This Month at Lenser December 2006

Newsletter Archive

PRESIDENT'S CORNER
By John Lenser, President
As 2006 winds down, I have a sense of greater change than in any year since I entered the world of direct marketing.  While e-commerce has been with us for several years, it seems like in this past year we have most fully recognized the profound changes it implies for how we all do business.  To read more of my end-of-year thoughts, please click here.

And to all our many clients, various affiliates, and gracious readers alike—Happy Holidays!

FEATURE ARTICLE
Four Principles of Strategic Planning
By Al Bessin, Partner
One of the best things about being a consultant is the opportunity to see so many different kinds of businesses.  Though different businesses are certainly at different stages of their life cycles, strategic planning plays an important role in all of them.

CASE STUDY
Understanding the Real Value of a Rental Prospecting List
By Michelle Farabaugh, Partner
Traditionally, rental prospecting results are reviewed based on the total performance of sales per book for each list, and we base subsequent mailing decisions on these results.  In actuality, further analysis should be conducted to determine the true strength of each particular list and whether it makes sense to rent that list going forward.  What value do you apply to unique vs multi performance and the contribution each type provides?  Learn more...

CIRCULATION TIP
By Michelle Houston, Vice President of Circulation and Client Services
Making a List and Checking It Twice!  Good lesson to learn, especially when it comes to inkjet simulations.  Now, be honest with yourself—how careful are you when it comes to reviewing and checking the inkjet simulations your printer provides?  If you’re not careful, you might be surprised at the things you find!  Read more...

CREATIVE TIP
Color Your Catalog or Website “Successful”!
By Carol Worthington-Levy, Creative Partner
Color is one of the very essential elements on a catalog cover or spread.  Yet most designers who are doing catalog design work have never taken the kind of color theory classes needed to be able to use color as an effective tool.  Their failure to make the right decision could lose you sales!  Read more...

multichannel TIP
By Todd Miller, Director of Circulation, Business-to-Business Markets
Traditional catalog-oriented direct marketers have always been suspect of customers acquired via the Internet.  “They are not loyal,” some reasoned.  “It takes a promotion to acquire them, and it takes further promotion to keep them,” others said.  Simply put, marketing managers agree that web-originating buyers are “distinctly different” from those acquired through more traditional sources.

CLIENT FOCUS—ACTION BAG
It all started with an entrepreneurial woman, a reclosable bag, and a dream!  In 1980, Marie Gebbe started Action Bag Company with one product line—reclosable bags.  Being a practical woman and a keen marketer, she understood the many applications for this product.  From there, both her loyal customer base and product line grew.  Read more...

PARTNER SPOTLIGHT—BILL NICOLAI
Bill Nicolai and John Lenser’s business and personal relationship spans decades, so when it came time to add a strategic partner to LENSER, John never hesitated in asking Bill Nicolai to be his first partner.  Notes John, “Bill Nicolai is an entrepreneur, theorist, strategist, and grand tactician extraordinaire.  His forethought and insightful advice has allowed LENSER to grow at an immense rate.”  And the feeling is mutual as Bill adds, “When John asked me to join up with him, it did not occur to me to say no.  I was honored to be able to contribute my knowledge accumulated in my years of experience in this industry.”

AFFILIATE FOCUS—CREATIVE MERCHANDISING SOLUTIONS
Great merchandising is not just about having the “eye” for picking winners.  It is also about supply chain success—being able to successfully and economically supply the merchandise that you have created the demand for and thus generate profit.

NEWS BRIEF

• LENSER welcomes Johnny’s Selected Seeds, VWR Education and Eastwood to our family of clients.

• LENSER is proud to announce the recent partner addition of Mitch Siegler.  Mitch founded and served as CEO of three catalog/e-commerce businesses—Siegler & Co., Treasures From a Bygone Era, and Sovietski Collection.  He has extensive experience in all disciplines of a small catalog company, both at a strategic level and in a hands-on capacity.  He also spent five years as a partner with a boutique investment banking/venture capital firm, where he concluded more than 30 mergers, acquisitions, and financings and headed the firm's consumer/specialty retail practice.  Please visit his bio for more information.

