Turning customer service upside down: publishers look to take a pro-active approach

Folio: The Magazine for Magazine Management, May 1, 1991 by Susan Hovey

NEW YORK CITYCatalogers do it all the time. Mr. Jones calls to order a pair of pants and he ends up buying two shirts as well. Upselling. Cross-selling. Re-selling. The idea is far from new. But for magazine publishers, the opportunities that lie in customer service have become more important than ever.

"People are starting to recognize that telemarketing/customer service reps are part of their sales force," says Henry Rossi, president of Eastern Credit Corp., an operations and collection consultancy based on Long Island. "The percentage of inquiries that come in by phone versus mail is going up and up. And the cost of acquiring new customers is getting more and more expensive. It's much cheaper to retain them. So why not take the opportunity when we have them on the phone?"

Upselling has been employed at Entertainment Weekly. Since the title began airing direct response Tv ads after Christmas, 45 percent of the callers have taken an upgraded subscription, according to Marjorie Rich, director of broadcast advertising for Time Inc. Magazines. And it doesn't hurt that 30 to 35 percent of callers pay by credit card.) Readers get the first 18 issues at the basic rate of 99 cents per copy; if they agree to an upgrade, they get the next 12 issues at 50 cents each.

"Once you have them on the phone," says Rich, "there is no more acquisition cost. So to get those incremental boosts at that point is wonderful. The concept is really right out Of Direct Response 101. The longer these people are on your file, the less turnover you have and the easier it is to renew them."

It's that same mindset that has Reader's Digest in the early stages of re-examining its customer service department to take better advantage of the numerous opportunities the company has for cross-selling with its various magazines and products. "You have to be willing to accept a broader view of what customer service is all about," notes Victor Petralia, associate director of U.S. marketing operations for the company. "The traditional view-processing orders and answering complaints-limits the things you can do."

Petralia reasons that if a customer cares enough to initiate contact, then it can't hurt to make them aware of some other products-as long as you are careful not to let your pitch become the primary focus of the call. "You have to understand the balance between customer service and selling."

And the key to that, Rich adds, is testing. "We test different price points, different upgrades, just like we would any other direct marketing variable. "

After all, the worst a customer can do is say no.

List Activity

Walnut Acres

Buyers of items such as soups, vegetables, fruits and nuts from the Walnut Acres catalog. 66% female. Average purchase: $40. Cost: 55/M to $80/M. 5,000 min. For more information, contact D-J Associates, 77 Danbury Rd., Ridgefield. CT 06877. 203-431-8777.

Visual Horizons

30,055 buyers of and inquirers about presentation/meeting products such as projection tables, video furniture and storage systems. 70% male. Average purchase: $87. Cost: $65/M to $75/M. 5,000 min. Contact: Direct Media Inc., 200 Pemberwick Rd., Greenwich, CT 06830.203-532-1000.

Jewelry buyers

Respondents to the Diamond Essence catalog. 80% female. Average age: 44. Average purchase: $325. Mostly married. Average income: $75,000 . Cost: $5/M to $35/M. Contact: The SpeciaLists Ltd., 120 East 16th St., New York, NY 10003. 212-677-6760.

California Business

Subscribers to California Business. 84% male. Median household income: $87,700. Average age: 46. 59% in top management jobs. 72% own stocks/securities. Respond to direct mail. Cost: 85/M. 5,000 min. Contact: The Kleid Company Inc., 530 Fifth Ave., New York, NY 10036-5101. 212-819-3400.

Annie's Attic

American and Canadian respondents to Annie's Attic Needlwork Craft catalog, club and newsletter. 100% female. Unit of sale: $15 to $20. Cost: $60/M to $80/M. 5,000 min. Contact: Total Media Concepts Inc./List Management Division, 222 Cedar Lane, Teaneck, NJ 07666. 201-692-0018.

Bakery Production & Marketing

40,036 recipients of Bakery Production & Marketing. Includes bakery personnel in management, operations, sales and purchasing. Cost: $100/M. 5,000 min. Contact: Aggressive List Management Inc., 3355 North Arlington Heights Rd., Arlington Heights, IL 60004. 708-577-4455.

Nintendo buyers

Buyers of Nintendo Entertainment Systems. Belong to Mattel Canada Inc.'s Nintendo Power Club and receive Nintendo newsletter. Ages range from under 3 years to over 40. Cost: $85/M. 5,000 min. Marketry Inc., 2020 116th Ave. N.E., Bellevue, WA 98004. 206-451-1262

Educational software buyers

28,561 buyers of and inquirers about science and special education software. Average purchase/science software: $270. Average purchase/special education software: $180. Cost: $75/M to $85/M. 5,000 min. Contact: Marketing General Inc., 1613 Duke St., Alexandria, VA 22314. 800-899-4420.

Football News

Subscribers to Football News. Sub price: $29.95 for 20 issues. 97% male. Average age: 35. 50% have incomes of $50,000 or more. Cost: 55/M to $75/M. 5,000 min. Contact: Aggressive List Management Inc., 3355 North Arlington Heights Rd., Arlington Heights, IL 60004. 708-577-4455.