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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


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



Your catalogue is currently driving
more business than you think.



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…”



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 Bean's online sales surpassed catalog
sales, their data proves that many customers look through
the catalog before ordering online.



Use email to support
direct mail

All the data suggests
there is a lift in response
rates



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.



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.



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.



…Facebook link to catalog request.



Catalog mailers have a stronger voice in
DC than they ever have.



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.



There is no more mailbox glut



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



The upside of the Postal Accountability
and Enhancement Act of 2006 is that
future increases are controlled by the
inflation/CPI rates.



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%.



PPC inflation. It’s more than you think.



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



Paul Vogel knows that the future of the
USPS needs more catalogue mailers &
mailings.



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.



Your Customer’s Mailbox does not have
a Spam Filter



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 subscriber's inbox can be
opened, clicked and converted to sales. Each ISP has their
own criteria for inbox placement.


Done right, integrating your catalogue &
your website will improve your bottom
line.



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


Integrate your Catalog and your website…

Brand standards need to be the same



Drive customers from the
selling space of your
catalog to the less costlier
space on the web



Leverage your voice & credibility



Videos



Expanded product assortments



Leverage emotion & humor



Long format story telling



How to make connect…

…Leverage your SQI hot spots
Cover
Back Cover
Page 2-3, IBC
Footers



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



Limited inventory



Use footer space for more than phone number



Visually show site & site images on the page



Promote more engagement/involvment



All of the above


Hathaway & Lane Direct – Clients & Capabilities

Clients & Capabilities

Hathaway & Lane Direct possesses a unique set of multi-channel marketing,
strategy, analytical and research skills to build highly successful targeted
marketing 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 creatively

Combining marketing discipline and creativity, we innovate then implement
marketing strategies & tactics that consistently perform according to our forecasts
and 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 driven


Clients & Capabilities – Gardening Marketers

Capabilities
• Square Inch Analysis
• Marketing Research & Analysis
• Multi-Titled Branding
• Circulation/Contact Planning
• Sales/Inventory Forecasting& Analysis
• Pricing & Gross Margin Planning
• Business Opportunity Assessment


Clients & Capabilities – Food & Gift Marketers

Capabilities
• Customer Segmentation
• Business/Strategic Planning
• Pay-per-Click Marketing
• Email Marketing
• Product Sales & Inventory Forecasting
• Contact Management/Segmentation


Clients & Capabilities – Travel & Hospitality

Capabilities
• Contact Management/Segmentation
• Best Customer Model Development
• Acquisition Due Diligence
• RFP Development & Management
• Variable Data Printing
• Public Relations


Clients & Capabilities

Capabilities
• Contact Planning
• Database Analysis
• Paper/Print Buying
• CRM Systems
• Merchandise
Planning/Pricing
• BTB or BTC support
• Variable Data Printing


Marketing Solutions

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

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