It’s been proven many times, direct marketing yields the highest return on investment for your marketing budget. Talbots proves this again as it shifts its marketing budget to direct marketing. According to a DM News article:
The Talbots Inc. will reduce costs by $100 million over the next two years, including reducing its marketing budget by eliminating TV and national print advertising and redirecting half of the money from these areas to direct marketing.
“Talbots will make strategic investments in areas that it believes will have the highest potential benefits to rebuilding its brand,” said Trudy F. Sullivan, president/CEO at Talbots, during a conference call for analysts. “For example, eliminating TV and national print advertising this year will enable Talbots to fund greater customer outreach through increased catalog prospecting and Web-based marketing.”
Talbots already knows a lot about direct marketing and learned through from its 2006 acquisition of J. Jill. This deep knowledge will help them succeed with their marketing strategy.