• As we continue to grow, we continue to uncover top-of-field circulation managers.  This month we introduce and welcome Jim Whitford as our newest Circulation and Marketing Manager.  Jim brings with him many years of business-to-business experience, most recently coming from Quartermaster.  He will be working in our ever-growing business-to-business department specializing in B-to-B and hybrid accounts.  Welcome, Jim!

• Mark your calendar now!  Next year’s LENSER Client Summit is scheduled for Wednesday through Friday, October 3-5, 2007 at the Embassy Suites in San Rafael, CA.  Make plans now to stay over the weekend in the beautiful San Francisco Bay Area.  October is one of our best weather months and should be just the right time to catch the harvest crush in the Napa-Sonoma-Mendocino wine region just to our north.

• Over the past few years, news of the death of the catalog industry has been, and continues to be, greatly exaggerated.  A recent article in Business Week indicates that catalogs still occupy the central position in multichannel marketing.  The key fact is that catalogs are a net donor of sales to both internet and store retailing.  This is at the heart of why catalog circulation is up so strongly in the last few years, despite the superior growth rates of web sales.  To read this article, please click here.
  
  
• Chicago in January?  It might be cold outside but there is plenty of friendly warmth and lots of hot topics discussed at the Mailorder Gardening Association 2007 Winter Convention Jan 17-19 at the Swissotel in Chicago.  The MGA Conference is ‘information mecca’ for gardening direct marketers and suppliers.  The MGA hosts a fabulous convention and educational program.  This year includes Geoff Wolf and Michelle Houston, LENSER, presenting “Creating an Annual Contact Plan in a multichannel World.”  For more information on the MGA Winter Convention as well as the benefits of MGA membership, go to www.mailordergardening.com and if you plan on attending, be sure to let us know!
  
  

PRESIDENT'S CORNER
By John Lenser, President

As 2006 winds down, I have a sense of greater change than in any year since I entered the world of direct marketing.  While e-commerce has been with us for several years, it seems like in this past year we have most fully recognized the profound changes it implies for how we all do business.

The web has brought all our clients many challenges.  The largest is competition from discount, low-overhead internet marketers.  There's extreme pressure to be cost competitive; brand identity, loyalty programs, and exclusive product become paramount.  We are all struggling with increased complexity.  Not only must catalog execs understand merchandising, purchasing, creative, print production, database marketing, data processing, and distribution, now they have to master a whole new set of disciplines and technical know-how, as well.

Our staff’s day-to-day tactical challenge is evaluating the performance of marketing programs.  With fewer source codes getting collected, matchbacks become more important, but matchback results are always less certain.  With the web, we are living in a blurrier world.

Nevertheless, the opportunities brought by e-commerce far outweigh any of these issues.  The web allows all our clients to have a retail store that is open 24 hours a day!  The customer can take the initiative to shop at any time; sales are no longer primarily limited to the few weeks following a mailing.  Of even greater value, the web can provide a low cost customer acquisition tool just at a time when soaring postage rates are shrinking the universe of prospect names that can be profitably mailed.

Unfortunately, we are observing many mistakes being made by both seasoned companies and new start-ups.  The most common mistake we see among seasoned catalogers is an underestimation of their catalog sales versus web sales.  We have been called into situations where catalog sales are supposedly falling, internet sales are rising, and sales in total are declining.

What we have discovered is that as a result of the falsely perceived decline of catalog sales, advertising dollars devoted to catalog mailings, particularly prospecting, have been reduced while budgets for internet marketing have increased.  However, when we drill down to what is really going on, we see that the catalog was driving far more internet sales than originally thought and therefore the reduced circulation was bringing the entire business down.

