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| Marketsmith, Inc. and Lett Direct, Inc. Sign Agreement |
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| Postal Update |
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| Ask the Marketsmith |
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| Make Every Page Count |
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| Why Databases Make Us Executives Mad |
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| Monica C. Smith Discusses Slide in Internet Sales |
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| Marketsmith Signs Two More Databases |
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| Monica C. Smith offers tips for 360 degree customer view in DMNews |
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| Marketsmith Selected by Abacus as Webinar Expert |
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| Joining the MI Generation |
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| Marketsmith Lands Another High-end Retailer |
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| An Industry in Crisis - An Advocacy Group Provides Hope and Strategies |
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| Cat Herding |
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| Press Release - It's All About MI |
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| "Vendorship" - The thin line between success, pain and comfort |
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| Update on Sales Tax Issue |
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| High-end Children’s Apparel Company Relies on Marketsmith |
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| Monica C. Smith Elected to ACMA Board |
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| Marketsmith Recaps New York State Sales Tax Law |
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| Monica C. Smith Participated in Executive Round Table at DMI Coop |
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| Catalog Industry Postal Reform Update from ACMA |
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| Another Big Month for Marketsmith |
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| Marketsmith to Create Database and Direct to Consumer Program for Luxury and Fashion Eyewear Company |
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| Big Month for Marketsmith as Four Clients Join Roster |
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| Marketsmith Promotes Carina Pologruto to Senior Manager |
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| Data Hygiene Saves Money and Improves Results |
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| College of Mount Saint Vincent Senior Receives Marketsmith Entrepreneur Award |
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| News Archives |
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| The following article appeared in the March 24, 2009 edition of Catalog Success: Tactics & Tips e-newsletter. See below for a link to the Catalog Success website. |
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When Shopping isn’t Fun Anymore
By Paul Miller, editor-in-chief, Catalog Success |
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| Beyond the myriad of problems affecting so many businesses this year, you know what else is causing trouble? Consumers aren’t finding shopping fun anymore. During a presentation at the NEMOA Spring Conference in Boston in mid-March, Monica Smith, president/CEO of Morristown, N.J.-based marketing resources firm Marketsmith Inc., shared results of a recent consumer focus group her firm conducted. She offered several pointers on how marketers should react this year. |
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| “This year,” she said, “consumers are trying not to buy something, as opposed to just a few months ago.” |
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| In sharing some of her findings, as well as those from recent BIGresearch data, she noted how some keywords to describe multichannel shopping from just last year, such as entertainment, mindless, luxury and even American dream, have been replaced this year by necessity and void, among others. |
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| She noted that 57 percent of consumers from a recent BIGresearch report said they're more focused on needs over wants, and just one in five consumers were confident in the economy a couple of months ago. Also, in sharing some information she gathered from Marketsmith’s consumer focus group, she showed how many of the mothers in that group said they’d cut back on children’s clothing purchases this year. |
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| “They’re still buying, and gift giving isn’t over,” Smith said. “But ostentatiousness is over. Consumers are more focused on sales than they were in the past.” |
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| She offered the following data as well: |
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 | on average, people in her focus group receive 25 to 35 catalogs per week; |
| the main reasons given why people shop through catalogs are for unique items, gifts and instant gratification; |
| consumers receive 10 to 40 e-mails a day and are more inclined to open those that offer some sort of deal; |
| paid search is used “less than we expect”; and |
| half of Marketsmith’s focus group said green initiatives were important to them. |
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| She closed with several pointers, all focused on the current year and challenges ahead: |
| 1. | Make your message critical and relevant. |
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| 2. | Show customers you’re willing to do your part in this bad economy. |
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| 3. | If you’re giving away something, indicate why you’re doing it. |
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| 4. | Consider getting into kiosks and retail pop-up stores. |
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| “I don’t think the days of being able to mail the same circulation [of print catalogs] are coming back,” Smith said. “The reality is, if you want to grow, you’ll have to find more outside sources. Consider DRTV, postcards, banner advertising and local media.” |
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| Reprinted with permission from Catalog Success |
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| Monica C. Smith explores the Mind of the Multichannel Consumer at NEMOA Spring Conference |
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| Monica C. Smith, Marketsmith, Inc. President and CEO, is the featured speaker at the NEMOA afternoon general session, Thursday March 12, 2009. Monica will deliver a multimedia presentation that focuses on understanding a customer’s path to purchase given the tectonic shifts in the way people think about and actually purchase products in today’s multimedia, multichannel environment. |
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| Drawing on client and research data, Monica will identify different customer groups and what is important for each group in this new world order, what triggers engage the different groups, how customers disengage from a brand, and how merchants need to think about communicating most effectively with their customers – which channels work for whom and how do the multiple channels interact from the customer perspective. |
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| NEMOA’s Spring Conference takes place March 11-13, 2009 in Boston at the Renaissance Boston Waterfront Hotel. For more information, please visit www.nemoa.org. |
