Deconstructing Mail Order

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Further thoughts about how the web is deconstructing the old way of conceiving mail order advertising. Copy, picture and technical data are split up and have to singularly suffice as offer. Cooperations foster disruptive marketing concepts, as customers no longer have a coherent sales environment as in mail order catalogs.

transcript

Deconstructing Mail-Order:Old Habits, New Technologies and

Innovative Approaches in Distance Selling

Martin Gross-Albenhausen

Chefredakteur „Der Versandhausberater“

Donnerstag, 9. April 2009

Mail-Order 2009

2

Donnerstag, 9. April 2009

Mail-Order 2009

3

0

20

40

60

8078,6

73,1

66,4

62,1

56,442,9 46,0

59,6

54,0

63,5

20052006

20072008

2009

Order Channels (in %)

via Catalog via Internet

Donnerstag, 9. April 2009

Mail-Order 2009

4

0

23

45

68

90

69,4

61,5

55,6

47,147,6

68,8 70,0

83,3

78,0

85,0

20052006

20072008

2009

Ages 14-29 (in %)

via Catalog via Internet

Donnerstag, 9. April 2009

Mail-Order 2009

5

0%

23%

45%

68%

90%

0,3170,435

0,5040,387

2005

2006

Multichannel

% of all Catalog-Buyers who also shopped by Web% of all Internet-Buyer who also shopped by Catalog

Donnerstag, 9. April 2009

Challenges

• Decay of Catalogs?

• Disruptive Channels

• New Approaches - old CPIs

• New Competitors - new Partners

• New Marketplaces - new rules for picture/

text composition

• New Dialogues - „Indirect Marketing“

6

Donnerstag, 9. April 2009

Decay of Catalogs

• Privacy legislation might hinder the

traditional listbroking and thus

• enforce the Channel-Shift towards the

Internet.

• Catalogs will follow the web, no longer lead

• Not all customers are channel-agnostic

• Matchbacking of sales is necessary in order

to uncover the hidden „response“.7

Donnerstag, 9. April 2009

More channels

more chances

8

Catalog

Stores

...

Market-

Places

TV

Direct

MailMedia

Telephone

e-MailClubs Online-

Shop

RSSSocial

Networks

Live-Shopping

SEM

Affiliates

Donnerstag, 9. April 2009

Patchwork rather than

„fil-a-fil“?

9

Catalog

Stores

...

Market-

Places

TV

Direct

MailMedia

Telephonee-MailClubsOnline-

Shop

RSSSocial

Networks

Live-Shopping

SEM

Affiliates

Donnerstag, 9. April 2009

„Reality sucks“

10

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Catalog (classic)

Donnerstag, 9. April 2009

Catalog (classic)

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Catalog (classic)

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Catalog (classic)

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Catalog (modern)

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Catalog (modern)

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Catalog (modern)

Donnerstag, 9. April 2009

Catalog (modern)

13

Donnerstag, 9. April 2009

Catalog (modern)

13

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Catalog (modern)

13

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Catalog (modern)

13

Donnerstag, 9. April 2009

Catalog (modern)

13

Donnerstag, 9. April 2009

Catalog (modern)

13

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Catalog (modern)

13

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Catalog (modern)

14

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Catalog (modern)

14

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Catalog (modern)

14

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Catalog (modern)

14

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Catalog (modern)

14

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Process Re-engineering

15

Copy Picturetech. Data

Catalogs ShopMedia

Donnerstag, 9. April 2009

Process Re-engineering

16

Copy Picturetech. Data

GoogleComparison-

Shopping,

MarketplacesCommunities

Donnerstag, 9. April 2009

Process Re-engineering

• Catalogs and search engines treat

information differently

• A Catalog-Teaser is not a Google-Snippet

• A Hero-Shot not always works for fashion-

blogs

• Each part of the solicitation must convey

the whole message17

Donnerstag, 9. April 2009

Brands go direct

18

Donnerstag, 9. April 2009

Brands go direct

18

Donnerstag, 9. April 2009

Brands go direct

18

Donnerstag, 9. April 2009

Brands go direct

18

Donnerstag, 9. April 2009

Brands go direct

19

Donnerstag, 9. April 2009

Brands go direct

20

Donnerstag, 9. April 2009

Brands go direct

20

Donnerstag, 9. April 2009

Brands go direct

20

Donnerstag, 9. April 2009

Brands go direct

20

Donnerstag, 9. April 2009

Brands go direct

20

Donnerstag, 9. April 2009

Brands go direct

20

Donnerstag, 9. April 2009

Brands go direct

20

Donnerstag, 9. April 2009

Brands go direct

• Shared responsibilities

– who directs the CI?

– who directs copy?

– who leads on marketplaces?

– who is to consent in advertising?

– who is proofreading?

– who takes the blame?

– ... in neckermann.de‘s Big Book ???

21

Donnerstag, 9. April 2009

„Open“ data

22

Donnerstag, 9. April 2009

Marketplaces

• photography has to be neutral

• who‘s copy prevails on marketplaces?

• Cross-/Upselling: A larger shopping basket

not necessarily means more lines for the

individual merchant. Profitability?

• Who‘s is the customer (legally)?

• Who does he stick to (emotionally)?

23

Donnerstag, 9. April 2009

(Micro)blogging

24

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(Micro)blogging

24

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(Micro)blogging

24

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Branded Entertainment

25

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Branded Entertainment

25

Donnerstag, 9. April 2009

Branded Entertainment

25

Donnerstag, 9. April 2009

Mail Order 2009

Mail Order 1.0 Mail Order 2.0Copywriter Editor

Mailings Blogs

TV-Spot YouTube

Response-Ad GoogleAd

Sweepstake Auction

Personalization (Mass-)Customization

Free Gift Beta

Special Offer Woot

Club Private-Shopping

Target Group Community

Donnerstag, 9. April 2009

Modelle

Versandhandel 1.0 Versandhandel 2.0Lean Back Lean Forward

Hard-Selling Soft-Selling, Sell-a-tainment

Action Reaction Interaction

Direct Marketing, „last click“ Indirect Marketing, „Attribution“

Donnerstag, 9. April 2009

Customer Engagement

Catalogs

Teleshopping

Web 1.0

Personalization,

Collaboration,

Recommendation

Ratings/Reviews,

MassCustomization,

Woot & Co.

Social

Commerce,

Social Media

74 %

16 %

7 %

3 %

Kelly Mooney, The O.P.E.N. Brand

Donnerstag, 9. April 2009

Challenges

• It takes longer to open his/her wallet

• New concepts of sales promotion

• Advertising needs to be more flexible than

ever.

• „Engagement Marketing“: Don‘t pitch the

customer - entice her!

• Cooperations foster disruption

29

Donnerstag, 9. April 2009

Thank you for your attention!

Questions, comments?

Anything else? – Call me!

Tel: +49-228-688 39 48

Fax: +49-228-35 44 72

E-Mail: gro@vnr.de

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Donnerstag, 9. April 2009