We have observed new catalog companies launching without first establishing an e-commerce business.  A website allows the prospective cataloger to test merchandise, develop creative, and most importantly, develop the nucleus of a buyer file.  The buyer file later allows them entry into the cooperative databases when they begin direct mail prospecting.

Pure e-commerce companies are frequently novices at basic direct mail marketing practices.  For example, when we are contacted by a pure internet marketer wanting to start a direct mail program, they frequently have a privacy policy that precludes them from sharing their customer’s names with anyone—and in some cases even from mailing anything to their very own customers!  The resulting inability to join a cooperative such as Abacus or exchange their buyer file with other mailers can be a major handicap.  Our immediate advice to all internet pure-plays?  Adopt a progressive privacy policy patterned after those of major catalog companies.

FEATURE ARTICLE
Four Principles of Strategic Planning
By Al Bessin, Partner

One of the best things about being a consultant is the opportunity to see so many different kinds of businesses.  Though different businesses are certainly at different stages of their life cycles, strategic planning plays an important role in all of them.

It is easy to get caught up in the day-to-day growth (or even survival) of a business, and postpone strategic planning.  However, without it, a business will flounder.  There are four main principles of Strategic Planning. 

The Value Proposition
In any business venture, there needs to be a proposition that creates value.  This value is the foundation of the offering to the marketplace; it is the value that the market perceives in the offering by the business. 

While we are all somewhat jaded by the company “mission statement” fad that went through businesses in the last several decades where overly idealistic and vague statements were made, the principle that a business enterprise has to have a clear business proposition has not been diminished!  As consultants, one of the first things we try to understand about a client is what the value proposition is.  When it is difficult to identify, it often parallels poor or erratic business performance.

The value proposition is also the foundation for planning and direction of the enterprise and the unifying theme that keeps the founder(s) and staff on the same page and going in the same direction.

“Treat every customer fairly” is not a value proposition, it is a value.  “We provide avid road cyclists with the knowledge to make the right choices in selecting bicycles and cycling gear, and with a selection of bicycles and cycling gear that has been carefully screened for high quality and functionality” is a clearly defined value proposition.

• Principle 1:  The clearer the value proposition, the more likely the business is to be successful.
  
  
• Corollary 1a:  A value proposition is not the same as corporate values; it is a clearly identified, fundamental principle that has value to the market.

Identifying Core (and Distinctive) Competencies
The value proposition should be well-supported by competencies or skill sets the business has.  To the extent that these competencies are unique, or that the company is particularly skilled in those areas, they create competitive advantage.  There are classic examples of companies that have developed distinctive competencies and used them very successfully:  Dell with supply chain and logistics excellence, Apple Computer with user-centric innovation, Proctor and Gamble with brand management.

In the multichannel merchant arena, the competencies can vary, but, in all cases, they must begin with merchandising and the product offering.  A catalog/web merchant must start with a well-targeted product offering that gives it identity.  In fact, there is no other competency that is more important.  In other words, merchandise is king.

There are many other competencies that enable direct businesses to develop competitive advantage.  Some provide exceptional customer service through their in-house product expertise; others do a fabulous job of marketing and presenting their products to the market.  When these skills are exceptional, they provide competitive advantage.

There are many competencies required just to participate in the direct marketing business.  For example:  being able to take orders through multiple channels in an efficient manner, being able to ship orders in a timely (read same-day shipping) manner, and being able to cost-effectively target advertising.  All of these skills are requirements, but all can be learned or outsourced.  Those skills don’t provide competitive advantage, but lacking them is competitively disadvantageous.  In fact, competitive advantage can be gained by a business that focuses on its distinctive competencies and doesn’t divert attention to activities that can be outsourced effectively.

• Principle 2:  A merchant business must have a strong core merchandising competency, but can learn or outsource many of the other necessary skills.