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| DRTV Giant chooses Marketsmith |
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| Multimillion dollar direct response TV merchant has chosen Marketsmith to provide strategic guidance and oversee its marketing programs. This marketer of innovative small appliances is interested to grow its sales and market share using direct response television and other media. Marketsmith will apply rigorous performance based metrics and business rules to identify the most efficient and effective advertising mediums. |
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| “We are very excited to take on this new venture brought to us by a former client,” stated Monica C. Smith, Marketsmith President and CEO. “We have found that our in-depth analytical approach brings clarity to the complex intersection of multiple data points in this arena and allows us to create algorithms and results oriented metrics to optimize media spend.” |
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| Marketsmith to perform Audit for Home Décor Marketer |
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| Home Décor multichannel marketer of handmade, hand-decorated pottery, tile, furniture, and home furnishings has chosen Marketsmith to help the company assess its current business model and determine opportunities for increasing its bottom line. Marketsmith will provide a forensic analysis of past performance and growth potential through offline and online channels. |
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| Monica C. Smith, President and CEO of Marketsmith welcomed this new client. “We are so pleased to be working with this company known for its attention to detail and fine workmanship. We share a commitment to quality and I know we will deliver an analysis and recommendations that will help this merchant build on its strengths to move forward confidently, with strategies that will improve overall performance.” |
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| Two Additional High-end Multichannel Marketers select Marketsmith to build Databases |
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| International fine linens and luxury apparel and accessory marketers have tapped Marketsmith to build and manage their marketing databases. These multichannel marketers want to bring an added level of sophistication to their marketing efforts by increasing their understanding of their customers and their purchase behavior over time in order to maximize marketing activity results. |
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| “Expanding on the circulation services we currently provide to these two high-end retailers, we are particularly pleased to be able to improve on the services we deliver through the implementation of a marketing database. Marketsmith’s cost effective marketing database option offers a holistic customer view at an affordable price. It is perfect for marketers with file sizes of fewer than one million names,” explained Monica C. Smith, Marketsmith’s President and CEO. “We can give both of these businesses real insight into their customers buying habits and structure marketing programs that build on that knowledge, creating offline and online strategies developed from multiple criteria. We expect the increased degree of understanding that comes with the database use to translate into tangible, bottom line results for each company. These two databases bring the total number Marketsmith has built in the second half of 2008 to five.” |
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| FOR IMMEDIATE RELEASE |
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| Marketsmith, Inc. and Lett Direct, Inc. Announce Alliance |
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October 22, 2008. Morristown, New Jersey and Bethany Beach, Delaware
Today, Lett Direct, Inc. and Marketsmith, Inc. formally announce they have signed an agreement to offer services and expertise jointly to the clients they serve. The alliance shows a long term commitment to each other, a mutual platform, and the mission to serve the catalog community with excellent service, low cost, high value solutions and a wide breadth and depth of expertise. The firms will remain two separate companies offering one service platform. The joint marketing services include on- and offline circulation planning, optimization, and analysis for all marketing media (direct, space, radio), marketing databases, merge/purge, and email deployment and management. |
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| Together Marketsmith and Lett Direct are positioned to be the most cost effective, responsive, and comprehensive marketing team offering analysis and solutions in all online and offline media, with a particular emphasis in contact strategy and building marketing databases that are guaranteed to be the lowest cost solution, fastest build, and practical for any catalog model. |
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| Monica C. Smith, President & CEO, Marketsmith, Inc. said ""I am thrilled to be working in collaboration with Steve who is a proven entrepreneur who delivers great value to his clients. Marketsmith will work in conjunction with the Lett Direct team to add our strategic insight, multi-talented team, and operational infrastructure to augment his current offerings." She continued, "Lett Direct and the brand Steve has built is fundamentally in line with our organization, offering a high service level, a passion for the client, and an Executive with a strong point of view. I have long admired his writing and love the Brands he serves. Steve has sound judgment, a steady hand, and a great skill, especially in the print side. Lett Direct and Marketsmith complement each other. Steve has shown himself to be a great mentor to me, offering sage advice, entrepreneurial thinking, and a willingness to grow our collective companies to be the preeminent marketing resource for the entire catalog community, no matter what a catalog's revenue size is. Most importantly, as our catalog community faces greater challenges than ever before, circulation planning is not enough for any cataloger; so the combination of our platforms leverages the greatest tool set available as an out-of-house solution. Circulation-only houses, consultants, or add-on services offered by list firms will be challenged to offer what our joint model can do in terms of analytics, analysis, turnaround time, success rate, and price. Overall, it will be hard to compete." |
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| Stephen R. Lett, President & CEO of Lett Direct, Inc. stated "The Marketsmith Brand is well respected in our industry. This agreement will allow us to share the expertise of both firms on specific projects for the benefit of the client. They do great work, and I have long appreciated them from a distance. We have not competed against each other, because traditionally we serve two different market needs in the catalog segment. Marketsmith has a strong reputation for quality of services, attention to detail, and focus on client needs." He added, "Monica has built an infrastructure that helps catalogers quickly find and apply the answers they need to their business model. As a whole, their end-to-end solution is fast, creative, forward thinking, and well rounded. Meeting them and having a few projects under our belts together has cemented this relationship with confidence." |
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About Marketsmith, Inc.
