Beginning,And,Start,Of,The,New,Year,2023.,Preparation,For

2022: A Year in Review…

by DataDigital MarketingMarketing StrategyMarketing TrendsNewsOffline StrategyUSPS

Here’s what we think: 2022 was anything but 2020-Too. If you caught our post last December, we were cautiously optimistic about this year. Bricks-and-mortar continued to hold their own, marketers weathered the storm of privacy concerns and iOS updates and navigated more media channels than ever before.

When we look back at 2022, there are some key trends that come to mind… and get us excited for 2023! Let’s review:

  • Paper Is on Its Way Back!

In July, we reported that paper supply remained tight, and prices were continuing to climb due to steady demand, reduced capacity, and high input costs. Today, demand is softening somewhat, prices are holding steady, and paper is generally becoming more available. Whereas most paper mills have been on allocation or even moratorium, these supply restrictions are easing and the global paper shortage that we have been experiencing is abating. 

That said, so much capacity has come out of the market in the past decade that pricing is expected to remain at elevated levels, especially if demand stays steady in the first half of 2023. Graphic paper supply will continue to decrease in the coming years as mills continue to diversify their product mix. Several mill conversion announcements have already been made that will significantly impact supply going forward. Aligning with strategic suppliers will be paramount for end-user customers.

As direct marketers, we believe in the power of offline media. In fact, marketers have combatted paper challenges with increased use of direct mail, clever interplay between offline and online efforts, innovation with page count and circulation, and more. We’re excited to see where offline media goes in 2023.

  • Shifting Consumer Behavior

While we haven’t been surprised by many trends that have soared in popularity in 2022 – the power of personalization, volume of online shopping and an interest in sustainability – there is inarguably power in consumer behavior. In many cases, changed interests and values have resulted in brands shifting their retail strategy and product innovation.

However, what has also resulted in brands’ shifting strategies? Inflation. “Inflation has driven up the cost of all goods by 8.2% between September 2021- September 2022,” according to the Bureau of Labor Statistics (source: Nerd Wallet). It’s important to note that inflation has affected some categories more than others, such as food versus clothing prices. Will there be any relief in 2023? Will supply chain issues resurface? We’ll all have to stay tuned.

  • Data Is Everything

At Media Horizons, our “secret” is placing emphasis on intensive data and analytics to grow our clients’ businesses. Today, online to offline attribution is a major pain point for many companies. That said, without a quality attribution model, upper funnel media has been intensely impacted. Check out more reasons why data (and attribution) are everything!

  • The Future of Paid Social

In 2022, Facebook and Instagram targeting saw a greater impact from Apple’s privacy restrictions that went into place in 2021. Advertisers have had to experiment with a variety of targeting tactics, including broader targeting and more tightly targeted ad copy.  

Audience targeting challenges will continue into 2023, but Facebook and Instagram’s automated targeting has been yielding success in the absence of audience targets that have been removed.

We recommend that advertisers test newer Paid Social platforms like TikTok and BeReal. to see what kind of traction they can get, and diversify their ad formats, such as expanding to Instagram Reels.

  • Postage Updates on the Horizon

In 2021, the industry saw two significant postal changes resulting in double-digit increases for catalogs (Marketing Mail flats) and near double-digit increases for Direct Mail (Marketing Mail letters). In case you didn’t catch the exact percentages, get familiar with them here. The USPS has recently announced their next increase, which will take place in January.

There’s never been a better time to be strategic about your direct mail strategy. Consider changing to a different format – encourage creative thinking with your vendors – and add innovation to your strategy accordingly. Stay tuned for our next “Tom Says…” in which we’ll share everything that you need to know about the USPS updates.

When we look back at trends from this year and ahead to 2023, there is one key theme that comes to mind: omnichannel. The value of an omnichannel strategy is unmatched. If your media mix does not include both online and offline channels (that are working together!), your brand is not as strong as it could be. Be the change and future-proof your business. Connect with us in 2023 to propel your business forward.

