Spiegel Rolls Out Freebie Campaign

SPIEGEL, which has long charged $10 for its catalog in space ads, will offer its spring book for free.

Tests conducted last spring tripled response to the firm's ads, while producing adequate conversion rates.

“We wouldn't be rolling it out if it weren't advantageous to us,” said Bradford Matson, senior vice president of advertising.

While some consumers may not be as willing to shell out $10 for the book in this economic climate, Spiegel chalks up the success of the free offer — tested in the past without pulling an acceptable conversion — to a new look for the 97-year-old catalog.

That change may be needed, for Spiegel's core unit suffered an 8% drop in sales last December, compared with the year before.

In January, full-page glossy ads started appearing in numerous consumer publications including Marie Claire, Harper's Bazaar, Country Home, House Beautiful, O magazine and Martha Stewart Living. They will continue through April.

The basic ad features a young woman sitting on a bench dressed in a black-and-white skirt and sleeveless sweater. She is surrounded by phrases such as “Hello, Officer,” “Keep it Simple” and “Gentlemen, Start Your Engines.” The tag line, “Find Your Page,” appears at the bottom with an 800 telephone number and Web address. The bind-in card, which helps the magazine fall open to that page, offers the free catalog and reminds prospects of its $10 value.

“The ads allow us to get our message out to the country,” Matson said. “The role of the full-page fashion shot is to say ‘Wow, look at Spiegel.’ The card allows us to take that interest and convert [readers] to customers.”

The test was extended in the fall to 20% of all print ads. By this fall, the majority of space ads will promote the free offer, Matson said.

A four-page insert was added to the mix for the first time in the March issue of Vogue. The ad uses the same tag line and theme with the first three pages, showing the same model in a range of styles. The fourth page features 56 shots of models in different outfits along with an 800 number and Spiegel's Web address.

National print ads pull the highest “Zip quotient” — Spiegel's measurement of customer value — of all its acquisition methods. The Zip quotient determines the demographics and other key factors in particular neighborhoods, Matson said.

The catalog's three-year makeover came to fruition with the 560-page spring book. Spiegel improved the quality and style of its merchandise, and reworked layouts to focus on individual items.

For years, Spiegel offered its catalog for $10, throwing in a tote bag premium and a $10 gift certificate. That offer, which helped prequalify a prospect's level of interest, is still bringing in customers. The spring catalogs are also sold for $10 at bookstores, newsstands and grocery stores.