Marketsmith, Inc. is a strategic marketing company, serving catalogers, retailers, non profit organizations, and other multichannel marketers since 1999. We are the most innovative provider of multichannel marketing strategy, customer insight, analysis, and marketing optimization in the industry. Our multi-disciplinary team of retail, catalog, and other multichannel marketing professionals has extensive experience and expertise in strategy development, customer acquisition and retention, in-depth analysis, building brand awareness and loyalty, online and offline contact strategies, and data structure and management. |
 Monica C. Smith |
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About Lett Direct, Inc.
Lett Direct, Inc., started in February, 1995, as a consulting firm specializing in Catalog and Internet Marketing, specifically: Strategic and Circulation Planning, Demand Forecasting, Plan Execution, Internet Marketing Analysis, and other services for the direct marketplace. Steve started the business after being a cataloger himself for 25 years. He spent 15 years with business-to-business catalog companies, the balance with consumer catalog firms. Lett Direct, Inc. has built a team of seasoned catalog circulation professionals, all with the necessary experience to support clients. |
 Stephen R. Lett |
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| For further information, contact: |
FOR MARKETSMITH, INC.
Davey Rosenbaum, Vice president Marketing Operations, Marketsmith, Inc. 973.889.0006 |
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FOR LETT DIRECT, INC.
Stephen R. Lett, President, Lett Direct, Inc., 302.539-7257 |
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| Marketsmith Signs Two More Databases |
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| Two more companies have just selected Marketsmith to provide their database solutions. |
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| A high-end children’s apparel specialty retailer is expanding its direct to consumer activities. The database will provide a single repository that houses transactions from retail stores, the web, catalogs, and emails allowing the company to gain more in depth understanding of its customers purchase behavior and improve the outcomes. |
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| A cataloger that features quality period furniture and home décor has decided to move its current database to Marketsmith because the Marketsmith solution is more cost effective in providing a consolidated and actionable view of customer activity and tracking the effect of each contact vehicle across all channels. |
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| Monica C. Smith, President and CEO of Marketsmith, stated "Clearly the record number of databases we are building shows that we have created a solution for catalogers and retailers that is affordable, productive and valuable. We focus on giving our clients a holistic view of their customers that feeds offline and online marketing programs, allowing us to fine tune strategies based on multiple criteria. We expect each company to experience 20% growth in the next year. Our cost effective solution provides a level of marketing sophistication that might otherwise be unaffordable in today’s challenging economy." |
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| Monica C. Smith offers tips for 360 degree customer view in DMNews |
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| With high investment costs and not-so-simple database integration strategies, it can be tough for retailers get started in multichannel marketing. Four experts share their best tips. |
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Monica Smith
President and CEO, Marketsmith Inc. |
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| Creating a 360-degree customer experience contains inherent contradictions. While we want to have a comprehensive view of our customers, we also want to deliver relevant content efficiently; that is, ultimately delivering fewer messages and generating greater return for our marketing spend. |
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| So how do we understand our customers completely and interact with them only when the outcome is likely to be positive? The answer lies in knowing when and how to use our marketing databases across all channels. |
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| The goal of 360-degree marketing is that the merchant and the customer are on the same path, using services and information which facilitate a favorable outcome for the customer. For this to happen, it's necessary to capture all transactions, interactions and communications with customers. All employees with the potential to touch customers or customer data must also be trained to understand the merchant's product/services, their value to customers and the customer service ethic. Then you can create processes by which customer service personnel and customers themselves can access customer history in-store, on the Web and over the phone. |
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| Finally, make sure you understand the responsibility as a guardian of customer data. Is a 360-degree customer view bordering on privacy issues? The implications are very different for a financial services company, for example, than for an apparel company. |
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| The 360-degree customer view is just a reminder that technology, data and analytical intelligence are not enough for multichannelers to thrive. What we need is an end-to-end view of the experience, then to fix any spot that does not deliver great customer service and value with customer-friendly policies. As you chase to fix what's broken, you will inevitably see your customers because you will be on the same path. Then you can do one better, creating an experience that surpasses their expectations. |
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THE TAKEAWAY
Capture all interactions and communications with customers |
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| Read Full Article in DMNews. |
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| Marketsmith Selected by Abacus as Webinar Expert |
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| Abacus, the leading provider of co-operative data selected Marketsmith, Inc. , a best-in-class marketing leader of direct marketing strategic services, widely recognized as the most innovative circulation, database, and analytics consulting company in the U.S., to provide the industry expertise in their upcoming webinar – How Many Co-ops Should You Use? The webinar will offer insight into how to determine optimal use of co-operative databases through a detailed description of the evaluation process Marketsmith employs in circulation planning and analysis. Susan Pizzano, Marketsmith’s Executive Vice President and Monica C. Smith, President and CEO, will join Casey Carey Senior Vice President Product Management at Abacus to cover: |
