel success depends in large part on having a solid strategy for keeping in contact with your house list. Most marketers know this, but knowing how to develop and execute a plan for contacting the customer file is another story. The good news is that you can simplify the process by breaking it down into […]
This month we look at another analytical technique or process that direct sellers need to know, understand, and apply to their daily operations: tracking response curves. Successful and profitable catalogers will likely recognize the applications we are about to discuss; newer and smaller catalogers and Internet marketers may find that the information can provide them […]
In June we looked at the profit and loss statement, discussing how a catalog P&L or income statement is different from that of a manufacturer and reviewing what is meant by cancellations, returns, exchanges, cost of goods, and gross margin. Now we’ll look at what goes into the fulfillment, advertising, and general and administrative aspects […]
If you’re familiar with the profit and loss (P & L) statement traditionally used by bankers and accountants, you may be surprised to see the level of detail in P & L used by direct marketers and catalogers. But it’s prudent to get a complete picture of all the costs that go into a marketing […]
Last month we discussed the cost of getting a customer, a key measurement for the “front end,” or the prospecting side of the business. Now, we look at a corresponding analytical marketing variable: lifetime value, a “back end” marketing metric, which is applied to the house list to determine the value of a customer or […]