The Strategic Plan and Management Commitment
Identifying the value proposition, distinctive competencies, and other core competencies is the foundation of the strategic plan for a business.  Establishing a vision of where the enterprise ought to be in three years, supported by the value proposition, drives development of the strategic plan.  (I am a believer that three years is about the longest horizon we can plan for in business today.)  The plan should set goals and identify the major steps necessary to get there. 

A strategic plan crosses all departmental boundaries of a business.  This can present a challenge for some businesses, but is ultimately a benefit.  Going through a strategic planning process is a great way to build a team and gain consensus on objectives.  There are two extremes that challenge the consensus-building process.

The first challenge is a business with a very strong leader and a very passive management team.  It is too easy for the leader to set the business strategy, have management “agree” as they always do, but then have no buy-in or commitment.  Worse, management may disagree but managers simply verbalize their views, giving them a personal “out” if the plans are not executed (the “I didn’t believe in this anyway” excuse).  By far the worst outcome, however, is when the strategy is not challenged and refined by the team, and is sub-optimal as a result.

The other challenge is a business with very strong, independently thinking managers.  In this case, everyone has lots of ideas and shares them and the individual ownership of those ideas is so strong that it is hard for the leader to gain consensus.  The team may eventually be forced to “agree” to the plan, but will not own it collectively.

The solution is to go through a planning process that starts with a “green light” session that involves key management from all disciplines, where all of the ideas go on the table, and vetoes are withheld until later.  Then a process of review and challenge refine the plan.  Finally, the result is specific goals and action items that require accountability of each manager.

When successfully done, strategic planning results in bringing the management team onto the same page, with buy-in, with specific goals for each manager, and with mutual support for the process.  Ideally, there should be varied opinions on many aspects—but when everyone leaves the room, there is uniform commitment to the plan.  We often facilitate this process for clients.

• Principle 3:  A strategic plan is of no value if it is not first challenged, then developed, and finally committed to by the management team.

• Corollary 3a:  A brilliant strategy that is not embraced by management across all disciplines has a poor chance of success.

• Corollary 3b:  A good, but not necessarily brilliant, strategy that is embraced by management across all disciplines has a good chance of success.

Measuring Progress
The part of the strategic planning process that makes everything work is measuring progress and comparing it to the plan.  This is a critical step because it does two things:  it gives management feedback on how execution is going, and it provides feedback on how attainable the plan is and what refinements are needed.

Think of the planning process as a circle that begins with Planning, goes to Execution, Reporting of Results, and then Refinement of the Plan and Re-Allocation of Resources, all in a never-ending process.

I made the comment earlier that a three-year time horizon is about as long as one can strategically plan for in today’s business climate.  But even within three years, a strategic plan should be undergoing continual evaluation, with tactics being readjusted for changes in assumptions whether they are in the company’s skill sets and competencies, the market, or the competitive environment.

Measurement extends to the choice of metrics that are viewed on a daily, weekly, and monthly basis.  Of the hundreds of metrics that a direct marketing business can follow, the metrics that are used should:

1. Be actionable—metrics that cannot be acted upon are not useful.
   
   
2. Monitor the performance of core and distinctive competencies—these are critical to future performance and sustain competitive advantage.
   
   
3. Monitor the chain that supports the value proposition—this is the foundation of the business.  Each point in the value chain should be evaluated (see illustration).

We work with many clients to develop metrics that are useful for their particular situation.

• Principle 4:  Choosing the right metrics to monitor is key to successful execution of a strategic plan and to maintaining focus.

Conclusion
Ongoing strategic planning is important for a business and its management team.  It provides focus and helps the team move in a consistent direction.  It begins with a planning process, with identification of the value proposition and core competencies, includes team feedback and commitment, and is followed up with measurement and adaptation as results unfold.  As the saying goes, “If you fail to plan, you plan to fail.”