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| Key trends driving this question |
| Impact of multiple co-ops on your marketing strategy |
| Tips and strategies for evaluating co-op performance and value added |
| How to conduct an evaluation process |
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| Please click here for more information or to register. |
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| Joining the MI Generation |
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| High-end women’s fashion accessory company has selected Marketsmith to create and implement its MI (multichannel integration) program, expanding Marketsmith’s scope from offline circulation to a comprehensive marketing strategy grounded in a holistic view of the customer. Marketsmith will oversee and manage a database build which will allow this merchant to capture and track transactions across all channels and develop a coordinated multichannel contact strategy grounded in an understanding of historical performance. |
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| Monica C. Smith, President and CEO of Marketsmith, stated, “With a targeted audience of women seeking distinctive fashion accessories, it is critical for this niche merchant to gain the fullest understanding of its customers’ purchase patterns and behaviors. Our new MI program will allow us to consolidate and provide in-depth analysis of transactional behavior to create the most effective contact strategy. To be successful in this shifting marketing environment, a company must coordinate its marketing operations across all channels. It is the MI generation for marketers.” |
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| Marketsmith Lands Another High-end Retailer |
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| International multichannel provider of luxury linens to consumers and the hospitality industry has selected Marketsmith to execute catalog mailings and support new store openings, with particular emphasis on growing the housefile through new prospecting initiatives. |
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| Monica C. Smith, Marketsmith President and CEO, expressed her enthusiasm for our new client, “We are thrilled to be able to work with this venerable company that has been manufacturing and selling linens which set the standard for quality for a century and a half. Working with many high-end manufacturer-retailers, Marketsmith brings particular expertise to helping this unique set of merchants reach their individually defined audiences, growing both their circulation and revenues.” |
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| College of Mount Saint Vincent Senior Receives Marketsmith Entrepreneur Award |
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| Monica C. Smith, founder of Marketsmith, Inc. and graduate of the College of Mount Saint Vincent, established an award through her alma mater to help young female entrepreneurs start up businesses. We are pleased to announce that Kaitlin Christi Burud, a business major and graduating senior at the College, has been selected as the first recipient of the Marketsmith, Inc. Award for Entrepreneurship for $5,000. |
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| With a life long love of sports and a strong belief in the value of a physically active lifestyle, Ms. Burud developed the concept of a sports-themed day care center, All Star Day Care, for parents who want to nurture athletic activity for their 2 to 6 year olds. She completed her project while enrolled in the college's course in entrepreneurship. |
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| “I am pleased that the Mount is encouraging young women to recognize they can be business innovators and leaders. I love Kaitlin’s business idea and I love the fact she is a successful committed student athlete. I am sure she will draw upon those skills as she begins to face the challenges and victories of entrepreneurialism. The idea is fantastic because it is scalable. It can be replicated in a franchise environment and can be global. As a former student athlete, a fellow female entrepreneur, and an alum, I wish Ms. Burud ongoing success in every venture and on her journey.” |
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| The Riverdale Press |
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| College of Mount Saint Vincent |
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| High-end Children’s Apparel Company Relies on Marketsmith |
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| Retailer/mailer of high-end children’s clothing has selected Marketsmith to review its circulation plans and recommend acquisition strategies to grow its exclusive market. “Once again,” commented Monica C. Smith, President and CEO of Marketsmith, “We have been selected to help a multichannel marketer improve its performance in the luxury marketplace. Our team of strategic marketers is familiar with this audience and practiced in identifying strategies to expand reach and results within this targeted group of buyers.” |
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| Monica C. Smith Elected to ACMA Board |
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| At the March 20th Board meeting of the American Catalog Mailers Association, Monica C. Smith was invited by unanimous decision to join the organization’s Board of Directors. Also selected at that meeting were James West of Williams Sonoma, Chris Paradysz of ParadyszMatera and Jim Feinson of Gardeners Supply. On receiving notice of her election, Monica stated, “I am very pleased to be part of the only organization that is championing catalogers in these especially challenging times of cost increases and increased environmental pressures. Through its strong advocacy, ACMA is implementing initiatives to make sure that catalogers’ voices are heard in regulatory circles. ACMA is holding its first conference is in Washington later this month and I encourage all catalogers to participate. (see "ACMA Conference - Postal Rates and Advocacy") Marketsmith will continue to funnel information, understanding, and action items to a catalog community that we hold precious.” |
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| Marketsmith Recaps New York State Sales Tax Law |
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| Many internet retailers are concerned about the new law in New York that requires “vendors” who meet certain requirements to register for and pay sales taxes. Marketsmith has been reviewing the details of the law. Below we present our understanding of the law. However, we urge all retailers who may be affected by the provisions of the law to check with the DMA and/or their attorneys to ensure they respond appropriately for their individual business models. |
