THIS IS THE fifth year we’ve done an informal accounting of service standards in the consumer catalog industry. In the past, we generally reviewed about two weeks’ worth of catalogs; this year (thanks to a lot of help from Muldoon & Baer’s Rose Guieb) we increased it to the entire month of May-more than 100 additional catalogs.
Due to the increase we have an even more diverse group, including catalogs selling everything from crafts to spices, stickers, nostalgia and yes, basics such as apparel. As in last year’s survey, we’ve attempted to divide the information by category, as different industries sometimes have different service requirements.
The overall finding is rather depressing and evidence of shortsighted strategy. Service appears to be falling off and promotion (some of it being marketed as service) is on the rise.
Granted, servicing customers isn’t getting any less expensive, no doubt causing some perks to disappear out of necessity. But the general feeling from looking at over 100 catalogs is that catalogers may no longer be the service standard bearers.
Some examples: a 100% drop in catalogs offering only expedited delivery (with a 7% decline in those offering this as an option at all), a 25% drop in postage-paid envelopes, and a 7% drop in the fax option (5% less offered toll-free faxes).
Interestingly, the use of unconditional guarantees has been basically the same over the last year, holding at 60% of those surveyed. But it has slid from 72% in 1994.
>From 1997, 109% growth was found in the number of catalogers that didn’t mention a way to reach customer service. This is probably because many catalogs use the same number for ordering as for service, but that’s not made clear.
Gift ordering seems to be discouraged. Overall, 17% fewer offer gift wrap. Within this group, there has been a 55% decrease in free gift wrap and a 43% increase in those charging $5 or more.
As service standards experience a laid-back phase, promotion continues to heat up. On average, 55% more catalogers now mention online service. This isn’t a bad idea. But most just cite it as an afterthought, offering no real reason why the reader might want to visit the site.Bonus gifts have gone thr ough the roof, jumping 167%. T-shirts, ties and electronics are just some of the giveaways. Besides bonuses, discounts and sale approaches-such as free shipping and handling and extended payments-are on the upswing, rising 36% overall, with the highest increases in home and most decreases in hobbies, sports and electronics.
While it may seem loyalty clubs are everywhere, they’re actually down 18% among the catalogs reviewed. Perhaps the reason is one voiced anonymously: “We could not prove that it provided incremental business.”
But some loyalty-building techniques are on the rise, such as offering credit cards (up 16%).
Some of the problems catalogers have experienced internationally are showing up in the books themselves. Print mentions of international ordering guidelines are down 28% overall. This is also influenced by the fact that the more experienced international DMers are preparing catalogs specifically for those markets and not making do with one for all.
Some especially interesting observations:
1. Heavenly Treasures devotes half of the front of its order form to an old, but lately under-used technique, frequently asked questions. We all love to read Q&As and this turns “fine print” into a service statement.
2. Miles Kimball’s sale message one-upped Taylor Gifts’. Kimball’s copy read, “Up to 75% Savings! Preferred Customer Sale,” whereas Taylor had a mere “Savings Up to 50% Throughout.” We like Kimball’s slant, but these two examples remind us that it’s good to test this type of offer.
3. Levenger knows how to promote its Internet site by explaining why you might want to go to it. (“We carry more products than we can fit in this printed catalog.”)
4. Avon also gets you online by offering a free gift with purchase as well as tips and ideas. And Avon asks customers to join its e-mail list to “Learn about the newest products, upcoming promotions, contests and fantastic sales.”
5. Warner Bros. wants to make sure it gets you no matter where you are. They list every single store-including those in Saudi Arabia and Guam.
6. Omaha Steaks shows (I hope) that it has a real handle on the lifetime value of a customer, as its bonus gift is an expensive-looking sound system. Plus Omaha still is one of the best at showing the value of its packing system (in line drawings on the order form).
7. Sporty’s uses a traditional Christmas technique for what is likely an important gift time for its products, Father’s Day. The cover and inside front cover carries messages that explain how gifts ordered by June 19 will arrive in time. (But next year they might want to include when Father’s Day is-many folks forget the exact date.)
8. Home Trends handles overs and unders smartly. “When you send us a check in the wrong amount,” the order form says, “if the amount due you is more than $2, you will receive a check in the mail. If the amount due is less than $2, these moneys are donated to the American Cancer Society.” Almost makes you want to purposely overwrite a check.
9. This is how Sharper Image promotes its Royal Service (for some items only, but at the price points in this catalog it’s an idea that was meant to happen): “When your item is ready, we will call you to arrange a convenient delivery day and time…placed in the room you desire, unpacked, inspected and assembled for you…under your supervision.” Very nice.
10. Frontgate isn’t as nice. It offers the same service as Sharper Image, and charges $19.95 for it on some items. However, it wasn’t clear on which items it was covered and on which it was extra.
11. Pottery Barn (and all the Williams-Sonoma catalogs) shows how to display information about the Mail Preference Service. To eliminate customer confusion every option is clearly laid out in a space-economical manner. Congratulations!
12. Whatever Works uses brief, but very informative, editorial throughout to promote with authority and reinforce its “control pests humanely” position.
13. Clifford & Willis’ personal shopping service is open “around the clock” seven days a week.
14. Spirit of the West gets down to real numbers by sharing such factoids as: “Your call will be answered…in four seconds,” and “Almost 90% of the items…come from the United States and Canada…[meaning that] the item will be in stock and available.”
15. Studio Collection makes its point deftly: “On full-price merchandise, our guarantee is the only thing we won’t take back.”
16. A/K/A Eddie Bauer has the best-looking, most informative sizing information, including shopping tips for those between sizes.
17. National Wholesale Company dispels customer concerns by listing business references (First Union National Bank, chamber of commerce) in its hometown.
18. Brooks Brothers offers customers free basic alterations.
It is worrisome that short-term cost cutting may be affecting long-term customer loyalty by giving the impression catalogers aren’t as service-oriented as they might be. But there are still plenty out there doing great jobs.
(Note: This is not meant to be a scientific study. We are aware that by increasing the number of catalogs reviewed (164 vs. 63) and extending the time period (from around two weeks to one full month’s worth of books) we may have distorted the stats somewhat. But it will give you an idea of how a large group of catalogers handled service this past spring.)
Network