CASE STUDY
Understanding the Real Value of a Rental Prospecting List
By Michelle Farabaugh, Partner

Traditionally, rental prospecting results are reviewed based on the total performance of sales per book for each list, and we base subsequent mailing decisions on these results.  In actuality, further analysis should be conducted to determine the true strength of each particular list and whether it makes sense to rent that list going forward.

By breaking out the multi and unique names for each list in the merge, you can then code and mail them separately.  After performing a matchback to calculate book performance, further analysis can be performed on the individual outside lists to determine the make-up of the list.  In other words, what portion of each list were multis versus unique names.  Furthermore, what is the performance or value of the unique names?  This is the real question that will determine the true value of the prospecting list.

The value of a prospecting list results from incremental, unique names coming out of the merge that perform at an acceptable level.  If the overall list results are being driven only by the multi names and very few unique names are being generated, you do not need to rent that list going forward.

For example, you may have two lists that on the surface are equally profitable, but with further analysis you determine it is the high responsiveness of the multis that is driving the overall results. 

The chart below depicts two different lists with the same overall results of $.85 per book.  List A is comprised of 40% unique names that are performing at $.81 per book while List B is comprised of only 30% unique names performing at $.46 per book.  While both lists perform at the same level as a whole, List A is clearly stronger because it brings to the mailing more unique names which perform at a higher level than the unique names from List B.  In addition, if your mailing cutoff is $.65 per book, you should stop mailing the uniques entirely.  And if you can’t negotiate a net name arrangement, consider not renting this list at all going forward.

By better understanding the real value of each list, you are more equipped to make tough list decisions going forward, especially in weaker seasons when you aren’t able to rent as many names and create as many multis.

CIRCULATION TIP
By Michelle Houston, Vice President of Circulation and Client Services
Making a List and Checking It Twice!

That’s a good lesson to learn, especially when it comes to inkjet simulations.  Now, be honest with yourself—how careful are you when it comes to reviewing and checking the inkjet simulations your printer provides?  If you’re not careful, you might be surprised at the things you find!

Over the years, I have discovered a multitude of errors ranging from missing customer numbers to incorrect or missing source codes.  But the most outrageous error I came across was from one mailer who failed to review their inkjet simulations.  A couple weeks after the catalog was mailed out, angry (and amused) customers began to call in.  Evidently, all the regular customer names were somehow replaced with the new name, “Joe Schmo.”  Seriously!

Don’t let this or other inkjet horrors happen to your mail files.  The following is a quick checklist to hopefully avoid any damaging and/or embarrassing mistakes on your own mailing:

• Verify the customer numbers with your records on your system.
• Verify that the customer buyer history matches the assigned RFM source key.
• Make sure that the source key sequence matches the final approval provided from the merge facility.
• Make sure that customer names, addresses, city, state, and zip+4 are properly placed.
• Check that addresses have each line showing up, whether 3- or 4-line (or even 5-line for some B-to-B mailers).
• Make certain that address lines are not truncated, eliminating important delivery information such as apartment numbers or street suffixes.
• Check the inkjet messaging, if utilized, and make sure the message is appropriate for the mailing segment.
• Use your optional endorsements such as “Or Current Resident/Occupant” correctly.
• Make sure that you have not used “Address Correction Requested” on rental files.
• Spot check that old customer numbers have been removed and ‘Do not mail’ suppressions have been applied.

CREATIVE TIP
Color Your Catalog or Website “Successful”!
By Carol Worthington-Levy, Creative Partner

Color is one of the very essential elements on a catalog cover or spread.  Yet most designers who are doing catalog design work have never taken the kind of color theory classes needed to be able to use color as an effective tool.  Their failure to make the right decision could lose you sales!

To understand color, it’s essential to understand the physiology of the human eye.  The eye seeks contrast most of all.  That’s why some of the most popular infant toys have black and white checks and dots on them—this is the first thing we see as babies and it will continue to be what gets our attention all our lives.