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| First we must say that we believe no retailer should flaunt existing laws, however unpleasant or onerous they might be. It is also true that the law may require fleshing out in the courts because several of its requirements are not specific enough. |
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| The law defines two basic conditions which must be met by a retailer in order to obligate the merchant with respect to sales tax. The law seems to be geared toward internet retailers with no physical presence in New York State. The following details the conditions necessary to cause compliance: |
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 1. | The retailer has no physical presence in New York and directly uses New York residents to solicit sales or make or maintain a market in return for commissions, referral fees, or other types of compensation. If the retailer uses a third party who uses NY state residents to solicit sales etc. for compensation, that is also considered as meeting the first requirement. |
| 2. | The retailer has no physical presence in New York and must have generated at least $10,000 in sales to customers in New York as a result of the agreements with residents to solicit sales etc. (as described in #1) for the last four tax quarters. At this time the period of March 1, 2007 through February 29, 2008 is considered the last four quarters since the law was passed in April (tax quarters end February, May, August, and November). |
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| If the retailer has customers in New York and uses the post office or common carriers to deliver the products but does NOT have a physical presence in New York, AND has no relationships with NY residents to solicit sales or make or maintain a market in return for commissions, referral fees, or other compensation, the merchant has no obligation to register or pay sales taxes in New York, according to New York State Department of Taxation and Finance, Office of Tax Policy Analysis, Taxpayer Guidance Division, TSB-M-08(3)S, Sales Tax issued May 8, 2008. |
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| If the retailer has no physical presence in New York and places advertisements on local New York websites such that when someone clicks on the ad that person is taken to the e-tailers site, there is also no obligation to pay sales tax. If the local site takes a commission on the sale, however, then there is an obligation to pay taxes (assuming the $10,000 threshold is met). |
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| The law requires registration for compliance by June 1, 2008. |
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| It is important to note that New York State presumes that internet retailers will owe sales tax and therefore a retailer must be able to provide proof that it has no tax liability if it is audited. |
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| To provide that proof, the retailer must be able to show that it has no vendors in New York and that it did not meet the conditions stated above for the previous four tax quarters. |
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| The law was passed on April 23, 2008. If a retailer paid a vendor in New York for sales it generated since the law was passed AND that retailer had sales of $10,000 in the previous four tax quarters, the company IS liable for taxes. |
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| HOWEVER, the State provides an amnesty for previous liability for retailers that register with the State for tax compliance by June 1, 2008 and begin to collect taxes as of that date. |
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| Retailers must determine the value of the sales generated through New York vendors to decide whether to continue those relationships or not. And retailers can notify all affiliate site providers that the retailers no longer wish to do business with sites that have a New York presence. According to a session provided by the DMA, that notification should be helpful in making the argument that the retailer does not have a New York tax liability. But we strongly urge retailers that are unsure of their tax status due to the nature of affiliate site provider agreements and sales activity since April 23, 2008 to review the details of their individual situations with competent legal counsel to determine if they should register with the State or not. |
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| On a related note, Amazon is suing the State of New York stating that it does not have a right to collect sales tax from a vendor that does not have a physical presence in the State, based on the 1992 Supreme Court case of Quill v. North Dakota, the ruling from which stated that retailers do not have to pay sales tax in any locale where they do not have a physical presence. Also, Overstock.com Inc. has notified its more than 3,400 New York-based affiliates that as of June 1, they can no longer provide advertising for Overstock.com until New York changes its web sales tax law or the courts declare it unenforceable. |
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| The current conflict is just the tip of the iceberg. There are existing legislation and pending bills that will keep this issue of collecting sales tax when there is no physical presence in the forefront for perhaps months or years to come. In our next newsletter we will explore these issues in more detail. |
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| Monica C. Smith Participated in Executive Round Table at DMI Coop |
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| Monica C. Smith, President and CEO of Marketsmith, led off The View from the Top, a discussion among top executives at the Direct Media Inc. Client Conference and Coop on May 1, 2008. She was joined at the table by Ed Mallin, President of infoUSA Services and Darrell Edwards Chief Marketing Officer from Cosmetique. Monica discussed the importance of combining a love of your brand with sound business practices focused on understanding and measuring your customers’ interaction with your brand to create the most effective strategies in today’s challenging economic climate. Metrics and analysis are critical to moving the needle on your business; loving your brand is the motivation to come to work every day and make your brand the best it can be as well as inspiring your employees to share that energy and commitment. |
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Live from the DMI Co-op: Leaders Stress Numbers, E-Commerce and... Fun?
