Catalogs: Source Books or Dead Trees?

Restoration Hardware made business headlines recently by doing something that proves catalog marketing is far from dead: It mailed millions of 17-pound bundles of source books. The company's home page describes the source books as "over 3300 pages of curated and inspired design." The bundle included 4 "lifestyle books" (such as interiors) and 9 "category books" (such as lighting, bath, etc), mailed once a year.

From Tumblr "Deforestation Hardware"

Some members of the public don't see what Restoration Hardware sees, especially since the CEO has been promoting corporate sustainability, saying, "I don’t know of another catalog retailer of scale taking the steps we are to minimize our impact on the environment."

In and around Palo Alto, California, some recipients were so outraged by the sheer size and weight of the delivery that they returned the bundles to the nearest Restoration Hardware store. Other media around the country (social and conventional) have picked up the story and consumer comments.

The debate continues: Are catalogs source books or dead trees?

To engage shoppers and save trees and money, many catalog merchants are testing innovations. For example, IKEA Russia has a new app in its Instagram presence that allows smartphone users to see more merchandise photos.

Meanwhile, consumers who don't want catalogs in their mailboxes can add their names to a variety of "do not mail" lists like DMA Choice and Catalog Choice.

The New Era of Catalog Marketing

Think printed catalogs are so last century? Not so! It's not just catalog-driven companies like IKEA and L.L. Bean that stubbornly refuse to drop print--many marketers rely on the multichannel, complementary nature of printed catalogs and online shopping to involve customers and encourage browsing and buying. In fact, when L.L. Bean cut back on mailing catalogs, sales suffered.

A recent Wall Street Journal article points out that some online marketers have expanded into catalogs to take advantage of this complementary effect. Bonobos, once an online-only marketer of mens wear, tested catalogs last year. The VP-marketing explains that "we're constantly testing new channels—even ones that may be old to others."

Originally a web-only business, Bonobos branched out into retail stores with personalized sales attention but no inventory--customers try on clothing and order directly at the store. Then it added Nordstrom as a distribution partner, putting Bonobos products into dozens of the upscale retailer's units from coast to coast.

The catalog strategy enhances the multichannel effect and adds to Bonobos' results by allowing customers to choose their shopping method. New Bonobos customers spend one and a half times as much when they receive a catalog first, compared with consumers who don't receive a catalog before clicking on the website. Naturally, Bonobos is highly social, with 355,000+ Facebook followers, plus active Tumblr posts and other social media involvement. The company even has specialists known as Bonobos Ninjas to expedite customer service via Twitter.

What happens to catalogs as postage rates rise? Some are trimming size, but remaining active in catalog marketing because of the benefits of putting full-color photos and detailed product descriptions in front of customers via mail.

"Coupons and Savings in Your Neighborhood" - NOT

clipped from www.valpak.com Coupons and Savings in Your Neighborhood

Do you get Valpak in your mail box? I do, and often the envelope is filled with offers from restaurants, stores, and businesses that are nowhere near my neighborhood.

That's one of the pitfalls of segmenting by ZIP code -- it sometimes wastes the money of businesses that pay for Valpak to deliver their ads to "local" households. It also discourages consumers (like me) from tearing the envelope open to page through the offers.

The Future of Catalogs

My mailbox was full of catalogs this holiday season, including some from firms I haven't done business with in more than a decade. Is the Web killing off catalogs? Business Week looked at that issue in November and then examined the opt-out situation in December.

The Direct Marketing Association offers its Mail Preference Service, which allows consumers to specify which catalogs they prefer not to receive. But (and it's a big but) consumers have to include a credit card number to (1) verify their identity and (2) pay DMA $1 for the service. The association assures consumers that it uses "secure payment transaction processing to protect your credit card information."

So does the DMA think someone might maliciously decide to submit my name to be removed from the mailing list of a catalog I absolutely love? Or is this a way to make it more difficult for me to keep my mailbox clear of catalog clutter?

The DMA told Business Week that it will soon eliminate the $1 fee. But what about the requirement of submitting a credit card number? Sounds like a lot of unnecessary paperwork to discourage consumers from opting out. Ironically, the catalog companies are the real losers, since they spend time and money printing and mailing catalogs to too many people who just dump them in the recycle bin. Is that the future of catalogs?