inprinting2010-transpromo-infotrends-chrisbondy

TransPromo

Ch i B dChris BondyGroup Director

© 2010 InfoTrends, Inc. www.infotrends.com

InfoTrends Focus

Founded 1991; 70 employees; Offices in Boston, London, and Tokyo

Clients We Serve:Hardware and Software Vendors, Service Providers, Trade Associations, and Targeted Enterprises

Services:Strategy & Planning, Market/Business Development, Advisory Services, Publications, Custom Consulting, Multi-Client Studies, Sponsored Content, Events, Business Development, and Training & e-Learning

Outsourcing & Managed Services

Cross MediaData Analytics

Marking EnginesFeeding/Finishing

DFEsWorkflow

ConsumablesSubstrates

2© 2010 InfoTrends, Inc. www.infotrends.com

Agenda

State of the Business• State of the Business

• Critical Trends

• TransPromo, What is it and Why should I Care?

• Trans-Promo Research Results


The Economy and Changes in The Print Industry• The global economic situation has punctuated

the importance of the effective use of scare resources

• The Economy situation has accelerated the adoption of solutions that effectively manage cost and bring demonstrable valuecost and bring demonstrable value

• Marketing dollars are more scarce and Marketers have a need to quantify the results f ll iof all campaigns

• Consumers are bombarded by a wider array of messages coming from new alternative channels such as mobile and social media

• There is a shift from static marketing pieces with less impact to personalized messages


with less impact to personalized messagesdelivered across a variety of media

Critical Trends


Consumers are “Always ON”!


Social Media is Integral to All Marketing Activities

100 million videos viewed per day on

YouTube

50 million tweets per day on Twitter

YouTube

(and 65,000 new videos are uploaded)

400 million blogs in existence

5 billion minutes spent per day on

existenceFaceBook


3.6 billion images on Flickr

Adding Mobile to the Mix with QR CodesWhat can the recipient do?• Pay a bill• Accept an offer (from a statement or a

direct mail piece)direct mail piece)• Link to a landing page• Provide survey information predicated on

the offer• Provide consumer discounts

Why now? • People have their cell phones with them at

all times• Europe has more than one cell phone for

each person and in the U.S. 89% of the population owns a cell phone most arepopulation owns a cell phone – most are equipped with a camera


More Channels = Higher Responseg p

Average response rate

Improvement overprint-only campaigns

8 7%

8.8%

Print, e-mail, Web landing pages, and

Print, e-mail, and Web landing pages

34%

35%

8.3%

8.7%

Print and e-mail

g p gmobile marketing

34%

28%

7.7%Print and Web landing pages 19%

6.5%

0% 2% 4% 6% 8% 10%

Print only


Source: Multi-Channel Communications Measurement & Benchmarking. InfoTrends, 2008

N = 217 marketers

“Data/Content is King” – Enabling Marketing Efficiency

• Marketers are forced to stretch every marketing dollar and deliver moremarketing dollar and deliver more measured results

• Multi-channel campaigns increase response rates

• Closing the loop/data management

Knowledge

data management

• Campaign dashboard/visualization

Information

Data

• Business intelligencevia data analytics


TransPromo


Traditional Statements are Read but NOT Effective


Transactional Documents: Market Dynamics y

• Mature market, flat volume for transaction mail sent

• e-Presentment and e-payment are increasing

Risk-averse; applications are slow to change

• Significant volume is produced internally (corporate data centers), but outsourcing is also pervasive

• TransPromo is an emerging application with growth• TransPromo is an emerging application with growth

• Focus has been on the high-end corporate market and data service bureaus versus the mid-market – huge SMB

t it f T Popportunity for TransPromo


Advertising Inserts – are often not read!

??


Bills and Statements Get Opened!

98.70%96.3%Bills

79.70%

98.40%

77.9%

95.3%

Coupon packs

Statements

68 20%

72.20%

53.4%

73.1%

Promotional inserts includedwith bills & statements

Catalogues

54.20%

68.20%

26.9%

48.4%

Credit card offers

Addressed mail fromunfamiliar businesses

with bills & statements

26.30%

28.60%

29.6%

0 00% 100 00%

Unaddressed mail fromunfamiliar businesses

Credit card offers

North America (N = 1,067)Western Europe (N = 2,460)


0.00% 100.00%

Source: Trans Meets Promo…Is It More Than Market Hype?, InfoTrends, August 2008Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009

ReachingConsumers

Transaction documents represent billions of customer touch-points – marketers are catching on!p g

The next wave will be targeted Loyalty Programs (acquisition and retention) designed around the natural touch-point of


consumer transaction behavior.

