Live From Chicago: DMA Reports “Net” Gain

The Internet generated 13% of all catalog sales in 2000, compared to 9% in 1999, according to a DMA study released yesterday at its annual fall conference.

The study also revealed a shift in how catalog companies define themselves: Ninety-five percent described themselves as multi-channel retailers. Of those, 45% defined their companies as “catalog/Internet/retail”, and 50% as “catalog/ Internet”. Only 2% described themselves as “Internet only” and 3% as “catalog only”.

As for sales, 13% were attributed to the Web, 68% were driven by the print catalog and 8% were generated by retail or outlet stores.

The top measurements used to evaluate the results of Internet marketing are: sales generated from the Web site (90%), an increase in total sales as a result of the Web (67%), number of hits on the home page (58%), the return on investment (50%) and the number of leads generated by the Web (43%).

Some 72% of respondents reported greater visibility as the top benefit received. Other benefits include: increased revenues (70%), the ability to reach new customers (70%), cost savings (69%), time savings (55%), better customer service (52%) and new business opportunities (49%).

The DMA State of the Catalog/Interactive Industry Report is conducted annually by the DMA in cooperation with W.A. Dean & Associates. The report details the results of survey of nearly 100 catalog executives covering performance data from 2000.