 

Cartoon-Person-at-Computers_re-scaled

Tom Says… Here’s What You Need to Know About the USPS Today Part II

by Direct MailMarketing StrategyNewsUSPS

We’re excited to share Part II of our conversation with Tom VanWestrienen of Eliezer Consulting. In follow up to last week’s conversation, we wanted Tom’s perspective on how to handle these USPS updates. For example, are there any opportunities that these changes could present? How can brands adjust to these changes in a positive way? Here’s Tom’s take:

Q: Since it will affect the above formats, how can brands prepare / update their DM strategies accordingly?

Consider changing to a different format. Updating the physical make-up of a piece can move it to another, less expensive rate class. At this juncture, creative thinking while partnering with your vendors on strategy would provide the best overall outcome (we’re talking response rate and cost-efficiency!).

Q: What are some other opportunities that these increases present?

Are you fully utilizing opportunities offered by your printer? Processes such as co-mail or co-bind can reduce postage by improving sortation levels and increasing discounts. Additionally, the USPS offers several promotional discounts which can reduce postage by 2-4%/piece (See 2022 promotional calendar here). The USPS is also continuing the promotional discounts in 2023 with discounts up to 5%.

Q: What are some tips for preparing for the all-important holiday season?

Make sure that every customer is using cooperative mailing programs to minimize postage costs. Co-mailing for flats & periodicals and commingling for letters are cooperative mailing programs that should be used whenever possible. Also, the USPS offers mailing incentives that are too good to pass up. Today, the USPS offers a 4% immediate postal reduction if a direct mailer is using their Informed Delivery program. This program started August 1st and runs through December 31st. The USPS offers other incentives throughout the year and for minimal effort, these savings really add up. We can help you utilize and manage this!

Q: Do you think that we expect any leniency / decreases in early 2023?

Unfortunately, we do not anticipate postage reductions in the future. Postmaster General Louis DeJoy is operating the USPS as a business, and as outlined in the Delivering for America plan, he is focused on achieving financial stability and service excellence at the USPS. 

Q: Tom, can you describe today’s catalog and direct mail market in one word?

Challenging – but there are solutions that help navigate increased postal costs! Let’s have a conversation. Don’t hesitate to reach out!

We hope you enjoyed the first of our quarterly USPS updates from Tom! Each quarter, he’s going to describe the catalog and direct mail market in one word… we’ll see where we net out around this time next year! We’re excited about what the future holds for offline marketing and look forward to partnering with you. For now, that’s what Tom has to say!

 

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Tom Says… Here’s What You Need to Know About the USPS Today

by Direct MailMarketing StrategyNewsUSPS

Would you have ever thought the USPS would be such a hot topic? We didn’t! However, the last few years have proven to be challenging when it comes to postal rate increases and how they affect brands’ catalog and direct mail strategies. That said, with challenge, often comes opportunity and reward.

We sat down with Tom VanWestrienen of Eliezer Consulting to get his take on the latest hikes. Not only are the changes daunting, but they can be difficult to understand. Tom is here to tackle some of the tough questions, and hopefully help future-proof your offline strategy. He’s seen it all in his 35 years working with catalogs and direct mail.

Q: What are the latest USPS rate increases for catalogs and direct mail?

The industry saw two significant postal changes in 2021 resulting in double-digit increases for catalogs (Marketing Mail flats) and near double-digit increases for Direct Mail (Marketing Mail letters). On July 10, 2022, the USPS again increased postal rates on average by 8.5% for flats and 6.5% for letters. While these are averages across each class of mail, one really needs to understand the changes on each postal sortation level to fully comprehend how the postage increases impact a customer’s mailing.

