Catalogs, direct mail continue to be effective sales channels
By: Bill LaformeOctober 16th, 2009
Although it may seem as if the growth of social networking and ecommerce websites could threaten the direct mail industry, some mailing sectors, such as catalogs, are still considered the preferred platform.
The Wall Street Journal reported that more than 17 billion catalogs – approximately 56 per person – were mailed in the U.S. last year. The newspaper cited data from forest products industry researcher RISI (Resource Information Systems Inc.) which found that catalogs represent 3 percent of the 80 million tons of paper products used annually.
This continued reliance on catalogs flies in the face of what some consider the increasing shift to digital channels.
The article suggested that catalogs continue to thrive because "glossy catalog pages still entice buyers in a way that computer images don’t," the Journal reported.
However, the two platforms can actually work together, not against each other – the newspaper noted that catalogs "drive sales at websites, making them more important than ever."
Catalogs, like brochures and postcards, have likely remained in use because they deliver a high return on investment.
The Direct Marketing Association, in a survey of its members, found that 62 percent of companies report that catalogs are their primary sales channel, substantially higher than the 20 percent seen for websites.
Paper catalogs were also found to be the largest revenue generator of all channels, representing almost half of sales in both 2007 and 2008.
Another study from the U.S. Postal Service found that consumers who received mailed catalogs spent 28 percent more on the company’s ecommerce site than those who did not receive paper catalogs, the Wall Street Journal reported.
"The more often you mail," the newspaper cited from the study, "the more sales you could see."
To take advantage of this trend, businesses are encouraged to continue investing in their paper marketing campaigns, especially in anticipation of the holiday shopping season.
These campaigns do not have to be limited to catalogs, either – other direct mail strategies such as postcards, rack cards, and even greeting cards have been found to be effective lead generation and customer acquisition tactics.
To ensure that they get the most out of these campaigns, businesses are advised to invest in high-quality graphics and to make sure that their branding is consistent across all mailings.
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