Industry Eye : Prospecting - Paul Fredrick, GreatSkin, Zappos
July 2009 By Paul Miller, Joe Keenan & Melissa Campanelli
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Response to magazine space ads has never been as strong or reliable as more traditional direct marketing tactics, such as bulk catalog mailings. But men’s apparel marketer Paul Fredrick MenStyle has made a steady commitment to space ads since the early 2000s because it found a way.
“It’s a long-term strategic commitment,” says Executive Vice President and COO Allen Abbott. The company, which is spending considerably more on space ads during the second half of this year, typically takes out one-third-page ads in men’s magazines.
Paul Fredrick has tested single-product and multiple-product offers. The ads usually list its Web site. “Print is highly scalable,” Abbott says. “We now acquire more new customers through print than through any other channel.”
Although it constantly tests different ads, Paul Fredrick has stuck with a $19.95 Oxford shirt. “We’ve taken a little hit on the front-end acquisition,” Abbott says, referring to the shirt’s low price, “but have seen better lifetime value as a result.” —Paul Miller
GreatSkin’s Unique Affiliate Program Delivers Prospects
Skin care products retailer GreatSkin uses an expansive affiliate marketing program to locate potential customers in a highly competitive market. With more than 25,000 affiliates signed on, the immense size of the program yields its fair share of “junk traffic.” But the value mixed in with that junk has made GreatSkin’s program profitable for prospecting.
Sales attributed to the LinkShare-managed affiliate program are up nearly 40 percent this year. Earnings per click and average order values continue to climb.
“We err on the side of letting more affiliates in,” says William Hamson-Wong, GreatSkin’s affiliate program manager. “If they don’t perform, we still get some opportunity to expand our brand.”
GreatSkin affiliates receive commissions starting at 8 percent based on the lifetime values of customers they gain. Commission payments never reset to zero after the initial purchase and max at 18 percent of lifetime sales. —Joe Keenan
Zappos Turns to Magalogs for Leads
How do you acquire more leads when a sizable portion of U.S. online shoppers are already customers? In April, high profile online shoe and clothing retailer Zappos targeted offline prospects by mailing a glossy, four-color magalog called Zappos Life.
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