In tough economic times, it makes sense to reduce expenses wherever possible. However, too often catalogers cut costs in areas that wind up affecting the company’s long-term viability. Such “slash-and-burn” cost-cutting might save money in the short term, but hurts the company in the long run.
For example, some catalogs have reduced page count (without doing the proper square-inch analysis), many have eliminated mailings to web-only buyers (without proper testing), and others have changed paper stock/grade or eliminated mailings to prospects. These reductions are well intentioned, but are not always the right decisions for the business.
When the going gets tough, the tough don’t cut circulation or stop prospecting. Rather, they make sensible cost reductions that will not affect the company’s viability.
Catalog consultant and marketing expert Stephen Lett explains what you should — and shouldn’t — do to address the dual challenges of increasing costs and lower response rates, so that your company sails smoothly through these rough economic seas.