LIKE MANY DIRECT MARKETING COMPANIES, Lillian Vernon Corp. felt an economic impact from the attacks on America.
The hijackings and subsequent military mobilization had a very real human impact as well: There are 27 active reservists on staff at the cataloger’s national distribution center in Virginia Beach, VA. Three already have been called to duty.
From a financial standpoint, the tragic attacks could not have come at a worse time. Even before Sept. 11 the company had reduced second quarter catalog circulation by 19%, shifting its August mailing to later in the month, anticipating a boost to its third quarter revenue.
In doing so it trimmed more than $3.5 million from its product and delivery costs during second quarter 2001 compared with last year’s second quarter. And revenue for the quarter fell from $45.8 million to just under $39 million.
But Vernon’s third quarter did not get off to a good start. On the day of the attacks, the company’s call center volume was off by 58% of projected levels and Web activity was half what was anticipated.
The Rye, NY-based apparel and gift marketer’s sales are recovering. After the initial weeks, both call center and Internet sales are on track. Web site sales were aided by a promotion in which Vernon donated profits from the sale of flag bunting to the police and firefighters who aided in the post-attack efforts.
The inbound telemarketing channel has proved especially valuable. The call center has seen significant success in upselling
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