Technology key to new digital print age
Last week, Communisis chief executive Steve Vaughan said the new print management model was “based on technology”. These comments, coming from the man who famously declared that print management, as we knew it, was dead, reflect a revolution taking place within the UK’s direct and transactional mail sector.
Knowledge is profit for the digital printers of today. The direct mail sector has been threatened by negative headlines, low response rates and an increasing drive towards environmentalism. The industry was forced to evolve to survive. That evolution has come in the form of personalisation.
Technological advancements and a better understanding of data mining and manipulation has enabled personalisation across a variety of applications, using print to complement other platforms, such as SMS and the internet.
Technology is key
Vaughan’s comments concur with the message coming from across the industry.
Polestar Direct’s Tim Smith said: “The key to unlocking the potential of digital print is knowing how to use the technology.”
Andy Young, group managing director of Dsicmm, added that data manipulation enabled a true dialogue with clients’ customers.
He said: “We are moving closer to one-to-one marketing. Data driven personalisation is our focus.”
Indicative of the changing industry, Dsicmm now employs 70 software developers across the group, each designing software packages tailored to individual client’s needs. Ten years ago, the then two separate companies only employed one developer between them.
The largest and most advanced example of the new age of digital printing is publishing the Tesco clubcard marketing literature, a job entrusted to Polestar Direct. More than 13m statements are mailed per quarter and the statements contain both vouchers and coupons while the mailing is highly personalised with over 9m variations.
Today, digital printers are continually searching outside the box to add value. Print, as a medium, remains very much alive, but it is supplemented by additional services. Each company has its own methods.
Individual approach
Dialogue Solutions has developed Infastream, a fully integrated SMS, internet and print service enabling consumers to respond to ‘trigger marketing’, where special prompts are defined and coded into your database.
When a pre-determined event occurs, this code ‘triggers’ the automatic creation and dispatch of a relevant marketing communication, be it a digitally printed DM, an email, an SMS message, or a personalised web page.
Personal print
The Howard Hunt Group has its own data management company, Celerity, which specialises in database development, prospect pool creation and data enhancement. Celerity ties in with the company’s printing arm to deliver personalised print.
Personalisation comes in many different guises. These include having the client’s name written on a calendar to a fully integrated marketing campaign involving integrated personalised websites and printed marketing literature with, for example, offers and discounts based on the consumer’s spending habits.
Young says the early adopters of personalisation did not realise its potential. “The best personalisation is when the consumer does not realise they have been targeted. It is about driving personalised imagery and content, not just writing a name in spaghetti letters.”
Indeed, it has taken clients a long time to wake up to the applications for which personalisation can be used. Aside from cross-media marketing, a key growth area currently is transpromotional marketing, or transpromo.
Also known as white space advertising, transpromo enables banks and utility providers, among others, to use their invoices as extremely well-targeted marketing documents. It is potentially a vast market.
New angle
Recent research by Pitney Bowes estimated that over £2.8bn worth of advertising space on bills and statements lies unused in the major European economies of Germany, France, the UK, Italy and Spain.
Communisis’ Vaughan said: “Over the past few months, we’ve seen our big customers talk about transpromo in a more serious way than ever before. That is a real opportunity for us.”
According to Dsicmm’s Young, transpromo is not a new concept. “We have pioneered the concept for the past six years and lay claim to the world’s first transpromo invoice.
“Successful transpromo today is not simply about merging data. It is process driven, often involving multiple data sources. We have used up to 11 different data sources for one application in the past.”
Personalisation increases response rates and reduces wastage. Technology and, more specifically, data management lies at the heart of digital printing in 2008. As Polestar’s Tim Smith concludes: “Digital printing is about finding solutions for your clients, not filling the presses.”
Tesco: the company’s clubcard scheme is one of the largest examples of digital print’s new age
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Comments
Colin Thompson - 04 April 2008
Excellent to see the views of the top leaders.
I share with you a few of my views that may help you.
The Digital Future for the Printing Industry
2008 is the year of expansion
The printing industry is currently and will continue to experience many transitions in the form of `Digital Printing and Communications` and 2008 is the year for expansion for the global market.
The printing industry will continue to evolve into new and exciting `electronic imaging driven by digital technology`. Digital technology, economic restructuring, global competition, market changes, emerging new media and other market forces are combining to `dramatically` change the operating environment of the Printing Industry. The traditional printing industry is very mature with over capacity in the established countries and also `very poor` training of personnel and very few people entering the industry. We are in the `emerging information society` driven by technology, where by the very nature of the role of the printer is changing rapidly, driven by `customer demands`. What is required will be trained personnel with a passion to learn, together with experienced and skilled people of `any` age to forge the future.
The major drivers are first, technology, particularly the digitisation of data, is reshaping the communications industries. The rapid experience of the convergence of computers, telecommunications and television, plus the use of `multimedia` and the speed of change in the `information superhighway`.
The second major driver is the changing macroenvironment, particularly the rapid restructuring of the world economy and global competition.
The consequence of these two major drivers is the movement in print markets worldwide. The emerging `new` countries who invest into the print/communications industries with the latest equipment are global players whom will significantly drive down prices by the economies of scale.
Print companies are redefining their business (or they should be) to one of identifying `customers` changing communication needs brought about by the digital processing and storing of information and delivering it through the most effective distribution channel. Since printer’s are/should be already well established in `imagery`, they are well positioned to participate in new channels as they develop. If print companies do not take on board new technology, they will not survive in this rapid changing environment.
With technological and market change, competition for critically important skills will increase across the board, raising the premium on attracting, training, managing and retaining the best skilled workers and managers. Managing technology, capital and costs will continue to grow in importance. Also, age should not be a factor, but the ability to carry out the function at the highest standards, using experience and skills that are required at each sector of the business.
Above all, printers will have to strategically - oriented businesses, be aware of changing technology, markets and other external developments and able to take advantage of them profitably. Indeed, for many printers hiring or developing a `digital champion` to act as a catalyst for change within their company will be a critical step. We are in `A Digital World` so take it on board or you will not survive.
Colin Thompson
Cavendish
www.cavendish-mr.org.uk
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