Catalog and Direct Selling: Don’t Leave Money on the Table
Techniques that increase response, average order and overall profits
Many direct marketers unwittingly leave money on the table with every transaction. One transaction at a time, it may not seem like much. Collectively, it could mean thousands of dollars robbed from the bottom line.
Here are five techniques that not only will increase your average order and add to overall profits, but in many cases also increase overall response. All five should become part of your all-around merchandise and creative strategies.
Cross-sell Before the Checkout
Most successful direct marketers already know the value of cross-selling on the telephone or online, but few take advantage of this successful technique early in the buying process. Always employ a merchandise plan that strategically cross-sells on a general basis or with specific products.
• An example of a general cross-sell: Wolferman’s English Muffins extends the offer “add a preserve to any gift for only $4.99” throughout its catalog.
• An example of a specific offer: If you are selling a coat, offer the matching gloves as a value proposition, “for only $14.95.”
For some of your customers, the added incentive might tip the scale and encourage the initial sale. The caveat here is that this technique only will work if the cross-sell offer is intrusive in its creative presentation. Make it stand out.
Play the Margins
If you are selling similar products within the same category, always push the product with the better margin. This technique is especially successful if the product has features or benefits that can be played up in the creative presentation. This might include a more effective headline, captions or callouts that draw the eye in and sell.
This also applies to your house brands that almost always have better margins. Even if you can sell the house brand at a slight discount, as long as you sell it more effectively, you should add more profit dollars to most transactions.