By Richard H. Levey |
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| What does direct marketing's future look like to Marketsmith Inc.'s Monica Smith, infoUSA's Ed Mallin and Cosmetique's Darrell Edwards? Not as dire as the economy might suggest, and a whole lot more digital. For their take, click here: directmag.com/news/dmi-leaders-numbers-fun-0502/ |
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| Industry E-Newsletter: April 18, 2008 |
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| Dear Members and Friends: |
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| New membership commitments: Cigars International, CMS Direct, Curtis Barry & Co, J.S. Eliezer Associates, Lenser, Marketsmith, Shades of Light, Sporty’s and Williams Sonoma. We welcome and thank these fine companies for their support! |
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| Decisions made at the top? If you are a CEO, CMO or CFO reading this, you are in the position to see the big picture and make the decision to allocate some precious resources in an area it will pay back rich rewards. If you are on the fence, uncertain but curious, please give me 15 minutes of your time. In that short time, if I cannot convince you of the pressing need, then you will remain with my gratitude for having listened. You may find that our work is compelling for your company and support us. You may also determine that it is not the necessary expense that must be made now. I will take my chances. Give me a call 401-529-8183. |
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| ACMA continues important work with the USPS: Last month, we had another “top-to-top” meeting with the USPS. We met with PMG Jack Potter and other top USPS executives who control our future with the mail: CMO Anita Bizzoto, VP Pricing Steve Kearney, VP Legislative Affairs Marie Therese Dominguez, and others including his chief of staff. Due to a time limit on our meeting, I asked Monica Smith, CEO of Marketsmith to join me. Monica’s firm works at a deep level with a variety of catalog companies. She has intimate knowledge of these companies’ financial performance and operating priorities. Monica has personally reviewed over 200 cataloger P&Ls and her company works with catalogers who sell less than $5 million to over $50 billion each year. Together, the two of us presented the state of affairs in the catalog industry and what the future holds given the trajectory we are on now. Our message: catalogers are moving as fast as they can to reduce their dependence on mail. Once they build infrastructure and hone their business to mail less, they will be harder to invite back into the mail. This outcome is clearly not in the best interests of the USPS or even for the broader mailing industry. |
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| Catalogs deliver value in the mail: Mr. Potter “gets” the value that catalogs play in the mail stream, the content value to the mail recipient that makes mail more relevant for all types of mail borne messages. He has seen the Postal Service’s own studies that indicate Americans like their catalogs, and look forward to receiving them. He understands that together as an industry, catalogers contribute billions to USPS coffers and cover a significant portion of the overhead cost of running this nation’s mail system. He is familiar with the R2006-1 rate case and the huge rate increase it created for our industry. He challenged me: postage is not the only thing going up for catalogers. Why the pressure on the USPS? Aren’t catalogers under pressure from paper, ink, freight, and other costs? |
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| USPS understanding of cataloging: The USPS did not clearly understand the magnitude. We responded that marketing costs represent about 35% of sales for a B2C cataloger with postage typically 50% of this cost or 17%+ of total sales. All these other cost centers amount to less than this when taken together. Thus, the impact last year’s postage increase is game changing. More, since well run companies make 5% on sales, a 30% increase to a 15% cost takes a well run company to breakeven. Unfortunately, the USPS has not had the opportunity to become intimately knowledgeable about our mail segment and did not understand how fundamental the impact of the last postage rate increase has been. |
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| Space does not permit me to detail all the items discussed. This remains a work in process. We continue our dialog with USPS officials about the range of acceptable alternatives to address this situation. This was a very productive meeting on circumstances facing catalogers and why it is so critical that we address the rate shock our industry is in now. |
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| USPS volumes: In our meeting, we also explored how the USPS and catalog industry can work together to grow volumes. We examined different approaches being used by other industries and the incentives that might be considered to encourage catalogers to not only mail more flats but also send more packages their way. Recognizing that the USPS decision making process is complex, I stressed the urgency that these issues be addressed. |
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| Organizing around the customer: I also asked the USPS to consider forming a catalog team charged with growing volumes across all our mail classes. As catalogers today, we have to deal with a wide variety of USPS personnel for each of their products. No one is a catalog specialist with deep understanding of our industry and needs. We would like to see the USPS establish a multidisciplinary team headed by a senior level person charged with becoming expert in our businesses who can partner with us to solve problems, grow volumes and address unmet needs. At the end of the meeting, the PMG said the USPS would do an internal review of a different structure. |
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| Washington Catalog Forum: Mr. Potter also committed to a USPS catalog summit in Washington where we can expand the dialog between the catalog industry and the USPS. This will be a wonderful opportunity to get our industry leadership in front of key USPS decision makers to build on the dialog we have established. Look for more information in the next few weeks. |
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| Slim Jims to slim down? A format that many are testing or adopting is under pressure of losing its impact. We are communicating to the USPS that they can’t provide an “option” to egregious cost increases on one hand then remove it after many work so hard to adopt it. Most urgently: if you are now or are considering using the “slim jim” format (folded catalog tabbed to be a letter shape), then we need to hear from you right away. The USPS is considering a major revamp to the slim jim format and the catalog industry must comment to the extent this is an important format we want to mail. The proposed rules may have a great deal to do with the maximum number of pages per piece and response rates. Some of you see this as a key part of your mail plan in the future. We hope those now using or planning on slim jims in the future will get in touch right away so we can consider your views in how we respond and follow this matter. |
