There are almost 300,000 industrial distributors in the U.S. generating almost $2.3 trillion in sales. That is a competitive marketplace - so just how do you succeed in differentiating your business from your competitors'?
- Customers want to consolidate to cut costs.
- There is a lot of information in your customers' hands trying to influence their buying decisions.
- Price competition puts pressure on margins and manufacturers want you to buy more in order to get volume discounts.
- Technology is driving cost out of each customer interaction while providing a thread of data on every transaction.
The answer could be a well thought out catalog marketing program. Statistics show that a company catalog is the most effective method used to attract new customers (DIY Retailing). Here are 10 ideas to start you thinking about how to connect with your customers in order to drive more business out of your catalog programs.
- Develop a plan.
- Set clear sales and marketing objectives with your sales and marketing teams on the results to be achieved by the catalog.
- Test and measure the results (ROI).
- Display prices and other valuable information in your catalog and make it a reference guide for your customers.
Customers today are too busy to pick up the phone to find out how much an item costs. Make it easy to for them to buy from you and they will. 98.7% of Purchasing Agents surveyed say that copy that includes the price of advertised product influences their selection of products. (CARR Report #115.1).
Statistics show that 76% of customers making buying decisions require additional product information (Cahners Research). 61% of buyers prefer a print resource to gather that information. (Thomas Directory). - Determine the right number of catalogs to print
Sending the right number of catalogs to the right customers requires proper database and circulation management skills. To support a catalog program, a distributor should have between 2,000 and 10,000 names. The mix of names should be have a ratio of 3:1 active to inactive customers. ("Down to Earth Advice on Getting your Catalog Off the Ground" by Lynn Edwards May/June 1994). - Have a catalog distribution and follow-up strategy.
Mailing to the right prospects has a bigger impact on response rates and sales than anything else you do (Catalog Success). Collect the names of all customers who receive your catalog. A telemarketing campaign can be used to systematically phone each person who has your catalog to ensure they understand it and use it. Make sure you are asking for their order. - Clearly establish an identity or niche for your catalog and your company and make your easy to use to maximize your selling proposition.
Think about who your customer is, what they need, what the company has to offer and what the company's long term goals are. How does the catalog fit into the plan? Is the catalog meant to attract new customers? Reactivate former customers?
Use color to enhance product photography and to organize category headers. Not only does color increase willingness to read by up to 80% (The Persuasive Properties of Color, Ronald E. Green), color advertising outsells black and white by 88% (Loyola University, School of Business). Color also enhances learning and improves retention by more than 75% (Loyola University, School of Business).
- Use the catalog to open doors for the sales team and reduce your sales cycle.
A catalog introduces the company to the prospect and makes them familiar with the full scope of products and services you are offering. A catalog makes an excellent calling card and will generate follow-up opportunities when prospecting. Having a catalog you can use to educate prospects, overcome their objections, influence their buying decision, and persuade them through to purchase will reduce your overall sales cycle. - Intimidate your competition.
Raise the standard on catalogs in your industry. Your competition will be forced to respond to remain competitive or lose customers. Keep your brand consistent across catalog, web site and other communication channels. A strong brand is a tool that is unbeatable for building sales and loyalty (Catalog Age). - Get to the decision makers and know their buying habits and preferences.
Too many catalogs get put into the market without adequate follow-up. The key to driving business from your catalog program is getting your information to the key decision makers and influencers, knowing what their preferences and habits are and then selling them on the benefits of placing their business with your company. To do this you need to know them. Keep track of customer information and buying habits with Customer Relationship Management (CRM) tools that collect data on each of your customers and provide reporting on each interaction you have with them. A brief overview of CRM is included in this newsletter and these tools will be discussed in future issues of The Bottom Line. - Partner with your manufacturers and suppliers.
Featuring their products in your catalog is a commitment to support their business. They will pay for that loyalty through cooperative advertising allowances. Make sure to maximize their investment in your catalog by keeping them informed; including their ideas on product selection and educating them on the value they will receive. - Integrate your catalog with other communication tools such as the web to enhance the advertising message.
Cahners Research reports that having a catalog on-line is the number one reason respondents return to a site. Catalogs are seen as the most effective way to drive web site traffic, with the majority (69%) of new web customers acquired through catalog mailings (DMA State of the Catalog Industry Report, 2001).
For more information or to share your successful ideas contact Gerry Cronin at gerry.cronin@webcomlink.com.