A few examples of this are in the August 2021 increase: Larger catalog mailers who consistently achieve high density and saturation sortation levels saw increases in these categories in the range of 11% – 14%, but the USPS impact the Marketing Mail flats class was published at 8.5%. On the latest July 2022 increase, non-profit flats saw significant increases in the range of 11% – 18%. Also, heavier catalogs approaching 16 ounces saw much smaller increases in the range of 2% – 4% with the latest postal increase.

The USPS has also recently announced their next increase, which will take place on January 22, 2023.  Marketing Mail letters can expect an increase of 3.3% while Marketing Mail flats should expect an increase around 6.3%, but just like the 2021 increase, the USPS is hitting high density and basic carrier-route sortation levels more significantly. This results in surges much higher than the announced flat increases for direct mailers who regularly achieve these sortation levels.

Q: Why are there increases for catalogs and direct mail?

To achieve financial sustainability, the USPS is now allowed to pass along two increases annually, one in late January and the other in early July. 

The USPS now determines postal increases based on four factors:

  • – Consumer Price Index (CPI) impact
  • – Address density impact
  • – Retirement funding for its workers
  • – Underwater products in compensatory classes

Current underwater products include Marketing Mail Flats, Marketing Mail Carrier-Route Flats & First Class Flats, which is why their rates are being increased.

Each increase will include some or all the components depending on specific rules around when or how they can be applied to postal increases. We expect that in the next couple of years, the USPS will annually pass along one large increase and one lower increase as they work to become more financially sustainable. Past increases based solely on a CPI factor are no longer in place. Underwater classes will see at least a 2% surcharge on postage to normalize pricing to cover costs.

Q: How will this affect print production and circulation planning?

While costs continue to escalate, direct mailers have been hit especially hard these past few years. One would think that there will be circulation and/or page reductions to help minimize these escalations. We would also expect direct mailers to change the formats of their programs. While overall catalog costs have elevated significantly in the last three years, letter mailing may still be an attractive alternative for direct mailers. “Slim Jim” and letter sized all-inline formats should become more popular because the cost to mail these types of products are much more affordable.

 

Stay tuned for Part II of our conversation next week! In our follow-up conversation with Tom, we discuss how brands can prepare for the all-important holiday season and update their DM strategies for 2023 based on the upcoming USPS changes. Be sure to check in next week!

 

Printing,House.,Checking,The,Print,Quality,And,Accepting,Color,Proofs.

How Marketers Are Responding to the Global Paper Shortage

by Direct MailMarketing StrategyNews

Direct marketing is arguably the way forward. To be an effective omnichannel brand, print marketing efforts should be included in your strategy. In fact, did you know that there is 400% effectivity of marketing campaigns that combine print and digital ads? (source: Finances Online)

Additional Stats to Keep in Mind:

  • – 95% of people under 25 read magazines
  • – 82% of consumers trust print ads the most when making a purchase decision
  • – 70% of households with income over $100K are newspaper readers
  • – 92% of 18–23-year-old adults say it is easier to read print than digital content

Most importantly, 80% of consumers acted on targeted printed mail ads, and 77% of consumers said that print drives higher levels of recall (source: Finances Online).

As you know from last week’s blog post, we are experiencing a global paper shortage. So, even if you want to launch a direct mail or print marketing campaign, can you do it? The answer is a resounding yes.

A Few Ways That Marketers Are Responding to the Global Paper Shortage:

  • – Page count and circulation fluctuations
  • – Increased use of direct mail (less paper)
  • – Clever interplay between offline and online efforts
  • – Digital natives turning to print in new ways (NTF, trigger, loyalty, and retargeting campaigns)
  • – Short and long-term adjustments to marketing cadence
  • – Willingness to try new things

What’s Next:

Traditional ad spending set to increase, which is a demand driver. After 10+ years of decreases in traditional ad spending, marketers are predicting an increase of 1.4 to 2.9% in traditional media. Traditional channels – TV, radio, and print – outperform digital channels in terms of reach, attention, and engagement, relative to costs. In fact, the top five most trusted ad formats are traditional with print advertising at 82% and direct mail at 76% (TV and radio as well) (source: MediaPost).

