catalogue circulation planning finance
Download
Skip this Video
Download Presentation
Catalogue Circulation Planning & Finance

Loading in 2 Seconds...

play fullscreen
1 / 14

Catalogue Circulation Planning & Finance - PowerPoint PPT Presentation


  • 79 Views
  • Uploaded on

Catalogue Circulation Planning & Finance. Ray Morris-Hill Ray Morris-Hill Associates. How do we plan a circulation?. Start with your database Maximise the profitable mailings to house file Determine the available recruitment activity and the likely costs of recruiting buyers

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Catalogue Circulation Planning & Finance' - hamilton


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
catalogue circulation planning finance

Catalogue Circulation Planning & Finance

Ray Morris-Hill

Ray Morris-Hill Associates

how do we plan a circulation
How do we plan a circulation?
  • Start with your database
  • Maximise the profitable mailings to house file
  • Determine the available recruitment activity and the likely costs of recruiting buyers
  • Mail prospects to the point of acceptable cost per buyer

Ray Morris-Hill Associates

simple database segmentation
Simple Database Segmentation
  • Buyers versus Enquirers
  • Recency: 0-6 months, 7-12 months, 13-18 months etc
  • Frequency: 1, 2, 3+
  • Monetary: 0-£50, £50-£100, £100+

Ray Morris-Hill Associates

database example buyers
Database Example - Buyers

Ray Morris-Hill Associates

buyer circulation example
Buyer Circulation - Example
  • Mail all our buyers in first drop - 22,732
  • Remail all buyers in second drop - 22,732
  • Remail best buyers in third drop - 10,000
  • Mail hot line buyers in drops 2 and 3 - TBD
  • We expect all these buyer mailings to be profitable

Ray Morris-Hill Associates

database example enquirers
Database Example - Enquirers
  • 0-6 month enquirers – 6,523
  • 7-12 month enquirers – 4,542
  • 13-18 month enquirers – 3,754

Ray Morris-Hill Associates

enquirer circulation example
Enquirer Circulation - Example
  • Mail all Enquirers in Drop 1 - 14,819
  • Mail 0-6 month Enquirers in Drop 2 - 6,523
  • We expect all these enquirer mailings to be profitable

Ray Morris-Hill Associates

prospect circulation
Prospect Circulation
  • Only time to consider lists here
  • Rank list history by the profit or loss of acquiring a new buyer
  • Determine cut-off point by pay back criteria
  • Maximise roll-out to successful lists remembering statistical variation in results

Ray Morris-Hill Associates

payback criteria
Payback Criteria
  • What is an acceptable cost of acquiring a buyer?
  • Depends on propensity to buy again and the profit from those future orders
  • If I recruit 1,000 new buyers today and mail them my catalogue programme, how much profit will I make over the next 6 months?

Ray Morris-Hill Associates

sample answer to payback question assuming 3 mailings in next 6 months
Sample Answer to Payback Question assuming 3 mailings in next 6 months

Mail Spring Catalogue Drop 1 1000 @ £15.00/book Demand £15,000

Profit £5,000

Catalogue Costs (£500)

Net Profit £4,500

Mail Spring Catalogue Drop 2 1000 @ £9.00/book Demand £9,000

Profit £3,000

Catalogue Costs (£500)

Net Profit £2,500

Mail Spring Catalogue Drop 3 1000 @ £4.50/book Demand £4,500

Profit £1,500

Catalogue Costs (£500)

Net Profit £1,000

Total Profit in next 6 months from 1,000 buyers is £8,000 - £8 per buyer

If it cost more than £8 per buyer to recruit, payback will be longer than 6 months

Ray Morris-Hill Associates

prospect circulation example
Prospect Circulation Example

Ray Morris-Hill Associates

summary
Summary
  • Start with your own database
  • Maximise profitable buyer mailings
  • Maximise profitable/acceptable enquirer mailings
  • Evaluate acceptable loss per new buyer
  • Rank lists by profit/loss of acquiring a new buyer
  • Mail prospects down to acceptable loss

Ray Morris-Hill Associates

further information
Further Information

Ray Morris-Hill

3 Bickley Court

12 Southlands Grove

Bickley Kent BR1 2BZ

Telephone/Fax: 020 8464 2545

Email [email protected]

Ray Morris-Hill Associates

ad