Catalogers Say Books are Still Primary Sales Drivers: DMA

While traditional catalogers are no longer the e-commerce naysayers they were in the late nineties, print is still king, according to the Direct Marketing Association’s Multichannel Marketing in the Catalog Industry report.

However, the report, which was released yesterday, also contains some significant milestones indicating the traditional catalog the industry has truly embraced multichannel marketing. For example, more than 80% of respondents said they have consistent pricing, inventory and fulfillment standards across all sales channels, according to the DMA.

The companies reported that Web sales in 2005 were 39% of total direct sales, compared to 38% in 2004, according to the DMA. Also, the respondents said they believe 28% of their Internet sales were incremental, or would not have been made without their Web site.

Though catalogers’ Internet sales barely jumped as a percentage of their overall direct sales from 2004 to 2005, previous years saw significant increases. Survey respondents reported that in 2002 their Internet sales were 19% of their direct sales, and reported in 2003 they were 29% of their overall direct sales, according to the DMA.

This was also the first year that 100% of respondents to the survey conducted for the DMA by co-op database concern Abacus said they use their Web site as a sales channel.

However, just 11% of respondents said they consider their Web sites to be their primary order driver. Seventy four percent said they consider their catalogs to be their primary sales vehicle, according to the DMA.

But respondents are clearly embracing interactive marketing at unprecedented levels.

For example, for the first time in the survey’s 14 years of existence, e-mail promotions have displaced discounts and special sales as the most used tactic by respondents. Eighty none percent said they use e-mail promotions compared to 57% who said they use discounts and special sales, according to the report.

Also surpassing discounts this year as a top sales tactic used by catalogers were sales sections on Web sites, with 66% of respondents reporting that they use them. Sixty three percent said they use free shipping and handling as a sales driver, according to the report.

RSS feeds, blogs and podcasts also appeared for the first time this year as a sales tactic use by catalogers, with 9%, 9% and 3% reporting they use them, respectively.

Meanwhile, of the respondents who thought they knew, 78% said they believe they get a higher return on investment because they take a multichannel approach.