Tips for Smart Paper Buying:

  • – Make quick decisions
  • – Be open to grade substitutions and alternative substrates
  • – Look for the “sweet spots” such as basis weight, finish, location, and trim
  • – Improved forecasting and budgeting
  • – Level ordering
  • – Assess whether inventory programs make sense
  • – Spot vs. contract buying
  • – Maintain a sourcing strategy
  • – Pay your bills

Container prices are decreasing – specifically marginally by 0.1% to $7,625.56 per 40ft. container (source: Drewry’s composite World Container Index).

We are hopeful for a more balanced market in 2023. In the meantime, ask us about our tips for smart paper buying!-old 

paper industry

A Status Update on the Paper Industry

by Direct MailMarketing StrategyNews

Today’s paper market themes include price increases, mill allocations and late deliveries, low inventory at the mills, rising input costs (pulp, labor, energy, chemicals, freight), machine conversions, surcharges, and port congestion and container shortages.

Where We Are

  • – Global pulp prices are up 20% in the last four months. (source: RISI Fast Markets)
  • – Input costs are still on the rise.
  • – U.S. trucking market is softening slightly.

How We Got Here

  • – Pandemic
  • – Issues with supply & demand
    • Port congestion
    • Schedule reliability
    • Warehouse congestion
    • Container imbalance, congestions, and chassis shortage
    • Rail car shortage (especially in Canada)
    • Trucking challenges
  • – Rising input costs
  • – Supply chain issues

Forces Impacting Paper Logistics / Supply Chain

  • – Russian invasion of Ukraine (impact of Russian sanctions)
  • – Economic uncertainty:
    • Weakening consumer confidence
    • Inflation and rising interest rates
    • Reversal of quantitative easing
    • Phasing out of COVID-19 stimulus
  • – U.S. midterm election
  • – ILWU contract negotiations this summer
  • – Additional COVID-19 lockdowns in China
  • – Potential strikes and associated logistics congestion
  • – Energy costs

Understanding where we are and how we got here is imperative in determining how we can move forward. Stay tuned for next month’s post featuring how marketers are responding to the global paper shortage. There will be bonus tips for maximizing your brand’s success.

 

A man holding a remote control while watching a ski jumping on TV.

Why Direct Response TV Today

by Marketing StrategyMarketing Trends

So many of the headlines we see in the marketing industry are about Connected TV (CTV). Don’t get us wrong – we’re just as excited about this channel that’s growing at an exponential rate. In fact, so many of our clients have experienced success that we published a blog post on why CTV should be in your media mix today.

Today, TV remains the most dominant share of viewership in the country, which is why CTV has soared in recent years. However, cable, broadcast and satellite are not to be overlooked. Specifically, Direct Response TV or DRTV, allows brands to efficiently reach large audiences at scale, and can be differentiated based on the national or local market. In fact, marketing professionals today still consider DRTV to be the best asset for achieving marketing goals.

We thought it would be helpful to provide a refresh on DRTV, and why it is strategic to test the channel in 2022 and beyond.

What Is It?

It’s Cable. It’s Network. More specifically, Traditional Direct Response TV closely monitors the response directly following an advertisement. These are the ads that not only drive brand awareness but sales. 

How Does It Work?

There are various forms that should be applied to different goals.

If you’re interested in raising brand awareness, Short Form is the way to go. It is any commercial two minutes or less.

If you’re interested in driving response with your campaign, we also recommend :60s and :120s for optimal conversion rates.

Why DRTV Today?

Cost-Effective: The marketplace is fluid and inventory is based on supply and demand. But, the rate structure is lower than the general market.

Measurable: It is entirely measurable – CPC, CPO, CPM, CPP, CPS, MER, ROI, CPR, IMP, ROAS – and in-week optimizations are available.

