Chelsea Paper backs off search marketing in favor of old school options

When asked if The Chelsea Paper Co. learned any valuable lessons after looking back on its business strategies of 2005, company executives reply with an enthusiastic “Yes!” What lesson is it that sparks such a quick and potent reply? Search engine marketing is not what it used to be.

Search engine marketing has become much more competitive; as a result, it increasingly is difficult to generate a positive ROI, says founder and president Lauren Marrus.

“We now are turning our focus back to basic marketing,” Marrus says. “By returning to the fundamentals, we will be able to attract new customers and generate revenue the old fashioned way—by providing good value, good service and an easy shopping experience. To that end, we’re fine-tuning our site design: streamlining navigation, increasing focus on merchandising and rolling out new features on a monthly basis.”

Chelsea Paper boasts “all stationery for all occasions,” including customized stationery, invitations, announcements and holiday cards. New marketing efforts this year include: enhanced e-mail marketing, such as sending newsletters and special offers and analyzing results via vendor EmailLabs; improved direct mail, such as sending customers postcards with new product descriptions and special offers, with an increased emphasis on the holiday season; and more public relations, including working closely with many bridal, home, women’s service and women’s fashion publications.

According to Internet Retailer estimates, the company reached $4.6 million in online sales last year, a 30% jump over 2004’s $3.5 million. 85% of the company’s 2005 estimated total sales of $5.4 million came from its web channel.

“Our goal for e-commerce for 2006,” Marrus says, “is to continue our double-digit growth.”