The Catalog Conundrum

As much as people look forward to changing seasons, there are some who dread those times of year. Spring and fall mean not only a change in weather and pretty scenery but also overflowing mailboxes and overloaded trash cans. Disdain stems from the onslaught of catalogs that accompany any new season.

But do we, as customers, consider the effort put into producing these catalogs while we spend less than a minute flipping through each one? Imagine the mind-boggling time invested in printing and mailing all the catalogs you receive, not to mention the costs. According to the Direct Marketing Association (DMA), printed catalogs generated $7.09 for every dollar spent on them in 2005, while e-mail marketing campaigns generated top revenues of $57.25 for every dollar spent. Despite this information, American firms in 2005 spent $300 million on e-mail campaigns while they put almost $19 billion in printed catalogs. That is a whopping figure allocated to a campaign that produces almost eight times less return on investment than e-mail marketing.

Thankfully, technology has come to our rescue once again — this time in the catalog creation and distribution processes. Technological innovations enable companies to easily create multiple catalogs and send them to customers electronically. These days, a central catalog-management system is almost as integral to a business’s needs as a fully functional e-commerce Web storefront.

Even though catalog-management solutions have been around for a while, recent innovations have underscored their importance. A robust catalog-management system will help an organization build multiple catalogs on the fly, which they can send to customers as e-mail attachments and showcase on their Web sites. With a state-of-the-art catalog-management solution, there are no limits to creating a number of catalogs with any number of products. Advanced virtual-sampling technology can enable companies to create personalized catalogs for their customers by showcasing the customer’s logo, images or text on the catalog or catalog products.

Technology has also enabled companies to showcase catalogs in different ways. They can create digital catalogs either in an Adobe PDF format or in a much glitzier Adobe Flash format with page-flip technology that recreates the experience of a conventional, mailed catalog. Either form of digital catalog gives companies more control over content. To take it up a notch, technology lets businesses create 3-D product images in PDF catalogs, which provide vivid detail.

Technology has managed to cut overhead costs for companies that periodically print and distribute catalogs. Using the latest catalog-management solutions, businesses can create catalogs seasonally and send them electronically to whomever they choose. Unlike traditional methods, catalog-management solutions can measure the effectiveness of a catalog campaign. They can track user response and calculate the number of page views, discerning the pulse of the buyer.

The DMA expects the value generated by e-mail marketing to decrease in the next few years, with projections to fall to around $41 returned in 2011 for every dollar spent; meanwhile, the DMA expects the revenues generated by print catalogs to increase to $7.28 in 2011. This evidence shows that companies should not totally abandon their print catalog efforts. With technology as an enabler, companies can derive maximum leverage by opting for a mix-and-match approach. Technology enables businesses to electronically send personalized digital catalogs and, based on the response, send potential customers printed catalogs to create brand awareness and establish a connection.

According to Dare Marketing Inc., a non-personalized direct mail product has a 2 percent conversion rate, while a personalized direct mail product has a conversion rate two to 15 times higher. A potent catalog-management solution will enable you to build personalized catalogs for your customers with products bearing their logo and branding, creating a sense of endearment toward the products.

A centralized catalog-management solution helps companies organize their product offerings much better. With a centralized catalog, companies can create multiple Web stores for their customers and process orders through a centralized system. Each Web store can have different product lines with fully functional e-commerce capabilities. Having an effective, centralized catalog and multiple stores for customers enhances the company’s profile and de-clutters the order-procurement process.

Of course, the last major issue to consider — and often the first consideration for many businesses — is price. Fortunately, sophisticated catalog-management solutions are very cost-effective. Maintaining, running and hosting an effective catalog-management solution costs a fraction of what companies might allocate for printed catalogs.

There are many upsides of a robust catalog-management application, including that it can help reduce overhead costs and promote green initiatives. Ask your clients what they think. Chances are, they’ll be happy to view your catalog electronically — and they’re sure to thank you when you don’t clog up their mailbox.

Vasu Ram is the CEO of SolveIT Inc., a Massachusetts-based premier IT-solutions provider and an associate member of Promotional Product Professionals of Canada (PPPC). SolveIT’s framework software product, CustomView, helps promotional products professionals have vibrant, online storefronts with full e-commerce functionality and helps companies offer virtual samples and create digital catalogs. To learn more, visit www.customviewonline.com, and to learn more about the company, visit www.solveitcorp.com.