March 13, 2010 A.T. Clayton News

Demand News

The Role of Catalogs in Multichannel Retailing
According to the Direct Marketing Association, the ROI from catalogs brings in $7.34 for each dollar spent, lower than e-mail or Internet methods. Despite this, the rich photographs, and tangible presence in the home encourage purchase, higher brand awareness and mindshare. Catalogs provide better-qualified leads to retailers’ other channels, including the web site. Some retailers are focusing on their faster growing e-commerce channel, while others, who are web-only or store-based, are adding or expanding their catalogs, to create the right balance. (eMarketer)

Hearst Jumps into Apps, called LMK “Let Me Know”
Hearst is investing in a handful of employees to create thousands of apps for the Apple iPhone that pull together news and photos on a specific topic, i.e. sports teams, players, celebrities, musicians, hobbies, or interests. The apps sell for $0.99 cents+. Hearst’s business group is known as LMK or “Let Me Know”. iPhone and iPod Touch users have purchased >$2.7 billion of apps, downloading >3 billion apps from the >150,00 apps currently available. Approximately 70 LMK apps are available in the app store, having sold a few hundred without any marketing or promotion. It will take innovative marketing and unique information to build the LMK brand. Hearst is considering different pricing models and plans to add advertising in the future. (WSJ)

Postal News

USPS “Intelligent Mail Service”: Tips For Success
To date, the USPS "Intelligent Mail Service" processed >7 billion pieces of mail worth $2 billion revenue, with 300 business mailers participating. Several advantages of the program are the free “Address Correction Service” (ACS), “Start-the-Clock” information and postage discounts offered for “Full Service” participation. USPS tips for success:
1. Determine ROI of Full Service price discounts and free ACS
2. Work closely with equipment/software vendors to determine capabilities, i.e. ability to print IM Barcode
3. Ensure that software is able to submit postage statements electronically via PostalOne! System
4. Determine how barcodes will be created (your Mailer ID or the mail owner) and how to ensure uniqueness of each, for tracking

Economic News

US Retail Sales in Feb Rise, Despite Snowstorms and Toyota
The Commerce Department reported a surprising increase of 0.3% in retail sales in Feb, despite snowstorms that crippled much of the country and numerous recalls by Toyota, which hampered auto sales. When car and gas sales were excluded, sales rose even more, up 0.9%. Spending was up most in electronics, +3.7%, with general merchandise up 1%, sports/books/music up 1.2%, clothing up 0.6% and building materials up 0.5%. Last week, most retailers posted their strongest results since late 2007. (WSJ)