A Multi-Channel Competitive Advantage

RichFX created a seamless integration with their technology backend that resulted in significant cost savings and a 14% increase in average order size. BrightMinds (www.BrightMinds.co.uk) is a multi-channel retailer of children ’s educational and development products including games, puzzles, flash cards, books, CD Roms and charts.

 

With both a print catalogue and an online shop, they service all of their UK and many overseas customers out of their own warehouse based just south of Bath. BrightMinds was established in 2000 and has already earned 4 National Mail Order Awards, including the ECMOD 2005 Award for “Best All Around Catalogue Business” in their annual sales bracket.

BrightMinds sends out over one million print catalogues per year. They come out with 4 issues annually, each about 60 pages in length. In January of 2006, UK's Royal Mail announced that they were going to change their pricing structure and increase mailing costs. As a result, BrightMinds came to the realization that the process of mailing millions of print catalogues a year was going to become very expensive, especially to anyone overseas, leading the retailer to explore the solution of an online catalogue.  

Most of BrightMinds' competitors are online-only retailers with no online catalogues on their sites, just product categories and pages. The availability and popularity of BrightMinds' print catalogue gives them a competitive advantage over these retailers, and they knew they could further solidify this advantage by bringing the catalogue online. Also, the retailer recognized that giving customers the option to browse the catalogues online would endorse the BrightMinds name and provide a clear, consistent brand image.         

Challenges /Goals

  1. Reduce the number of print catalogue requests
  2. Increase competitive advantage
  3. Increase average order value and response rates
  4. Provide a clear and consistent brand image
  5. Give a catalogue shopping option to customers overseas who cannot receive print

Strategy

Engage
  • Endorse a consistent brand image by seamlessly integrating the online catalogue onto BrightMinds’ site
  • Increase browsing time with rich media interactivity
  • Provide a link to catalogue on the homepage and all top level navigation
Inform
  • Send monthly direct marketing emails that focus on and link directly to the catalogue
  • Show product detail with catalogue zoom feature
Convert
  • Link directly to transactional product pages
  • Click through from catalogue pages to suggested cross-sells and up-sells

Results

  1. 14% - increase in average order value
  2. 15% - increase in response rates
  3. 10% - decrease in printed catalogue requests
  4. Growth in competitive advantage
  5. Increased customer satisfaction

As a result of the strategies developed by both BrightMinds and RichFX, the average order value for purchases made by clicking through the online catalogue as opposed to those who clicked through on normal product pages was ? 52 and ? 45 respectively, a 14% increase overall. Additionally, RichFX solutions helped BrightMinds to experience a 10% decrease in printed catalogue requests, a goal that they were delighted to reach.

The decrease in printed requests was not only financially advantageous to the retailer, but it helped BrightMinds do their part in helping the environment. "We know that it is unrealistic to expect all of our customers to convert to using the online catalogue only, but we have definitely seen a significant shift.  We are advocates of environmental improvement, and I'm happy that we're able to contribute to this cause," Quill said.  

Customer response to the addition of BrightMinds online catalogue was extremely positive. Response rates for emails that directed customers to catalogue pages via a "click to buy" button increased by 15%. In addition, verbal and written feedback indicated that customers thought the online catalogue was a "brilliant idea" and it was "so much easier to use then product lists on the website." They also exclaimed how exciting it was that BrightMinds was intentionally and effectively reducing paper use in regards to the environment.

Goals such as providing a consistent brand image and sustaining a competitive advantage were clearly met. BrightMinds site drives more traffic than ever, and with the online catalogue, customers are even more prone to purchase items from the website.   Also, the online catalogue gives them an advantage overseas, providing customers outside the UK with a way to browse catalogue pages from a UK retailer, something they don't get to do on local competitor's sites.

Next Steps

In the short term, BrightMinds plans on including more catalogues onto their site and adding more than 100 pages to the next issue. Additionally, by continuing to focus on the online catalogue via email, they expect to reduce printed costs even further, adding to total revenue. By choosing the RichFX platform, BrightMinds has given itself several options including alternative views, co lour change and zoom.

"Our partnership with RichFX has saved us time and money, and we've been able to grow because of it. We are extremely satisfied with the results we've seen, and we plan on working with them for years to come," said Quill.


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