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June 22, 2007

Want to Boost Online Sales? Launch a Catalog!

The USPS and ComScore recently published a study that once again proves the power of a one-to-one, multi-channel approach to leveraging sales from your customers.

They performed an ROI analysis that showed a group of one million customers would produce $21 million more in revenue than 1 million customers who didn't receive catalogs ($39 million vs. $18 million).

Key findings:

  • Catalog recipients account for 22% of web site traffic and 37% of e-commerce dollars.
  • Online consumers who received a catalog from any given retailer were nearly TWICE AS LIKELY to make an online purchase at that retailer's web site. Additionally, they made 15% more transactions than those who did not receive catalogs and their spending was 16% higher.
  • Catalog recipients made 16% more visits, viewed 22% more pages and spent 15% more time at retailers' site.
  • Catalogs also drove consumers into secure sessions on web sites more often – with 75% more likely to enter this critical area of a retailer's web site where the transaction process begins.
  • Catalogs play a decisive role in driving conversion (percentage of catalog recipients who visited the cataloger's web site and made a purchase) for BOTH prospects and existing customers. The conversion rate increase was most dramatic among new customers, where the conversion rate was about 260% higher than for non-recipients. Even among current customers, the conversion rate was an impressive 67% higher.
  • Catalogs were also shown to transcend demographic groups. Catalog recipients across the board were more likely to buy from the retailer's web site – regardless of household income, geography or education.

The complete study (PDF) is at http://www.usps.com/directmail/_pdf/USPS_WhiteSht9.pdf