Edging Back to Business as Usual

Posted on by Chief Marketer Staff

Monday, as the stock market re-opened, U.S. stocks plummeted. But it was a start.

So it goes for direct marketers. Call center volume, which came to an almost complete halt last Tuesday, is slowly returning to normal.

When they heard about the terrorist attacks, “a lot of our members stopped outbound calling immediately,” said Kevin Brosnahan, spokesperson for the American Teleservices Association in Washington D.C. “Inbound calls dropped off at least 30% to 50%.”

But, by Monday, Lands’ End, Lillian Vernon and the Spiegel Group said, call volume had returned nearly to normal.

“Monday, phone orders were down 10% versus last Tuesday when they were down 58%,” said David Hochberg spokesman for Lillian Vernon, Rye NY.

“Each day, we’re seeing less erosion of business, less distraction by our customers,” Hochberg added.

But things are decidedly not business as usual.

Catalogers are suffering declines of 50% or more in response, according to an economic impact report released by the DMA on Monday.

“We have wide-ranging reports that business is still off,” Wientzen, told DIRECT Newsline.

The Spiegel Group, for example, has put its marketing mailings on hold because executives don’t want to do anything that could be considered offensive. A Spiegel specialty book scheduled to go out was postponed last week and is still awaiting a mail date this week. E-mail promotions for all three catalogs–Spiegel, Newport News and Eddie Bauer–have also been halted for the time being.

“The company is evaluating how customers are reacting to the situation and gauging when it seems appropriate to resume based on world events,” said Allison Scherer, spokesperson for the Spiegel Group, Downers Grove, IL.

Many mailers are not sending catalogs to Lower Manhattan and parts of Washington D.C.

Catalog orders are going out as scheduled–but more slowly. For the past several day’s orders had to be shipped ground instead of air. Lands’ End placed a simple explanation on its Web site: “Due to the devastating events of September 11 and the resulting disruption of domestic air transport schedules, we regret that some deliveries may be delayed.”

The time of year may have helped some direct marketers. It’s still early enough in the holiday season that some, like Lillian Vernon, have time to regroup. “A lot of the business is deferred business,” Hochberg said. “People still want and need those items they planned to order last week, they just deferred ordering them.”

Technological problems associated with the World Trade Center crashes continue to plague some companies. Greenwich, CT-based list company Direct Media, which uses a lower Manhattan teleservices company, found its long-distance service cut off after the disaster last week.

The employees of Global Crossing, which provides long-distance calling, Internet service, Web hosting and network connections among Direct Media offices, couldn’t return to their office. As the company migrated their calls to a Newark, NJ, location, it ran the lower Manhattan operations from a generator. When the generator stopped, they couldn’t get gas for it.

Meanwhile, Direct Media made long-distance calls through AT&T, and never lost faith. “Once I was able to make an outgoing call and get ahold of them, they were right on top of it,” said George Degenhardt, data communications manager.

By Monday afternoon, service was 95% restored and expected to be 100% by the end of the day. Direct Media will remain a Global Crossing customer.

Following the disaster, anyone with flag-related merchandise d for sale experienced a boon. Lillian Vernon discovered this when its leftover Fourth of July merchandise flew off the shelves. The cataloger offered the products in phone specials and in its outlet stores by the end of last week. “We’re virtually sold out now,” Hochberg said on Monday.

Like scores of direct marketers, Lillian Vernon used its Web site to help the rescuers’ cause. On Tuesday, Lillian Vernon will put two items with a flag theme on the Web site. Profits from those two items will go to charities for police and firefighter. Lands’ End and Spiegel have charitable resources and links on their sites also.

How long before business as usual? “If there’s no military action launched this week, we’re going to see it gradually coming back,” Wientzen said. “My sense is it takes about two weeks. I think there’s still time to salvage the holiday season.

Edging Back to Business as Usual

Posted on by Chief Marketer Staff

Monday, as the stock market re-opened, U.S. stocks plummeted. But it was a start.

So it goes for direct marketers. Call center volume, which came to an almost complete halt last Tuesday, is slowly returning to normal.

When they heard about the terrorist attacks, “a lot of our members stopped outbound calling immediately,” said Kevin Brosnahan, spokesperson for the American Teleservices Association in Washington D.C. “Inbound calls dropped off at least 30% to 50%.”

But, by Monday, Lands’ End, Lillian Vernon and the Spiegel Group said, call volume had returned nearly to normal.

“Monday, phone orders were down 10% versus last Tuesday when they were down 58%,” said David Hochberg spokesman for Lillian Vernon, Rye NY.

“Each day, we’re seeing less erosion of business, less distraction by our customers,” Hochberg added.

But things are decidedly not business as usual.

Catalogers are suffering declines of 50% or more in response, according to an economic impact report released by the DMA on Monday.

“We have wide-ranging reports that business is still off,” Wientzen, told DIRECT Newsline.

The Spiegel Group, for example, has put its marketing mailings on hold because executives don’t want to do anything that could be considered offensive. A Spiegel specialty book scheduled to go out was postponed last week and is still awaiting a mail date this week. E-mail promotions for all three catalogs–Spiegel, Newport News and Eddie Bauer–have also been halted for the time being.

“The company is evaluating how customers are reacting to the situation and gauging when it seems appropriate to resume based on world events,” said Allison Scherer, spokesperson for the Spiegel Group, Downers Grove, IL.

Many mailers are not sending catalogs to Lower Manhattan and parts of Washington D.C.

Catalog orders are going out as scheduled–but more slowly. For the past several day’s orders had to be shipped ground instead of air. Lands’ End placed a simple explanation on its Web site: “Due to the devastating events of September 11 and the resulting disruption of domestic air transport schedules, we regret that some deliveries may be delayed.”

The time of year may have helped some direct marketers. It’s still early enough in the holiday season that some, like Lillian Vernon, have time to regroup. “A lot of the business is deferred business,” Hochberg said. “People still want and need those items they planned to order last week, they just deferred ordering them.”

Technological problems associated with the World Trade Center crashes continue to plague some companies. Greenwich, CT-based list company Direct Media, which uses a lower Manhattan teleservices company, found its long-distance service cut off after the disaster last week.

The employees of Global Crossing, which provides long-distance calling, Internet service, Web hosting and network connections among Direct Media offices, couldn’t return to their office. As the company migrated their calls to a Newark, NJ, location, it ran the lower Manhattan operations from a generator. When the generator stopped, they couldn’t get gas for it.

Meanwhile, Direct Media made long-distance calls through AT&T, and never lost faith. “Once I was able to make an outgoing call and get ahold of them, they were right on top of it,” said George Degenhardt, data communications manager.

By Monday afternoon, service was 95% restored and expected to be 100% by the end of the day. Direct Media will remain a Global Crossing customer.

Following the disaster, anyone with flag-related merchandise d for sale experienced a boon. Lillian Vernon discovered this when its leftover Fourth of July merchandise flew off the shelves. The cataloger offered the products in phone specials and in its outlet stores by the end of last week. “We’re virtually sold out now,” Hochberg said on Monday.

Like scores of direct marketers, Lillian Vernon used its Web site to help the rescuers’ cause. On Tuesday, Lillian Vernon will put two items with a flag theme on the Web site. Profits from those two items will go to charities for police and firefighter. Lands’ End and Spiegel have charitable resources and links on their sites also.

How long before business as usual? “If there’s no military action launched this week, we’re going to see it gradually coming back,” Wientzen said. “My sense is it takes about two weeks. I think there’s still time to salvage the holiday season.

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