A New Idea
IdeaMall shifts to phones and Web to build for future
To help stem a spate of recent losses, IdeaMall Inc. has cut catalog circulation and retailing and changed its focus to online marketing, which encompasses a good deal of inbound and outbound telemarketing.
Outbound telesales reported by IdeaMall increased about 30% during the third quarter amidst its ongoing transition from consumer marketing to business-to-business marketing. The company reported a net third quarter loss of $700,000 on revenues of $188 million through Sept. 30, the most recent figures available.
The firm publishes PC Mall, Mac Mall and related electronics catalogs. By switching its target market to small- and medium-size business customers, IdeaMall expects to achieve a greater lifetime customer value based on projected lower long-term customer acquisition and retention expenses.
“It’s more efficient to deal with business customers,” says IdeaMall president Scott W. Klein. “The cost of dealing with consumers on an ongoing basis is higher because consumers tend to be very fickle.”
IdeaMall’s new customer relationship management strategy for fostering loyalty intertwines the use of telemarketing with customized Web sites functioning as online catalogs. Individualized “customer access pages” are segmented and targeted by price and product categories.
By clicking on the Web page, authorized employees of corporate customers can place simple orders online, like reordering printer cartridges. Inbound telephone reps are available to answer questions and process more complicated orders, such as buying computer hardware and networks.