Ideal Timing: There is flexibility to get on air quickly and the ad is cancellable within three business days. Media is optimized in real time based on the client’s primary KPIs.

Let’s have a conversation about video buying in terms of linear and advanced TV. Why not add CTV into the discussion!? Enhancing your omnichannel strategy with DRTV and CTV (and more!) will contribute to your brand’s future success.

 

Path to Conversion

Everyone’s Talking About Attribution: Top 5 Things To Know

by DataDigital MarketingMarketing Strategy

At Media Horizons, we are focused on data driven marketing for a people-based solution. People-based marketing, according to Forrester, is “the ability to perform targeting and measurement at the level of real individuals by resolving consumer identity across all digital and offline channels.”

For the last 30+ years, our “secret” is placing emphasis on intensive data and analytics to ultimately grow our clients’ businesses. We were thrilled to host a webinar series this spring on data & analytics. Thank you to everyone who participated!

Our Strategic Lead of Business & Marketing Intelligence, Kunick Kapadia, led two sessions featuring our tips and tricks for optimizing Google Analytics as well as what you need to know about attribution today.

We thought it would be helpful to put together key takeaways for anyone that could not join us.

Key Takeaways

(1) While there are so many different attribution models available today, Last-Touch is the most used model. If you are using Last-Touch, keep as many variables consistent as possible for accurate results (i.e., keep lookback window consistent, etc.).

(2) Algorithmic attribution is our recommended model. In our opinion, it is most accurate in determining which channels are adding revenue to your business. However, it requires a high volume of data. So, if you are not spending a fair amount in digital then it’s important to note it may not be as effective for your brand. Let’s have a conversation!

(3) Online to offline attribution is a pain point for many companies today. As a reminder, this is when a behavior begins online, but is completed offline. As marketers, our goal is to tie this conversion together. It can be challenging, but we know how to solve for it using tactics and best practices related to geo-tracking, CRM integrations, and call tracking. Ask us how!

(4) Without an attribution model (or a poorly built one), upper funnel media are hurt most. This includes brand awareness and prospecting marketing such as display, new customer outreach via paid social, non-brand paid search, etc.

(5) Our world is changing, and new technology is coming to help us adapt! It’s important to stay on top of today’s changing landscape with privacy and cookies. By staying on top of this, you will be able to more seamlessly integrate or pivot as the landscape changes. We recommend relying on your agency partners to help you stay in the know.

We look forward to discussing all things data & analytics with you!   

Intelligence (BI) and business analytics (BA) with key performance indicators (KPI) dashboard concept.StartUp Programming Team. Website designer working digital tablet dock keyboard.

Top 5 Tips for Maximizing the Value of Your Google Analytics Data

by DataDigital MarketingMarketing Strategy

At Media Horizons, we are focused on data driven marketing for a people-based solution. People-based marketing, according to Forrester, is “the ability to perform targeting and measurement at the level of real individuals by resolving consumer identity across all digital and offline channels.”

For the last 30+ years, our “secret” is placing emphasis on intensive data and analytics to ultimately grow our clients’ businesses. We were thrilled to host a webinar series this spring on data & analytics. Thank you to everyone who participated!

Our Strategic Lead of Business & Marketing Intelligence, Kunick Kapadia, led two sessions featuring our tips and tricks for maximizing the value of your Google Analytics data as well as what you need to know about attribution today.

We thought it would be helpful to put together key takeaways for anyone that could not join us.

Key Takeaways

(1) Google Analytics can be overwhelming! Before you log into your dashboard, we recommend having an idea or focus of what you want to glean from your analysis. This will help you avoid getting lost in the maze of data housed in GA.

(2) Don’t ignore “Segments, which are a subset of users broken out in GA based on a specific set of criteria (i.e., users who converted, users who bounced, etc.). Using “Segments” in reporting is a powerful way to gain more insight into user behavior and identify optimization opportunities. Pro Tip: You can also build audiences using “Segments” for use across other marketing channels.

