5 ways to outperform in a competitive market

5 Ways to Outperform in a Competitive Market

March 19, 2015

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A special thank you to:

Today’s Speakers

Mark Michelson

Editorial Director/Editor in Chief

Printing Impressions

Moderator

Matt Swain Director

InfoTrends

#PIGWebinar

Kevin Marks Vice President, Global Production Print

Pitney Bowes

3 © 2015 InfoTrends www.infotrends.com © 2015 InfoTrends

5 Ways to Outperform in a Competitive Market Prepared for Printing Impressions and Pitney Bowes Webinar

Matt Swain Director March 19, 2015

4 © 2015 InfoTrends www.infotrends.com

Invest in technology and workflow 1

2

3

4

5 Become a strategic resource to your clients

Help drive client desire to reinvest in print

Ensure postal and regulatory compliance

Deliver a multi-channel experience




2

3

4







Declining PSPs Say They Need Better Devices

36% 40% 37% 38%

33% 27%

22% 20%

22% 24%

19% 24%

19% 8%

15%

18% 28% 27%

9% 20% 10%

6% 9% 8%

7% 8% 9%

6% 8% 7% 11%

0%

20%

40%

60%

80%

100%

Total Declined Remained Flat Grew 1% to 4.9% Grew 5% to 9.9% Grew 10%+

Other Lower operating costs

Need newer machines to address current volume Need devices with new capabilities

Volumes are increasing and need additional capacity Current devices need to be replaced by similar devices

N = 320 22 82 123 61 32

Source: Production Print Services in North America: Understanding Industry Transformation, InfoTrends, 2014

What is the primary driver for why you are purchasing new digital black & white or color printing devices?


Growth in Digital High-Speed Color Inkjet Systems

Source: InfoTrends’ Quarterly Market Tracker

2005 2006 2007 2008 2009 2010 2011 2012 2013

0

160

140

20

100

80

60

120

40

Print Engines

(10M+ Duty Cycle)

Q3

Q3

Q2

Q2

20

05

Q1

Q3

Q2

Q4

Q4

Q4

Q3

Q2

Q2

Q4

Q3

Q3

Q2

Q4

W-EU

20

13

Q1

20

07

Q1

Q2

Q4

Q3

20

10

Q1

20

08

Q1

Q4

20

09

Q1

Q3

Q2

Q3

20

06

Q1

20

12

Q1

Q4

Q2

U.S.

20

11 Q

1

Q4


Top Digital Printing Applications

Bills & Statements

Direct Mail Books Brochures Proposals & Reports

Source: U.S. Digital Production Printing Application Forecast: 2013-2018, InfoTrends, 2014; W. Europe Digital Production Printing Application Forecast: 2013-2018, InfoTrends, 2014


Inefficiencies in Current Workflows

16%

10%

10%

12%

13%

14%

19%

20%

21%

21%

22%

28%

Other

Connecting islands of automation

Lack of standardized software for our niche market

Embedding cross media in our main workflow

Working with legacy or old systems

Embedding variable print in our main workflow

Increasing throughput; shorten production times

Integration with customers' systems

Customer onboarding

Customizing the workflow to our needs

Keeping up with change; training users

Dealing with high number of small jobs

What are in general the biggest bottlenecks, problems, or inefficiencies in your current workflow?

1

2

3 3

Transactional

N = 623 respondents worldwide Source: Cloud-based Infrastructures & Workflows for Graphic Communications, InfoTrends, 2013


Top Workflow Initiatives for 2015

13%

14%

22%

24%

24%

35%

38%

40%

Integration of workflow components

Improve finishing automation

Improve business automation

Streamline invoicing/billing

Reduce manual labor through software investments

Cross-training of staff

Improve customer interaction via web-based systems

Expand workflow features to offer new services

What are your top three workflow initiatives for 2015?

N = 119 respondents Source: Production Software Annual Investment Outlook, InfoTrends, 2015



2

3

4







• Message: With the technology in place, show clients the extent of your capabilities!


3

2

1

End Customers Are Asking for Better Communications

How can your providers improve the business communications they send you?

Make them easier to understand

Personalize the content for me

Use color to emphasize important information

Source: Annual State of the Customer Communications Market Survey, InfoTrends, 2014


Reasons Why Consumers Embrace Paper Bills & Statements

N = 1,846 Consumers age 18+ in the U.S. that receive paper versions of online bills/statements Source: The Future of Multi-channel Transactional Communications in the U.S., InfoTrends, 2013

Why do you still receive paper versions of your bills and statements?

66%

55%

31%

18%

16%

I want a hardcopy for my records

It is my remind to pay my bills

It is a security precaution

Some are hard to review online

I don’t trust providers to retain an online document archive

5

4

3

2

1


Bills and statements are opened more than any other communication received by

mail, with average read times between 2 and 5 minutes.

