Live From ACCM: Differentiate to Stay Ahead of the Curve
Marketers need to find a way to differentiate themselves. The key, said Bart Sichel, principal, McKinsey & Co, is to find a niche, whether in a positioning or tactical area.
“If you want to sell something that’s available at Wal-Mart by direct mail, its going to be very, very difficult,” said Michael Muoio, president and CEO of Lillian Vernon Corp.
It’s difficult, but it can be done, noted Love Goel, chairman of Automotive Specialty Accessories and Parts (ASAP). One tactic is to find a way to reach the audience who considers the product to be part of their lifestyle. He cited western aficionados who might wear Wrangler jeans, or Christians who are fans of a particular Gospel musician as examples.
Sichel, Muoio and Goel spoke at a luncheon “power forum” during ACCM in Boston.
Above all, marketers need to stay true to their brand promise, and what is unique about their brand, said Muoio. For Lillian Vernon, one way they do that is to always look at whether a product can be personalized, something the cataloger has long been known for.
Think about the customer you serve and the category you are in, said Sichel, adding that it’s also important to look at who isn’t your customer and why, as well.
Sherry Chiger, editorial director of Multichannel Merchant and moderator of the forum, asked panelists for their thoughts on the recent postal rate increases. She noted that new research by her publication found that as a result of the hike, 75% of respondents plan to increase their use of e-mail and 40% will up use of search.
“Irrespective of postal rates,” a constant struggle for all catalogers is finding new, valuable prospects, said Goel.
Muoio agreed, noting that everyone needs to redouble their efforts on all fronts, looking at things like formats, production costs, list hygiene and merchandising to maximize their efforts.
“You need to look at everything and assume nothing,” he said.
For their part, the rate hike isn’t making Vernon retreat from mailboxes. Indeed, the cataloger plans a dramatic circulation increase next year.
Historically, if you look at postal rate increase, you’ll se circulations go up and down and them up again, said Sichel. “People need to sort through how to make the volumes work. The key is to get ahead of the curve.”