(3) Invest time into UTM best practices. UTM parameters are extremely important because it is how naming conventions are entered into GA.

  • – Consistent architecture and naming conventions will help you maximize value because reporting will be more efficient and accurate.
  • – Capitalizations matter.
  • – Use all 5 of GA’s UTM parameters as often as you can.
  • (4) When assigning goals, keep in mind that they should be very important actions on the website that you can track. With the complimentary version of GA, you are only permitted 20 goals, so be strategic with how you used them! Pro Tip: Goals are more friendly and flexible than events when it comes to reporting in GA, so you want to use them instead of just events for those key user actions.
  • (5) Data sampling is the key difference between GA360 and the complimentary version of GA. In regular GA, the larger the report you run, the smaller percentage of data is based on actual user data and the more is based on sampled data, which reduces accuracy. GA360 utilizes data sampling in a much smaller number of instances and also has more advanced integrations with other Google and third-party platforms. But it comes with a hefty price tag, so choose wisely between free GA and GA360.

Stay tuned for tomorrow’s post on key takeaways from our second session in the webinar series: “Everyone’s Talking About Attribution: Here’s What You Need to Know.”

People,,Delivery,,Shipping,And,Postal,Service,Concept,-,Happy,Young

Why Is Insert Media Still So Relevant Today?

by Direct MailMarketing StrategyMarketing TrendsOffline Strategy

With 2022 well underway, there are still so many unknowns in terms of post-pandemic consumer behavior — are changed behaviors here to stay? Brands continue to launch omnichannel strategies hoping for the best possible outcome with growth and sales.

Insert Media has been a highly responsive media channel for over half a century. It’s a tried-and-true channel that is not only reliable, but it’s cost-effective. However, here’s why it is still so relevant right now:

1. The Tight Paper Market

With press and paper shortages, companies utilizing catalogs and direct mail face several macro challenges today (in addition to those mentioned above!). In fact, leading supplier of print and packaging, Lindenmeyr Central, recently reported: “Paper supply has never been tighter.” Brands that rely heavily on direct mail for Acquisition need alternative solutions. Since Insert Media involves smaller formats and therefore uses less paper, it is easier to get paper for this channel than others.

2. Cost-Effective, Targetable and Measurable

In marketing, response is everything. After all, our goal is to earn your brand more revenue — in a cost-effective way. Moreover, a brand’s performance with Insert Media is similar to Direct Mail at a fraction of the cost. Insert Media is targetable based on a brand’s audience. It can then be measured to determine the impact of the media on a brand’s campaign. This high-level of traceability will ultimately help your bottom line.

3. Implied Endorsement

In our post-pandemic world, partnerships are more popular than ever. Not only do they offer exposure to new audiences, but the shared resources are ideal. Helping brands with category or product expansion and customer loyalty, the power of partnerships is real (source: Shopify). With Insert Media, there is an implied endorsement — like partnerships — and trust is further established given that your brand’s insert is included in another company’s communications.

4. No Privacy Concerns

In today’s marketing landscape, privacy concerns are top of mind. As we continue to navigate our way through privacy issues with other channels, the great news is that there are no privacy concerns for Insert Media.

5. Different Types to Fit Your Brand’s Needs

From catalog blow-ins, package inserts, shared mail, onserts, and single-sheet inserts to statement inserts, there are many different types of Insert Media. Whether you’re a high-end retailer or mid-ticket company, there are Insert Media strategies for each brand. Whether you’re a high-end retailer or a mid-ticket company, there is an Insert Media strategy that fits your brand.

If you’re looking for new channels for your brand, get in touch with us today and discover all that Insert Media has to offer.