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| ACMA was instrumental in getting more time to implement the Intelligent Mail Barcode. The implementation date has been pushed to May 2009 but don’t wait to understand and react to the implications for your firm. New regulations covering the IMB and address placement have recently been issued which are under review and study by ACMA’s Technical Committee. Members will be receiving a Technical Bulletin shortly detailing these. |
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| “Do Not Mail” doesn’t go away: Work continues on the Do Not Mail front. This is a highly complex issue with numerous viewpoints driven by the variety of business models and how address suppression affects individual mailers. ACMA’s Do Not Mail Task Force continues to work on the issue and has expanded the participation to include some others in our industry to better sort out the right direction for catalogers. We will report on this as appropriate going forward. |
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| Our Challenge - ACMA must grow to over a hundred catalogers for our work to be sustainable. Given the pressure on P&Ls in the “possible recession,” many of you indicate you are having a hard time coming up with the price of admission. Let’s put the price of ACMA membership in perspective; at a quarter of a percent of what you spend on postage, as of next month, your ACMA membership investment has paid you back in less than 90 days! It’s really a faster payback since postage increases are cumulative, your ACMA investment will continue to pay dividends for years (the ongoing value of $150 million rate mitigation for catalogers). Your support is critical now. |
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| We have grown to 60 plus members in one year. This is an important accomplishment. We need to grow to 100 or more in the next six months. Those of you who have been involved in postal affairs over the years have recognized the impact we have made in a short period of time. Those of you who are new to the game and are participating have expressed pride in our accomplishments. Those of you who admire our progress but don’t join because you assume others will carry the load are making a mistake. The Postal Regulatory Commission and the USPS top management have told us they need us to help them develop solutions to the problems we share. This commitment is not a “nice to do,” IT’S A NEED TO DO. OUR VERY SURVIVAL IS AT STAKE. |
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| Please do your share or we can’t: Postmaster General Potter specifically wanted to know how many catalogers belonged to ACMA. We cannot be your advocate without you! Help unite the industry for our own welfare. Please join us today. Take control of your future now. |
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Sincerely,
American Catalog Mailers Assn. |
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Hamilton Davison
Executive Director |
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| If you would benefit from receiving this newsletter, sign up on www.catalogmailers.org. |
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| Another Big Month for Marketsmith |
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| Morristown, New Jersey - April 4, 2008 |
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| Four New Clients for Circulation and Strategic Services |
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| Monica C. Smith, President and CEO of Marketsmith, announced that four new clients with diverse needs and very different product mixes have engaged Marketsmith to provide a range of strategic and circulation services. "We have been leading the conversation in the industry about the need for a strategic perspective that takes a hard look at the numbers to determine a company's best path for growing revenues and circulation in these difficult times. In the last two weeks, four companies have come to us because they recognize that we can help them understand their past and current performance in a way that will allow them to move forward with confidence. We welcome them all to the Marketsmith family. |
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| Marketsmith adds another Luxury Mailer to client roster |
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| Marketsmith has been selected by specialty luxury marketer to provide strategic direction and handle all online and offline circulation services. "We are so excited to be working with this merchant whose goal is to provide products that inspire and delight. Its unique merchandise mix and energetic management team inspire and delight us. We will create and implement a plan that will build their Brand in the marketplace." |
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| Promotional Products Mailer selects Marketsmith to do Audit |
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| A major mailer that specializes in promotional, education and incentive programs for businesses, schools, medical institutions, nonprofits, and other organizations that wish to show customer and employee appreciation through branded, creative, and targeted products has selected Marketsmith to perform an in-depth audit. The merchant is looking to maintain its position on the cutting edge in its field through forensic analysis which will identify opportunities for growth, improved customer services, and more focused and efficient operations. Marketsmith CEO and President, Monica C. Smith stated, "This company loves its Brand and we love being able to help them take their Brand to the next level through our actionable analysis." |
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| Multi-title Mailer taps Marketsmith for Hands-on Operational Consulting |
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| A nearly one hundred year old mailer of multiple catalogs featuring novelties, gifts, and collectibles has engaged Marketsmith to review its practices and procedures in order to bring consistency and accountability to their processes. Marketsmith will evaluate operations against industry standards and develop business rules to ensure consistent applications moving forward. "In this way the company will be able to measure performance and implement efficiencies that will make it more effective in its competitive marketplaces," explained Monica C. Smith, CEO and President of Marketsmith. |
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| Consumer Tool Company engages Marketsmith for Circulation Services |
