Setting the Standard

THIS IS THE sixth year we’ve compiled information on catalog customer service. In this issue we’ll consider the more than 200 catalogs we received in March, an average of 7.5 books per delivery day.

As in previous years, we’ve divided the information into five main groups: overall, apparel, gifts, home and hobbies/sports/electronics. Not surprisingly, the biggest increase came in Web address promotion (up 71% overall and a whopping 171% in the home category).

The next highest percentage hike was in the use of editorial, up 53% overall, with apparel jumping 190%. (We define editorial as beyond just having a letter in the catalog; 14% more catalogs are also being sent out with a letter.)

Next was the listing of international ordering information (an increase of 39% overall) and the offering of a company’s own credit card (up 27% overall, but down 44% in the home sector).

Brand Building Is Big As the increase in editorial, letters and affinity credit cards indicates, there is some heavy brand building going on. This is further confirmed by an expansion of loyalty clubs-up 11% overall, with the home sector’s 138% increase leading the way-yet, interestingly, there was a 35% decline in such clubs in the hobbies/sports/electronics category. This is understandable for electronics, as those purchases are often based on price, not loyalty. But it’s a surprise for niche sports and hobby marketers.

Social tie-ins (where customers can donate a portion of their purchases to nonprofits) can also be construed as a method of fostering loyalty. They were up 20% overall, but were off in apparel and gifts, two extremely competitive areas that might benefit from such a distinction.

It was encouraging to see that companies that don’t mention their customer service number dropped 30%. Apparel is still a big offender (64% more than last year don’t list a separate number) but gifts, at a 72% decrease, leads the way in doing things right. The assumption customers know an ordering number is also staffed with people ready and willing to answer service questions is just that, an assumption. It doesn’t help you to use your service as a marketing tool.

Our associate Rose Guieb, who does the lion’s share of the compilation, had this telling observation that sums up how most consumers probably feel: “You can quickly tell how service-oriented a company is by its order form.”

A common claim from focus group participants is that they turn to the order form for service information. While some marketers also add key bits of service data to their catalog, the order form remains the “bulletin board” of the services-and attitudes-a company wants to project to its audience.

Fewer Promos Last year’s heavy promotional bent died down somewhat, with bonus gifts declining 13% overall. But here again you see why we divide the catalogs into categories: home actually increased 217% while apparel decreased 100%. The use of ink jetting for special offers is down 17% overall; in contrast, gift catalogers showed they felt they needed more promotion, as their use of ink-jetted messages went up 25%. Overall, 17% more than last year had a discount or sale approach; home had the highest increase (up 88%). Hobbies, sports and electronics followed at 70% and gifts at 48%.

The Standouts Of course, some catalogs stood out from the ever-growing pack in both service and marketing ideas.

Here’s why.

* Bloomingdale’s tries to make the Mail Preference Service message a little more understandable with its explicit language: “The Direct Marketing Association will stop the rental of your name by all companies using their service.”

* Allen Bros. encourages multiple shipments of its steaks by promoting “$10 off every $100 you spend per address!” Just think of all those valuable gift-recipient names this could generate.

* DHC Skin Care actually says “thank you” on its order form-not on the order entry part, but as the closing paragraph of the services section.

* Dakin not only offers samples, but mentions this taste-testing, sales-building idea on the order-form envelope. Hence, customers are tempted to add another small item to their purchase.

* Design Toscano takes the time and space to explain the distinctions in materials in its sculpture reproductions, from different types of resins to plaster to marble…and it actually squeezes a photo of a promotional product (you get free shipping for this item when you order it with another one) on the front of the order envelope.

* Harmony showcases a business that uses its environmentally savvy products, effectively illustrating use as well as presenting an implied endorsement and showing a real example of how environmentally sound choices can “make a difference in the future.”

* Movies & Memories uses a traditional wrap to scream “Last chance!” but wisely balances with a great sales pitch: “Over 250 titles $14.99 or less!”

* Museum Shop, which sells high-ticket art reproductions, presents its catalog in an envelope and adds five loose, order-enhancing elements: a letter, a mini-brochure of nothing but customer endorsements, a sheet of bonus gift options, the order form and its envelope.

* Overton’s not only has an online sweepstakes, but offers those who sign up weekly e-mail specials. Further, an icon shown throughout the catalog directs readers to the Web site for more detailed information on products and services.

* Stress Less drives print catalog users to its Web site through a “click to win” $2,500 limited-time shopping spree inducement.

* Support Plus’ tidy order form jams in facts of why shipping and handling costs what it does, why you should buy from the company and all the other key elements one needs when placing an order.

* The Pyramid Collection has a clearance section like many other catalogs, but the teaser for this one uses the magic words “first quality.”

* Vermont Country Store posts a nine-item “Customer Bill of Rights” informing prospects that-among other things-they are “the top priority of the moment” and can expect “salespeople to know about merchandise.”

* Williams-Sonoma shows a real understanding of keeping customers satisfied with its “Culinary Parts Unlimited,” a replacement service of “genuine” parts from over 40 manufacturers.

Remember, this is a sampling designed to provide a pulse of what’s happening from year to year. Because the numbers change annually, it’s not statistically accurate. But we hope it gives a feel for what kinds of services those on the same playing field are offering.