Another issue with color and the human eye that is often overlooked is in how it affects legibility.  As the eyes get older, type in pastels and grays is impossible to read.

According to Colin Wheildon’s study, Type & Layout, are you Communicating or Just Making Pretty Shapes, setting type in any color but black automatically reduces its legibility. But lighter colors fared worst of all.

Specific colors can also be bad in other situations.  It’s interesting to note that at least 1 in every 10 men is partially colorblind, with that weakness leaning toward the red and green spectrum.  In fact, I’ve seen numbers as high as 1 in 4 men with this problem.  So this means that you should especially avoid setting type in colors when marketing to male or older markets.  It also means that if you are working with a male designer, you should be aware that they may not perceive color the same way as you do.

How do we put color into action in a catalog or on a website or html email?

1. Use solid contrast of color on your catalog covers and/or home page.  This holiday season I got two very red catalogs in my mailbox on the same day.  One was an automotive aftermarket catalog whose cover featured a red car on a red background.  In my quick glance through the catalog pile, it did not attract my attention.  The other catalog cover, by a food gifting catalog, was almost exactly the same saturated red color in the background, but the items on the cover were cupcakes with bright white tops, and these just popped right out and demanded attention.  Since the human eye seeks contrast, a red car on a stark white background would not only have been a more eye-catching catalog cover, it also would have been elegant.  There is nothing elegant about too much of one color.

2. Understand color phrases such as “hue,” “value,” and “complementary colors,” and how they affect the power of your photographic images.  A red background with a green of the same “value” (both the same level of darkness or strength) will provide no contrast, and it’s just about as bad as having red on red.  Green is the complement to red, and when it’s the same value—the same strength or darkness—they “bounce” against each other but they don’t contrast at all.
   
   If you have leaf-green dishes, a nice complementary color background that could make them really stand out might be a pink surface.  But red dishes on pink would be flat because although the two values of the red (pink being a lighter version of red) would be different, the color would be too much in the same color family.
   
   Other phrases to learn and apply are “warm” versus “cool” colors, and “pure hue” (very clean color) versus “tones” and “shades” which are colors that are neutralized and therefore not as clean.  You can make a product look great if you use the right combination—or make it look dead by using the wrong one.
   
   Understanding these phrases will not be enough, though—you will need to teach those in your creative department how to make these theories work in practice, so you can communicate these ideas to them.

3. Watch how you light your photography.  Flat light dulls color and creates a lack of contrast. While some of this can be corrected in Photoshop, using a photographer who is skilled in lighting will save you a lot of money and give you more usable shots that will catch the viewer’s eye and imagination.  And keep in mind, a gray seamless in your photographer’s studio is a sure sign that you should run as quickly as possible, from that photographer, and find one who understands contrast as well as good lighting.

multichannel TIP
By Todd Miller, Director of Circulation, Business-to-Business Markets

Traditional catalog-oriented direct marketers have always been suspect of customers acquired via the internet.  “They are not loyal,” some reasoned.  “It takes a promotion to acquire them, and it takes further promotion to keep them,” others said.  Simply put, marketing managers agree that web-originating buyers are “distinctly different” from those acquired through more traditional sources.

Well, we can pat ourselves on the back, right?  The data shows that customers acquired via the internet generally have equivalent acquisition costs, but lower average order values and, more importantly, lower lifetime value.

But, are ALL web-generated customers the same?   LENSER recommends initiating the following multichannel marketing strategies before assuming that all internet customers are of lower value:

1. Differentiate those customers acquired via “branded” search vs. “non-branded” search.  Those customers who come to your site as a result of a brand-specific search have much higher matchback-to-catalog-mailing rates.  Also, results analyses show that true new-to-file buyers whose initial purchase can be credited to a search on your company name or brand have average order values and subsequent lifetime values as high as those customers acquired through more traditional prospecting sources (excluding catalog requester programs).

