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Home shopping and sales figures at N Brown
N Brown's trading statement makes an interesting read. Internet penetration has increased to 11% of total sales, reflecting growth of over 60% to £44m.
The CEO's comments on multi-channel activity are revealing:
"Customers have never had so many ways to spend their money. We have responded to this competitive environment by expanding our channels to market and by targeted promotional activity.
The core route to our customer remains the mailing of catalogues. The frequency of mailings has been increasing, with our best customers receiving a major catalogue or brochure almost every month. This frequent contact helps to keep the offer fresh, the customers loyal and increases our share of their overall spending. These additional mailings also allow the introduction of new, and seasonal products, and we can offer selective price reductions and promotional offers to stimulate demand.
Varying catalogue formats has proved successful in achieving enhanced response rates. The sales from leaflets accompanying customers’ statements have been declining and we have been deliberately switching our marketing investment into the direct mailing of mid-season catalogues (such as New Now, Summer Value and Classic Detail), where the sales rose by 5% to £91m.
In addition to direct mail we continue to expand telemarketing activity at our call centres. In the last year £37m of revenue (up 3%) was generated through up selling techniques used on inbound orders and from outbound calls to selected customers promoting our special offers.
Our on-line activity continues to grow rapidly. Initially the internet was merely an alternative ordering mechanism to the telephone and post. This is no longer the case. We are now well into the development phase where our websites carry a much wider range of offers and products than any of our catalogues. These offers may be targeted at specific events, such as Mothers Day, or include additional products, such as flowers and vitamins. This channel to market therefore remains a key area for future development and growth."
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