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Strategic Marketing Leader, Mark Friedman, Offers Catalogers and DTC Brands Tips For Making 2022 Their Most Successful Year

by Digital MarketingDirect MailMarketing StrategyMarketing TrendsNews

Recently, we sat down with strategic marketer, Mark Friedman, who has driven growth in the competitive digital marketing space for 25+ years. From Brooks Brothers to Warnaco–where Mark ran businesses for Speedo, Calvin Klein Underwear, and Calvin Klein Jeans–to Steve Madden, FullBeauty Brands, and Amerimark Holdings, Mark has led the charge in driving traffic to stores, websites, or phones, and optimizing conversion of that traffic for both offline and online brands.

In our latest discussion with Mark, we talked about how marketers can maximize their success in 2022. With so many macro factors at play–from the supply chain, pandemic, and consumer behavior to new technology–the playbook is being rewritten both for catalogers and DTC brands.

According to Mark, here are ways that catalogers and DTC brands can make 2022 their most successful year yet…

1) If you’re digitally native and not currently using DM, test it out!

Testing any form of Direct Mail (DM) will optimize your omnichannel strategy. You may try different forms, or just one–either way, direct mail increases customer engagement and therefore, will help drive response and brand awareness.

If you have already been in the mail with catalogs (or currently are!), you are likely experiencing the stress of paper shortages and press concerns. DM is a viable solution for this problem–and we can support the execution. 

2) Analyze “changed” consumer behavior.

As we all know, COVID-19 has created new customer behavior, changed brand loyalty patterns, and increased digital adoption. However, several brands have reported that the new customers acquired during the pandemic are similar to those they had been acquiring in the past.

This tells us that current customers are incredibly important. What are you doing to retain all these customers? It is especially important to focus on customers who have not purchased a second time.

Overall, we recommend strengthening your marketing message o those who have not yet purchased a second time. In fact, we have a new solution that can help you with exactly this. Connect with us to learn more.

3) Double down on new customer acquisition.

As we just discussed, retention is always an important factor. But, even if you move the retention rate significantly, most businesses are still going to need 60-70% of their buyers in any given year to be new.

The most successful DTC marketers are successfully employing a broad media mix including paid search (brand and non-brand), display, affiliate marketing, retargeting, social (organic and paid), email and SMS, and marketplaces.

4) Realize that online is everything.

While some brands may view themselves as “offline” or “catalogers,” the web is where everyone needs to be. Of course, there have been several changes recently with the iOS 15 updates, Facebook adjustments, and more, but it is important to think about all the data that is still captured online. With more first-party data, loyalty programs can excel, preference centers can strengthen customer relationships and optimal site speed will not only drive higher conversion, but the customer experience will be enhanced. There is an opportunity for offline brands…online. 

5) Reevaluate your shipping methods.

The rising prices from shippers and increased number of backorders cause more split shipments and packages per order and therefore, the net freight expense as a percentage of your net sales is likely going up.

Brands must manage the current situation. You may do this by revising the value of a free shipping offer and the hurdles you use. Look at the methods for how you ship. If you have stores, how are you leveraging the store fleet (i.e., ship from store) based on where shipping costs may be lower? This may even help reduce the ship time for customers.

6) Be realistic about today’s supply chain and pivot.

Order earlier than you ever have before. Often, you cannot make changes once the orders have been placed due to lead times. Some questions to ask: Can you accept backorders? If not, can you build that capability?

Now is the time to focus on the innerworkings of your brand. What can you afford to shift? What is not adding to your success right now? Answering these questions honestly and realistically will benefit your bottom line.

7) Rely on your building blocks and best practices.

When in doubt, always rely on your foundational building blocks. Nobody knows your business better than you. Therefore, you can determine what to change and continue most efficiently. From this standpoint, it is all about the details. For example, can you extend a contract for a reduced price? Are there services that you can do without? Two words: Be relentless.

We hope you enjoyed Mark’s insight for how to add success for your brand this year. No matter your product or service, the recipe is the same. Whether we’re talking about macro trends, your unique strategy or tried and true best practices, Mark believes “the devil is in the details.” That said, we’re looking forward to collaborating this year and beyond!