2. Isolate web-originated customers who do not match back to catalog mail tapes.  More often than not, it is this group of customers who have significantly lower average order values and, subsequently, lower lifetime values.  Once you complete a matchback, have your service bureau flag those customers who did not match to catalog mailings.  Retain this flag on your customer database, and reduce your expectations for future ROI accordingly.
   
   
3. The more esoteric or specific the term, the higher the customer value.  Take a company that sells guitars and other stringed instruments:  the term “guitar” might garner significantly more hits to your website than, say, “dell’arte selmer pigalle gypsy guitar.”  However, the conversion (i.e. hits to orders) rates for the more esoteric or specific term are likely to be much higher than the general term “guitar.”

CLIENT FOCUS—ACTION BAG

It all started with an entrepreneurial woman, a reclosable bag, and a dream!  In 1980, Marie Gebbe started Action Bag Company with one product line—reclosable bags.  Being a practical woman and a keen marketer, she understood the many applications for this product.  From there, both her loyal customer base and product line grew.

In 1982, her daughter Nancy joined forces with Marie and together they forged into new markets and further expanded their product line to include shopping bags, cloth bags, retail bags, garbage bags, and custom printed bags.

In 1995, Marie retired and Nancy took the helm to lead Action Bag to be the industry experts in retail packaging and promotion with special focus on the beauty and spa industry.  Through market savvy and diligent response to customer feedback, the Action Bag product line has grown to include many specialty bags and promotional items now integral in salons and spas across the country.

Although new product development continues to be a core strategy for the company, two years ago Nancy decided to seek help on the catalog circulation side of the business and called LENSER.

“I thought I was just hiring a circulation company, and it turned out to be a lot more,” says CEO and owner Nancy Cwynar, who laughingly calls herself the LENSER poster child after working with both the consulting/circulation team and doing a complete catalog makeover with LENSER partner and creative guru, Carol Worthington-Levy.

“After 25 years in business, LENSER gave us the expertise to grow beyond a small, entrepreneurial company.  Their knowledge of direct marketing and operations has been valuable as we grow and require better systems and measurements.  Through their affiliate program we have had access to the leading providers in the business.  The LENSER team has been a true ‘partner’ and essential to our growth and success.”

PARTNER SPOTLIGHT—BILL NICOLAI

Bill Nicolai and John Lenser’s business and personal relationship spans decades, so when it came time to add a strategic partner to LENSER, John never hesitated in asking Bill Nicolai to be his first partner.  Notes John, “Bill Nicolai is an entrepreneur, theorist, strategist, and grand tactician extraordinaire.  His forethought and insightful advice has allowed LENSER to grow at an immense rate.”  And the feeling is mutual as Bill adds, “When John asked me to join up with him, it did not occur to me to say no.  I was honored to be able to contribute my knowledge accumulated in my years of experience in this Industry.”

What an accumulated history it is!  In 1972 Bill founded Early Winters, an outdoor equipment manufacturer and catalog retailer.  Through innovative research and product development, the company grew rapidly.  Implementation of the company's ground-breaking marketing plans led it to be proclaimed first Catalog of the Year in 1981 by noted catalog guru Dick Hodgson.  After selling Early Winters to Orvis Company, Bill continued his entrepreneurial spirit by co-founding Orchids Only, then selling it and co-founding the Good Catalog Company in 1992.  After growing Good Co. to over $25 million in annual sales, the company was sold to Reader's Digest in 1999.

Today Bill continues to add a wealth of advice to LENSER clients.  He proudly notes, “We are the largest set of accumulated multichannel marketing knowledge in the land.  With all we are learning every day from managing the marketing efforts of over 60 retained clients, we are gaining key marketing insights faster than any competitor could possibly match.  Our business model of looking after the whole marketing needs of our clients, not just their catalog creative or circulation or data needs, intrinsically assures that we will stay the leading company.”

