Classic Car Parts Marketing

Ken Magill’s article in the May 10 Multichannel Merchant reminds us that it’s not wise to mail your entire list every time you do an email blast. This is an area where email consultants often have to fight with clients who feel that it’s simply wasting money not to mail everyone (given the almost-free nature of email). Marketers have the gut instinct that anyone might purchase from the very next email?

Here’s the rationale for holding back:

Many of the most popular internet service providers (such as AOL, Yahoo! and MSN) base their spam-fighting efforts largely on consumer complaints. Sending mail to “older” email addresses, especially of disinterested people, can result in an increase in complaints. The ISP will divert your mail into recipients’ spam folders, or even block it. And ISPs can use abandoned email addresses as spam traps. If you mail old addresses, you risk your ability to deliver any mail to a given ISP’s customers. Keep in mind that email addresses turn over rapidly – roughly a third each year, according to some sources. Someone who hasn’t responded in 24 months may be dangerous to mail.

If you market parts for a particular range of cars or motorcycles, there’s obviously an issue with vehicle turnover, too (no, I don’t mean from crashes!).

There’s no way to know how much of your mail actually reaches the subscriber, after bounces and spam blacklists have their way with it. Best to play it safe … the experts recommend segmenting your email list carefully, and eliminating those who show no signs of interest.

Technorati Tags: email deliverability, spam, list hygiene, ken magill

Decoding a pre-1981 vehicle identification number used to require some digging. I’ve just learned that the folks over at DecodeThis have been building a cool ”universal” VIN decoder. It’s not quite universal yet; at this writing, their program covers most domestic cars from 1960-1973 (especially musclecars). They’re continually adding new “patterns,” and they asked me to check back in a few months if my car wasn’t there. Try it out for yourself:

If you’re squeamish about entering the “serial number” portion, you can substitute Xs.

Of course, there are websites that specialize in VIN identification for a given range of car…here’s a sampling: Camaro, Corvair, Corvette, Firebird, Mustang, Triumph Spitfire, and Volkswagen. And there are a couple more classic VIN sites that are somewhat general in nature, here and here. (Note: if you’ve reached this permalink from sometime in the future, some of the links may be obsolete.)

Technorati Tags: vehicle identification number, vin decoder, classic car

May 14 will be a dark day for US catalogers; that’s when the industry gets hit with the largest postal rate increases in recent history. What can you do about it?

I wrote a piece on this subject a couple of months ago, but it was for a more “conventional” catalog audience and some of the actionable items won’t apply to typical automotive parts catalogs. Here’s why: conventional catalogs (think LL Bean or J Crew) rely heavily on rented prospect lists for their customer acquisition efforts, and this doubles the circulation of many of their mailings. The “yield” from those mailings is very low, with response rates generally down near 1% and sales per catalog of only $.80 - $1.40 or so. The result is that catalog costs for these “typical” catalogs can run as high as 25 - 35% of sales.

On the other hand, classic car parts catalogers typically mail only to existing customers and catalog requesters — and catalog costs may be as low as 5-10% of sales. If you’re in this category, count your lucky stars; the bottom-line impact of the postage increase will be much lower for you. And if you use a heavy, 100+ page book, you won’t see as much increase (in %) as those with catalogs under 3.3 ounces. (Unfortunately, however, the increased discounts being offered to large volume mailers won’t be of much use for those with circulations under 100,000 or 200,000 per drop.)

It’s not hard to find experts who recommend that catalogers switch some or all of their mailings to a narrower trim size, often called “Slim Jim” in the printing industry. These books usually measure 6″ x 10.5″ and, to meet the letter-rate requirements that spawned them, must be “tabbed” shut with two adhesive wafers.

Under the current (pre-May 14) rates, a 3.3 oz. tabbed Slim Jim catalog costs 25 - 30% less to mail than the same weight catalog in a traditional size, which the USPS puts in the Flats category.

After the May 14 increases, that same, tabbed Slim Jim’s postage will be cheaper by 35-45% (there’s a range because of variations in sortation and destination delivery). That’s what’s getting everyone’s attention!

But … how much would you damage response rates by changing your mailing format (thus tampering with your “brand”)? How much would you hurt sales by “daring” someone to open a catalog sealed shut with adhesive wafers? Some products “fit” the format better than others. Since so many catalogers are rushing to the tabbed Slim Jim format (the printing industry is working overtime to have the equipment in place), these questions will be answered in the next six to nine months.

Meanwhile, instinct tells me that Slim Jim response rates will usually be lower … and order curves will be shorter because these catalogs seem like “throwaway” pieces.

technorati tags: letter-size catalogs, postage increase, Slim-Jim, catalog cost, response rates

Technorati Tags: catalogs, slim jim, letter rate, postage increase

I enjoy looking beyond the automotive world for ideas, and would like to submit one here:

Stew-Mac set themselves a very aggressive goal. Though they’re not a large company, they decided to produce a helpful, fact-and-tip-filled email every week. I’m completely amazed by their ability to come up with great email ideas, week after week (this pace may be too aggressive). It helps that they have a strong creative team that’s accustomed to developing “how-to” guides.

Though I don’t repair musical instruments myself, I continue to subscribe to their emails just for the inspiration. Check it out if you have a moment; what you’ll find is a thoughtful blend of information along with Stew-Mac’s solutions to the problem or issue under discussion. Just as in our automotive/motorcycle world, the product solutions usually consist of replacement/restoration parts and tools.

These emails go beyond merely selling products, and even beyond helping customers. They’re branding pieces, setting Stew-Mac up as the friendly, go-to experts in the products they sell. I bet the company will reap the rewards for a long time to come.

technorati tags: automotive catalogs , emails, email marketing, Stewart-MacDonald, luthiers

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A little introduction is in order.

I am a direct marketer — and have been one since December, 1977. I started with a food gifts catalog, moved to a large general-merchandise direct mail company, then to Crutchfield (a consumer electronics catalog and internet retailer), and for the past ten years, an automobile parts and accessories catalog and internet marketer.

More recently, I founded The Mark Lee Group, which offers marketing consulting services to catalog and internet retailers.

My MBA concentrated in Finance (Northwestern University), but I quickly moved into the catalog world and fell in love with marketing.

Where Are the Auto Parts Companies?

As a catalog (and later internet) marketing practitioner these 29 years, I have read direct marketing books and trade journals, attended seminars and conferences and worked with a dozen or so specialized consultants — all the while scarcely encountering a soul from the world of auto parts marketing. This amazes me! When I purchase something for myself from a catalog or website, it’s most often parts or accessories for a project vehicle (a car or motorcycle). There are hundreds of wonderful firms out there. But, how and where do these companies learn what the rest of the direct marketing world is doing?

Then it occurred to me: most auto parts retailers don’t really consider themselves marketers. They tend to be product-oriented, reading and visiting trade shows that relate to the products – and vehicles — they cover. In doing so, they develop a deep understanding of the needs of the customers they serve. If you’re a parts marketer, your business was likely an outgrowth of a personal hobby. While this is a great background, there are direct marketing techniques (often from other product categories) that can help your firm grow and earn more profits.

The purpose of this blog, therefore, is to tie my two favorite worlds together … to distill and deliver the latest and most useful art and science of direct marketing into the hands of my friends in the world of classic car and motorcycle parts retail.

technorati tags: Mark Lee , classic motorcycle parts , catalog marketing, classic car parts, The Mark Lee Group

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