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| Provider of unique woodworking, outdoor, household, and office tools and gear for the discriminating hobbyist, do-it-yourselfer, and occasional user has chosen Marketsmith to develop and execute its offline and online circulation plans as well as perform analysis on results. "This mailer stakes its reputation on the quality of the products it supplies and is equally concerned about the quality of the services it receives," stated Monica C. Smith, Marketsmith CEO and President. "We know we can deliver the value they seek in the creation and implementation of a contact strategy that will enhance their overall performance." |
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| Marketsmith to Create Database and Direct to Consumer Program for Luxury and Fashion Eyewear Company |
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| Morristown, New Jersey - March 2008 |
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| 130 year old luxury eyewear company with over 100 retail stores in U.S. has awarded Marketsmith a two year contract to create their first ever customer database and launch their direct to consumer program in the U.S. |
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| Monica C. Smith, CEO and President of Marketsmith, stated, "This premier retailer understands the need for great metrics and marketing data in real time, and we are thrilled to help them develop and grow their direct to consumer business. They selected Marketsmith because we know how to make data actionable. They have a great product and superior customer service and need to translate those things into a well oiled marketing machine. That's what we do at Marketsmith - we have the know-how and experience to take their brand to the next level." |
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| "This win cements Marketsmith's position as a leader in taking high end fashion retailers into the multichannel marketplace, creating marketing strategies built on understanding the customer in real time." |
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| Big Month for Marketsmith as Four Clients Join Roster |
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| 1. | Marketsmith Answers 911 Call from Women's Apparel Retailer
Specialty multichannel retailer of Women's Apparel with over 200 retail locations reorganizing its marketing department called Marketsmith to provide interim circulation services to meet tight deadlines. Within 72 hours of the initial call, Marketsmith was on the ground at the merchant's office setting processes in motion. Marketsmith is executing all front end circulation requirements for the retailer, meeting all dates, and ensuring all books will mail as planned. Monica C. Smith, President and CEO of Marketsmith, welcomed this new client saying "We are completely focused on participating in the retail world. With our tools and techniques, we know we can make a difference for this retailer, helping cement customer relationships with timely and targeted communications." |
| 2. | In-depth Marketing Audit for Nonprofit's Catalog Operations
In preparing for a new business venture, a major nonprofit media enterprise with more than 300 affiliates wants an in-depth review of current direct marketing processes and procedures to create a blueprint for moving forward. The organization engaged Marketsmith to perform a comprehensive multichannel marketing audit to evaluate historical performance and lay the groundwork for marketing strategy and practices which will be successful in the new endeavor. "This is what we do", said Marketsmith President and CEO Monica C. Smith, "help organizations understand their customer's behavior better in order to build a plan for growth in a competitive environment." |
| 3. | Circulation Review for Specialty Gift Retailer
A gift retailer, a sister company of a former client, with a specialized product focus contracted with Marketsmith to review past circulation efforts and create a circulation plan for upcoming Spring mailing, to help them strengthen their position with both customers and prospects in a complex and difficult marketplace and build on their recent housefile growth exceeding industry averages by double digit rates. President and CEO, Monica C. Smith stated, "We are very pleased to welcome a new family member to our client roster. Our experience in navigating the complexities of the gift market, which includes companies with an array of merchandise mixes who are all competing for limited demand, allows us to help this company identify its best opportunities for stabilizing its growth and sustaining a positive bottom line performance." |
| 4. | Strategic Guidance for Women's Apparel Manufacturer/Retailer
Manufacturer of women's casual apparel, a former client for whom Marketsmith launched catalog and website channels, has engaged Marketsmith to provide strategic guidance on sustaining and building marketing initiatives. "We love returning clients," explained Monica C. Smith, President and CEO of Marketsmith. "We believe in this brand and its ability to grow exponentially through the channels of direct sales it has opened. With a focused strategy, this company will solidify its place in the online marketplace for women's casual apparel." |
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| In discussing Marketsmith's newest clients, Ms. Smith, stated, "We are very excited to be able to work with this stellar group of direct marketers. Our new clients as well as our current customers are facing uncertainty in the present economy. We at Marketsmith know that we can help our clients successfully tackle their strategic and executional challenges. We give them analysis, insight, and actionable recommendations that will allow them to weather the storm with strategies built on deeper understanding of customer behavior and results. We are ready to meet the continuing challenges and opportunities of 2008 head on." |
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| Marketsmith Promotes Carina Pologruto to Senior Manager |
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 Marketsmith is pleased to announce the promotion of Carina Pologruto to Senior Client Services Manager. Susan Pizzano, Executive Vice President stated,” Carina is fantastic. She is the epitome of a team player; she is a joy to be around. She is the fundamental backbone on the team serving one of our most complex accounts. What we recognize is that Carina is all the things we want in Client Services. She is honorable, focused, organized, and smart.’ Monica C. Smith, President and CEO, echoed Susan’s comments, “Carina is tomorrow’s Vice President. She offers our company and our industry the talent so desperately sought after. We will continue to invest in her as she has in our clients.” |
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| For further information, please contact Davey Rosenbaum at drosenbaum@cmarketsmithinc.com |
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