no mail decisions on a segment-by-segment basis both catalog and web only buyers. Evaluate the results after match-back and then make your mail vs. Then, segment your web only buyers by R-F-M just like you segment and mail your catalog buyers. Separate your web only buyers from your catalog buyers.
#MAIL TOWEB DRIVER#
We know the catalog is the biggest single driver of traffic to the web period! However, it would be a risk not to mail catalogs to these buyers. Some of these sales have been driven through e-mail campaigns (catalog mailings being the source of most of these e-mail addresses). The results after the match-back are much different. The conclusion might be to not mail these customers. The RPC before match-back is extremely low. I have put together the following chart which clearly documents the RPC (Revenue per Catalog) for the web only buyers before and after the match-back. Although not a perfect system, a match-back will keep you on track and give you the level of confidence in the results needed to make sound judgments. Without truly knowing the level of performance of all segments mailed, you could be led to some false conclusions that influence your marketing strategy. Another 10% to 20% of these results should be allocated to outside rented lists (this varies based on how much prospecting a company is doing). The match-back tells us that 50% to 75% of the Internet results should be allocated to the housefile. This will tell you where the business is coming from and which key codes should be given credit for the sale, even web orders. Why is the match-back so important to understanding the web and catalog buyer results? This is the process where your order file is “matched-back” against your recent mail tapes in order to give credit to the proper source code. The additional mailing expense was more than justified. The net contribution for the group mailed seven times was approximately 55% higher than the group that was only mailed once. To prove my point, I did the split and created a hold out panel and found that it absolutely paid to mail the Internet buyers a catalog. I created two panels of roughly 25,000 each. One panel was mailed seven times the other only one time. But, is this really the case? Before you come to any conclusion regarding Internet buyers and whether they should or should not be mailed, be sure to have your service bureau do a match-back first. Therefore, it is logical to assume these buyers should not be mailed a catalog or at least not mailed as frequently as catalog buyers who fall within the same R-F-M housefile segments.
#MAIL TOWEB CODE#
When you look at your source code report it may appear that the web only buyers do not perform well. Yet, catalogers are not always clear on what’s really driving the business. Catalogers want to mail less and use the Internet more. I feel there is a tendency within catalog companies to over allocate and to give a disproportional amount of credit to the web in order to reinforce the “no mail” conclusion. It is easy to jump to the conclusion not to mail web buyers as a way to save money by circulating fewer catalogs.
Or, not as much as catalog buyers regardless of their R-F-M.
There is a tendency to think web buyers don’t need to be mailed at all. Best Mailing Strategy to Web Only Buyers by Stephen Lett
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