Direct marketing helps retailers win over new consumers without losing focus on the old ones

By: Lara Jensen

With competition for the consumer’s attention coming from all sides these days, retailers in search of new customers are facing more obstacles than ever before.

As traditional advertising vehicles like TV and print ads continue to reach progressively smaller audiences, “it is going to be harder for marketers to find new audiences going forward,” predicts Kevin Hillstrom, president of MineThatData, a consultancy in Seattle.

And for all its vaunted reach, the Internet isn’t always the best answer for acquiring new customers. “The Internet is good for finding existing customers who are at a certain point in the purchasing cycle where they are ready to buy from you again,” says Hillstrom.

When reaching out to customers who may have never heard of a particular brand, the answer is often less high-tech. Direct mail vehicles such as catalogs allow marketers to pick and choose whom they want to mail to, providing a viable way “to speak to an audience that has never bought from you and stimulate or create demand,” explains Hillstrom.

In 2007, for instance, Toys“R”Us Inc. tripled the circulation of its Toy Guide for Differently-Abled Kids to 3 million as part of an ongoing strategy to differentiate itself from other toy retailers. Although the toy store has produced the guide for more than a decade, the decision to push it more aggressively this year was made because Toys“R”Us wanted the guide available in its stores year-round, instead of just during the holidays, according to Bob Friedland, public relations manager at Toys“R”Us Inc. The guide is also being mailed to customers and distributed to national organizations for children with disabilities. The toys in the guide have been selected and evaluated by the National Lekotek Center, a division of Anixter Center that works with children with disabilities.

This isn’t only a print effort, however. The guide is also available for download from a special Web site. In September, Toys“R”Us stores were also enlisted to promote the guide via dedicated boutiques showcasing products from the guide.