Cover Story: Full Sweep
Like its industry colleagues, PCH also is trying to determine the role social media will play in its overall marketing plan. Glantz explains that social media offers untapped growth potential, but the company is still looking for the right vehicle within this environment.
"All social media is being tried out, but Facebook is what everyone is watching closely," he says. And, so far, he likes PCH's chances with this online community. "Big companies like Starbucks and Gap have major audiences. But when they [offer a coupon], they get just 1 percent to 2 percent response. PCH gets up to 5 percent response" with the prize promotion offers it has tested.
Integrated Marketing Takes Integrated Teamwork
The cardinal rule of any direct marketing media buy is that it's not the spend but the return that matters. To this end, PCH works diligently to determine ROI against its various marketing goals. Princiotta describes it as an "all-hands effort by the [marketing] team," where it looks at what PCH needs to achieve months in advance; tries to develop unique propositions for each campaign along with the appropriate performance metrics across each channel; and then uses analytics tools and works with PCH's statistics team to project response, as well as measure performance for each campaign. In general, senior management oversees the alignment of offline and online marketing efforts, from campaign development to backend measurement.
Campaign performance is under constant review, so PCH can make "changes during campaigns to leverage when certain offers are performing better at both the merchandise level, offer level and media level," says Princiotta. He emphasizes that a key focus for the company is carefully selecting which PCH properties are being exposed during the acquisition path for new customers.
Glantz adds that, during TV campaigns, the team combines analytics reports with daily meetings to allow for nimble response to opportunities and changes in market conditions.