Print catalogs have advantages over other marketing tools in creating product awareness, acquiring customers and building brand loyalty. For many retailers, this gives catalogs a key function in multichannel marketing efforts, building interest and engagement among consumers and helping funnel them closer to a purchase—in any channel.
“More than ever, consumers are shopping the catalog and buying online,” said Jeffrey Grau, eMarketer senior analyst and author of the new report, “The Role of Catalogs in the Multichannel Model.” “However, a minority of consumers prefer to shop the catalog and order by phone because they either feel uncomfortable buying online or need hand-holding to complete a major purchase.”
But the high costs of creating and mailing print catalogs means their return on investment is relatively low. According to the Direct Marketing Association (DMA), catalog sales add up to $7.34 for each dollar spent, much lower than the return on digital marketing media such as commercial e-mail, search or display ads.
Despite their high costs, though, catalogs provide important marketing benefits. Rich photographs, aspirational copy and a tangible presence in the home encourage purchases, and consumers who receive catalogs have higher brand awareness and mindshare than average. Catalogs also tend to provide better-qualified leads to channels such as the retailer’s e-commerce site.
“The paper catalog is a means of acquiring new and higher-value customers.”
—Scott Drayer, director of marketing, Paul Fredrick, an apparel retailer, in an interview with eMarketer, February 2010
“No simple formula exists for determining the catalog’s right place in a retailer’s marketing mix,” said Mr. Grau. “Traditional catalogers are redressing a channel imbalance by focusing more on their faster-growing e-commerce channel. Meanwhile, some Web-only and store-based retailers are adding or expanding a catalog business as a way to broaden their customer base and deepen their relationship with existing customers.”
In either case, retailers must think about what purpose they want their catalog to serve. They must not base their decision on how they think customers “ought” to use their channels to shop.
The full report, “The Role of Catalogs in the Multichannel Model,” also answers these key questions:
- What advantages do catalogs have over other marketing media?
- How do consumer demographics shape catalog usage?
- What challenges do catalog retailers face?
- What are the catalog trends to watch?