Electronic Retailer - October 2012 - 39

BY BOB FORMICA

Fulfill Holiday Shoppers’ Wishes with These Vital Tips
CHANNEL CROSSING: FULFILLMENT
The importance of the holiday season to direct marketers cannot be underestimated as year-to-year e-commerce growth increased 15 percent during the NovemberDecember period last year according to comScore. This is a trend that is only likely to continue, as signs that the effects of the Great Recession are abating should help fuel an even more robust gift-giving season. One of the reasons shoppers turn to television, radio and the internet is the sheer convenience of shopping from home, and the assurance that a product is readily available versus the disappointment of finding the shelves empty at brick and mortar retail. With marketers effectively acting as surrogate Santas, it is imperative that they be able to fulfill their customers’ demands with efficiency, promptness and reliability. Furthermore, with more direct marketers relying on continuity programs, brand loyalty and a long-term customer relationship versus a one-time transaction, it is more critical than ever that a marketer have their fulfillment act together. Given the ease with which consumers can broadcast their delight or dissatisfaction online, the significance of managing inventory and consumer expectations cannot be overstated. Here then are some tips to ensure success during the fourth quarter barrage. • Manage Inventory Carefully: While this may seem obvious, the biggest variable within a marketer’s control they can leverage to help themselves succeed is to manage their inventory with great care. That means fastidiously forecasting inventory needs based upon past history and being realistic about the time required to manufacture and ship additional product so that it is ready for holiday shipment. Often, marketers may be tempted to divert their entire inventory to traditional retailers, but it’s worth remembering that direct sales are necessary to help offset the advertising costs required to educate consumers about product advantages. It is this DRTV advertising that drives awareness that ultimately helps move that product off the retail shelf. Therefore it’s advisable to balance out your inventory needs and make sure that you have adequate product for the direct pipeline. • Have a Contingency Plan in Place: If adequate inventory for a given SKU is unavailable, consider offering an alternative product as a fallback plan or offer an incentive to the consumer to stick with the purchase. In one instance, a marketer who was sold out of inventory for a highly desirable product sent a picture the consumer could print and wrap until the product arrived after the holidays, and believe it or not, this save-the-sale gambit worked! • Ship Expediently: Make certain that your fulfillment house has the ability to ship the same day that the order comes in and that the operations are running seven days a week with all necessary shifts, particularly as the holidays approach. Believe it or not, this is not always the case! To ensure that your customers receive their shipments promptly, split shipments between bicoastal warehouses to reduce delivery time. As the important dates approach, offer shipment via next day or second-day air to guarantee on-time arrival. • Over-Communicate: Be proactive about letting customers know when their products have been shipped and estimate delivery, and, if possible, allow customers to track the progress of their packages. If the product is being shipped as a gift, send a confirmation to the gift-giver once the package has arrived and take any mystery out of the equation. This sort of transparency will reduce customer service calls and their attendant costs, as well as stave off cancellations. • Be Honest: In line with the idea of transparency is this simple but profound best practice: honesty. Customers appreciate candor over not knowing how or when their desires are going to be fulfilled. This is the foundation of nurturing an enduring customer relationship and fostering positive reputation online. Attempts to keep your buyers in the dark are only likely to backfire as customer service calls will eat you up and unfavorable word-of-mouth in the blogosphere will send prospective customers into the arms of your competition. It’s worth remembering that at this particular time of the year, you may not just be selling a product, but be acting as an extension of someone’s goodwill and affection in the form of an ardently wished-for gift. Follow these tips to be certain that you can fulfill your promises and keep customers happy and satisfied. Customer loyalty, not to mention profitability, will be your reward. Bob Formica is vice president of operations of Fosdick Fulfillment. Established in 1965, Fosdick provides comprehensive logistics/fulfillment services in a variety of vertical markets including direct response, retail distribution, promotion support, premium incentives, catalog and sustained point-ofsale programs. He can be reached at (800) 759-5558 or bobf@fosdickcorp.com. 39

October 2012 | electronicRETAILER



Electronic Retailer - October 2012

Table of Contents for the Digital Edition of Electronic Retailer - October 2012

Calendar of Events
Your Association, Your Bottom Line
Industry Reports
FTC Forum
IMS Retail Rankings
Jordan Whitney’s Top Categories
Ask the Expert
From the Executive’s Desk
It’s All About the Numbers
Media Attribution Goes Mobile
Marketing to Teens: Not All Fun and Games
Guest Viewpoint
Guest Viewpoint
DRTV
Teleservices
Fulfillment
Member Spotlight
Bulletin Board
Advertiser Index
Classifieds
Rick Petry
Electronic Retailer - October 2012 - cover1
Electronic Retailer - October 2012 - cover2
Electronic Retailer - October 2012 - 3
Electronic Retailer - October 2012 - 4
Electronic Retailer - October 2012 - 5
Electronic Retailer - October 2012 - 6
Electronic Retailer - October 2012 - Calendar of Events
Electronic Retailer - October 2012 - Your Association, Your Bottom Line
Electronic Retailer - October 2012 - 9
Electronic Retailer - October 2012 - Industry Reports
Electronic Retailer - October 2012 - 11
Electronic Retailer - October 2012 - FTC Forum
Electronic Retailer - October 2012 - 13
Electronic Retailer - October 2012 - IMS Retail Rankings
Electronic Retailer - October 2012 - 15
Electronic Retailer - October 2012 - Jordan Whitney’s Top Categories
Electronic Retailer - October 2012 - 17
Electronic Retailer - October 2012 - Ask the Expert
Electronic Retailer - October 2012 - From the Executive’s Desk
Electronic Retailer - October 2012 - It’s All About the Numbers
Electronic Retailer - October 2012 - 21
Electronic Retailer - October 2012 - 22
Electronic Retailer - October 2012 - 23
Electronic Retailer - October 2012 - Media Attribution Goes Mobile
Electronic Retailer - October 2012 - 25
Electronic Retailer - October 2012 - 26
Electronic Retailer - October 2012 - 27
Electronic Retailer - October 2012 - Marketing to Teens: Not All Fun and Games
Electronic Retailer - October 2012 - 29
Electronic Retailer - October 2012 - 30
Electronic Retailer - October 2012 - Guest Viewpoint
Electronic Retailer - October 2012 - 32
Electronic Retailer - October 2012 - Guest Viewpoint
Electronic Retailer - October 2012 - 34
Electronic Retailer - October 2012 - 35
Electronic Retailer - October 2012 - 36
Electronic Retailer - October 2012 - DRTV
Electronic Retailer - October 2012 - Teleservices
Electronic Retailer - October 2012 - Fulfillment
Electronic Retailer - October 2012 - Member Spotlight
Electronic Retailer - October 2012 - 41
Electronic Retailer - October 2012 - 42
Electronic Retailer - October 2012 - Advertiser Index
Electronic Retailer - October 2012 - Classifieds
Electronic Retailer - October 2012 - 45
Electronic Retailer - October 2012 - Rick Petry
Electronic Retailer - October 2012 - cover3
Electronic Retailer - October 2012 - cover4
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