AFFILIATE FOCUS—CREATIVE MERCHANDISING SOLUTIONS

“Desirable merchandise is the foundation of all mail-order businesses.  And nobody is more important to the success of a mail-order company than its merchandiser.”  —catalog icon Lillian Vernon

Merchandising is undoubtedly the main driver of most successful catalog companies.  Although often the founder of a catalog/web direct selling company—the entrepreneur—is the first merchant, more help is needed as a company grows.  Just as companies seek expertise in circulation, operations and creative, many need extra help and expertise in this all too critical area of their business and do not know where to turn.

Great merchandising is not just about having the “eye for picking winners”—it is also about supply chain success—being able to successfully and economically supply the merchandise that you have created the demand for and thus generate profit.

Founded by award-winning merchant Jackie Daigle, Creative Merchandising Solutions works with catalogs and multichannel merchants to create a structure for your merchandising options through strategic planning, training, and implementation of best practices within our industry.

From concept mapping, assortment planning, sourcing new products, and negotiating with vendors through category analysis and ROI metrics, Jackie Daigle can help start-ups who may not have an experienced buyer on staff, as well as lend expertise to established companies who may be at capacity or whose staff may need extra polishing and additional training.

To achieve great results in sales, margins, and inventory levels, companies need to not only pick winning product, but successfully integrate the merchandise supply chain across the entire company.  We feel that LENSER affiliate Jackie Daigle and her company, Creative Merchandising Solutions, can help you achieve a higher level of success.

NEWS BRIEF

• LENSER welcomes Johnny’s Selected Seeds, VWR Education and Eastwood to our family of clients.

• LENSER is proud to announce the recent partner addition of Mitch Siegler.  Mitch founded and served as CEO of three catalog/e-commerce businesses—Siegler & Co., Treasures From a Bygone Era, and Sovietski Collection.  He has extensive experience in all disciplines of a small catalog company, both at a strategic level and in a hands-on capacity.  He also spent five years as a partner with a boutique investment banking/venture capital firm, where he concluded more than 30 mergers, acquisitions, and financings and headed the firm's consumer/specialty retail practice.  Please visit his bio for more information.

• As we continue to grow, we continue to uncover top-of-field circulation managers.  This month we introduce and welcome Jim Whitford as our newest Circulation and Marketing Manager.  Jim brings with him many years of business-to-business experience, most recently coming from Quartermaster.  He will be working in our ever-growing business-to-business department specializing in B-to-B and hybrid accounts.  Welcome, Jim!

• Mark your calendar now!  Next year’s LENSER Client Summit is scheduled for Wednesday through Friday, October 3-5, 2007 at the Embassy Suites in San Rafael, CA.  Make plans now to stay over the weekend in the beautiful San Francisco Bay Area.  October is one of our best weather months and should be just the right time to catch the harvest crush in the Napa-Sonoma-Mendocino wine region just to our north.

• Over the past few years, news of the death of the catalog industry has been, and continues to be, greatly exaggerated.  A recent article in Business Week indicates that catalogs still occupy the central position in multichannel marketing.  The key fact is that catalogs are a net donor of sales to both internet and store retailing.  This is at the heart of why catalog circulation is up so strongly in the last few years, despite the superior growth rates of web sales.  To read this article, please click here.
  
  
• Chicago in January?  It might be cold outside but there is plenty of friendly warmth and lots of hot topics discussed at the Mailorder Gardening Association 2007 Winter Convention Jan 17-19 at the Swissotel in Chicago.  The MGA Conference is ‘information mecca’ for gardening direct marketers and suppliers.  The MGA hosts a fabulous convention and educational program.  This year includes Geoff Wolf and Michelle Houston, LENSER, presenting “Creating an Annual Contact Plan in a multichannel World.”  For more information on the MGA Winter Convention as well as the benefits of MGA membership, go to www.mailordergardening.com and if you plan on attending, be sure to let us know!