Source: The Future of Multi-channel Transactional Communications, InfoTrends, 2013


Leveraging the Marketing Opportunity

Upsell Upsell Bill Details Bill Details

Informational Informational Upsell Upsell



2

3

4







Managing the…


22%

24%

26%

35%

38%

Data analytics on customerinformation

Electronic document delivery

Integration of customer data withback-end systems

Data management

Regulatory compliance

Primary Operational Customer Communication Challenges

Three responses permitted

Source: Service Expansion Opportunities for Document Outsourcing: North America, InfoTrends, 2012

N = 240 business respondents in North America

Which of the following operational functions present the biggest challenges relative to customer communication lifecycle and/or marketing?



2

3

4







2012 2.5 Billion GB of Data Created Daily

2014 2,300 Billion GB of Data Created Daily


Internet Access – A New Era

0

500

1,000

1,500

2,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

Desktop Access

Mobile Access

Source: Morgan Stanley

WW Internet Users (M) Desktop Era Mobile Era


70M photos and videos shared daily

500M tweets per day

864 million daily active users

300 hours of video uploaded every minute

1 in 6 minutes spent online

worldwide is spent on social media

platforms


Business Paperless Expectations Always Exceed Gains

Sources: The Future of Electronic Bill Presentment & Payment, InfoTrends, 2010 The Emergence of Digital Mailbox Services in the U.S., InfoTrends, 2011 The Future of Multi-channel Transactional Communications, InfoTrends, 2013 Annual State of the Customer Communications Market Survey, InfoTrends, 2014


Source of Interaction

It’s More than Print versus Electronic

Access Point



2

3

4







74% 73% 71% 70% 59%

14% 11% 14% 14%

15%

12% 16% 15% 16% 26%

Declined Remained Flat Grew 1% to 4.9% Grew 5% to 9.9% Grew 10%+

Printing Finishing Value Added Services

Growing PSPs Rely Less on Print Revenue

What percent of your income comes from the following types of services today?

N = 35 105 148 75 49

Source: Production Print Services in North America: Understanding Industry Transformation, InfoTrends, 2014


Source: Corporate Executive Board Study, The End of Solution Sales, Harvard Business Review

Researching Solutions

Ranking Options

Setting Requirements

Benchmarking Pricing

60% of the purchasing process is completed before having a conversation with a sales representative

The Purchasing Process Has Changed


Buyers Are…

• More educated than the seller

• Already deeply aware of their problems and often have well-scoped requirements

Sellers Are…

• Having difficulty adding value or convincing decision-makers to rethink their conclusions

• Being forced into price-driven conversations

An Increasingly Common Result

Source: Corporate Executive Board Study, The End of Solution Sales, Harvard Business Review



2

3

4







Strategic Paths for Service Providers

Innovation Driven

Operations Driven

Dying

Surviving Thriving

Greater

• speed • quality • efficiency • sustainability • customer service

New

• services • products

• customers • business models

Continuous investments in …

•technology •business processes •sales & marketing

that lead to …

Striving


[email protected]

SwainfoTrends

Helping our clients outperform in a competitive market Kevin Marks Vice President, Global Production Print

Pitney Bowes | March 2015 35

Efficiently produce more impactful communications with precision

Pitney Bowes 36

Industry Personalized revenue cycle communications Location RevSpring facilities in: Cincinnati, OH Phoenix, AZ Melville, NY Newark, OH Wixom, MI Oaks, PA Hamilton, NJ Technology used IntelliJet 20® Printing System as part of a White Paper Factory™ Solution, high speed, file-based inserters, Output Management

Company profile Full service provider with core service offerings including data hygiene and analytics, secure document creation and delivery, multi-channel communications, electronic billing and archival services and online payment tools, all while ensuring compliance with regulatory guidelines.

Challenge • Improve efficiencies and throughput of processing over 60 million

personalized communications per month

• Reduce inventory of custom stock and minimize set up time between jobs

• Ensure piece level integrity throughout the print and fulfillment process

through use of intelligent insertion and file auditing

Solution • Closed loop file auditing process with piece level reconciliation

• Automatic reprint process for any damaged pieces

• Moved to color print; Migrated custom stock to POD (Print On Demand) with

dynamic perforation capabilities, using plain white stock

Benefits • Improved mail piece integrity

• Piece level geographic print distribution between facilities

• Standardized production print stream to AFP

• Reduction in custom inventory

• Reduction in head count

“The Pitney Bowes partnership has enabled

RevSpring to streamline and optimize our

operations, create more dynamic product

offerings for our customers and excel in highly

regulated verticals that demand document quality

and accuracy.”

— Michael Hennessy

Senior VP of Information Technology

RevSpring

Pitney Bowes 37

Create higher value customer communications

Pitney Bowes 38

Industry Letter shop

Location New Jersey, USA Technology used Recently moved to IntelliJet 20® Printing System as part of a White Paper Factory™ Solution. High speed, file-based inserters, inline inkjet printers, sorters, card attachers. Company profile Barton and Cooney is a trusted name in the mailing and letter shop industries. Over the past four decades, Barton and Cooney has successfully provided a broad range of mailing services to local, regional and national firms. Printing Impressions Top 400.

Challenge • Respond to new opportunities using faster, digital color print

• Lower operational costs

• Combine workflow and consolidate jobs into a single print steam

• Provide clients a lower cost per piece for print

Solution • Migrate to digital color inkjet roll to cut-sheet capability

• Process more types of applications on a single system

• Enhance operational performance with service and support

• Invest in a proven, upgradeable platform

Benefits • Increased competitiveness processing high-speed, high-quality inkjet

• Reduced operating costs; increased throughput by 50%,

lowered FTEs by 2

• Gained new functionality and capability—Printing over 1000 variable data

jobs on wide range of substrates including pressure seal forms and post

card material

• Enhanced uptime and performance

“Pitney Bowes helped us transform our operation into a

White Paper Factory to create higher value

communications for our existing customers and win

new business. The IntelliJet 20 Printing System provides

high quality, digital color print and can process a wide

range of applications. It lets us move monochrome work

from toner to inkjet, lowering our running costs and greatly

improving our turnaround.”

— Pat Doyle, President/Owner,

Barton and Cooney

Pitney Bowes 39

Building business growth on higher quality, lower cost print-to-mail capabilities

Pitney Bowes 40

Industry Commercial print-to-mail provider

Location Jacksonville, Florida, USA Technology used Pitney Bowes White Paper Factory™ solution featuring IntelliJet® 20 Printing System, Mailstream Wrapper™ Productivity System, Print+ Messenger™ Color Inkjet System and Print+ Response™ Inkjet Module. Pitney Bowes Presort Services. Company profile Large Florida-based commercial print-to-mail operations serving clients in 15 states. Produces high-quality full-color documents from virtually any print stream available. Offers industry-leading process flexibility and document personalization.

Challenge • Sending millions of transactional documents monthly, requiring multiple pre-

printed forms, outer envelopes and business reply envelopes

• Needed to transform to a revenue generating business, expanding

capabilities and capacity

• Better manage postage costs after outgrowing in-house presorting capability

Solution • Moving to a White Paper Factory™ solution to fuel growth by integrating

print and mail processes into a single production workflow using rolls of plain

white paper rather than pre-printed and pre-cut forms

• Replaced six separate print engines with two IntelliJet® Printing Systems

and consolidated from eight inserters to two Mailstream Wrapper™

Productivity Series mail finishing systems

• Use Pitney Bowes Presort Services as part of their postal optimization

strategy

Benefits • Provide a higher level of customer communications using color print

• Produce finished mail pieces twice as fast, with less maintenance and

operators

• Gained capacity to add new customers

• Saved up to $300,000 in paper and lowered inventory storage by 75%

• Estimate postal savings of $1million over three years

“Working with Pitney Bowes to transform our

operations has allowed us to create more

dynamic, engaging and personalized

documents for our customers.”

— Ted Hagan, Senior Director,

Incepture Print Solutions

Pitney Bowes 41

Challenge • Increase efficiency

• Streamline process for printing personalized forms, supplements and

envelopes

• Achieve more stringent security requirements

Solution • Migrate to Pitney Bowes Inserting System to accurately process a wide

range of materials

• Leverage Print+ Messenger Color Inkjet System as part of a White Paper

Factory to deliver dynamic individualized full-color envelope printing

Benefits • Improved operational efficiency 200% including consolidating from 8 to 3

Pitney Bowes Inserters

• Lowered costs to client by 300%

• Greater security and privacy adding owners name and address on

windowless envelopes

• Capability to fulfill new security regulations in 2015

• Ability to offer clients zero-defect accuracy and visibility into every page

that is output for greater precision

Ensuring accuracy, security and compliance through strategic partnership

42

Industry Business process outsourcing

Location Lucerne, Switzerland Technology used Recently moved to IntelliJet 20® Printing System as part of a White Paper Factory™ Solution. High speed, file-based inserters, inline inkjet printers, sorters, card attachers Company profile The company provides both physical and electronic document processing capabilities for its clients, who depend on B-Source Outline for industry-leading security and privacy for the confidential documents it produces. These include bank statements, credit card statements, insurance documents and invoices.

Watch video

Pitney Bowes

https://www.youtube.com/watch?v=DQ39j07-uzE

“Pitney Bowes is the only company today that can help us fulfill our compliance requirements. The solution provides an unmatched level of security. We need to prove to clients that we can comply, and now we can offer them an absolute assurance of security.” — Rene Felder, CEO, B Source

Pitney Bowes 43

For us, getting it right matters.

We deliver accuracy and precision across the connected and borderless world of commerce to help our clients create meaningful impact.


Pitney Bowes can help you gain a competitive advantage by delivering more impactful, accurate and precise communications


Create engaging communications

Print impactful communications efficiently

Insert unique content accurately and securely

Sort communications to maximize savings

Learn more at pitneybowes.com or contact us at 1 877 406 7704

Client care help you achieve business initiatives

http://www.pitneybowes.com/

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5 ways to outperform in a competitive market

Technology

competitive market

color printing devices

production print services

print engines

production timesintegration

current volume need

better devices

regulatory compliance