Transactional + Promotional = “TransPromo” is Hot

TransPromoGraphicCommunications

Data Center/IT

Design centricLower-speed output

Combining complex design with complex

Data centricHigh-speed output Lower speed output

Direct MailBrochuresPostcardsNewsletters

design with complex dataHigh-Speed Output

g p pStatementsInvoices401K ProspectusBrokerage Account Information


Information Checks

TransPromo – What is it?TransPromo What is it?

TransPromo is the inclusion of messaging ON transaction documents. While the term suggests “promotional,” the application is much broader.While the term suggests promotional, the application is much broader.

It is more than promotional messaging:

• Trans-Promotional

• Trans-Educational

• Trans-Informational

• Trans-Notification


It’s the “ONSERT” that Works!


Images care of EMC Document Sciences

TransPromo: A Trusted Source

Y Ch h• Your Church

• Your Dentist

• Your Financial Advisor

• Your Bank/Credit Union

• Your Air Conditioning Supplier

• Your Lawn Care Specialistp


Statement Redesign for Audi Financial Services


Humana: Helping Consumers Stay Healthy


InfoTrendsT P R hTransPromo Research


Consumer Respondents

• 3,527 consumer respondents Consumers(N = 3,527 Respondents)

8 countries

300+ respondents from each country

• Guidelines:

Belgium12.0%United States

21.4%

Canada

18+ years of age

Internet-connectedFranceUnited

Canada8.9%

Resides in the Belgium, Canada, France, Germany, Italy, Sweden, United Kingdom, United States

11.7%

GermanySweden

Kingdom11.9%

Germany11.4%

Italy11.4%

Sweden11.4%



Direct Marketer and Document Owner Respondents

Direct Marketers and Transaction Document Owners(N = 1,416 Respondents)

• 1,416 direct marketer and transaction document owner respondents

Belgium6.1%

United States

Canada11.6%

8 countries

60+ respondents from each country

• Guidelines:

France10.5%

32.5%• Guidelines:

Operations in Belgium, Canada, France, Germany, Italy, Sweden, United Kingdom, United States

Germany14.9%

United Kingdom

United States

Responsible for the purchase or development of direct marketing programs (direct marketers)

Italy9.5%

Sweden4.3%

10.7%( )

Responsible for the purchase, development, or deployment of transaction documents (transaction document owners)



Print Service Provider Respondents

• Quantitative research for the United States and Canada

Web-deployed survey to 230 print service providers with operations in the United States and Canada

These print service providers ranged in size, industry, and interest levels toward TransPromo

• Qualitative research in Western EuropeQualitative research in Western Europe

Phone interviews with a dozen print service providers with operations in Western Europe

Significant volume (>20%) in transaction printing/processing

Interviews include various sizes of providers currently d i T P d th h t


engaged in TransPromo and those who are not

W.E.: Consumer Feelings about Receiving TransPromo Documents

I would prefer not to receive documents in this fashion It is an environmentally-friendly alternative that I support

60%

I prefer this method to receiving additional mailings I prefer this method to inserts sent in the same envelope It serves as a more effective communication

40%

60%

20%

0%Total Belgium France Germany Italy Sweden UK

N = 2460 424 413 403 401 400 419


N 2460 424 413 403 401 400 419

Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009

Time Spent Reviewing Bills and Statements: Mail + Online

4 04

4.87

4.12

5Mail Online

3.363.55

4.04

3.26

3.68 3.58 3.64

3.06

4.12

3.06 3.142 833

4

2.47

2.83

2

3

Min

utes

1

0Belgium Canada France Germany Italy Sweden United

KingdomUnited States

N 424 313 413 403 401 400 419 754



N = 424 313 413 403 401 400 419 754Consumers

Transactional Mail gets Read!

• Consumers spend an average of three to four minutes reviewing each statement they receive in the mail

• 20% of consumers spend five minutes or more


Source: Trans Meets Promo… Is It More than Market Hype? InfoTrends, August 2008

Preference for Mail Printed on Recycled Paper

14.1%

100%

It doesn't matter No Yes

6.6%1.6%

3.4%

9.0%

2.8% 2.9%

24.9% 25.2%34.5%

25.4% 23.1% 21.4%

36.2%80%

73 2%82.5%

74.3% 75.6%

7.0% 4.8%

40%

60%

68.6%73.2%

58.6%65.5%

3%

59.0%

20%

0%Belgium Canada France Germany Italy Sweden United

KingdomUnitedStates

N 424 313 413 403 401 400 419 754



N = 424 313 413 403 401 400 419 754Consumers

W.E.: Primary Reason for Contacting Provider about a Bill or Statement

100%

Perceived billing error Unclear transaction informationChange of address or contact details Service cancellationResponse to a promotional message Other

80%

100%

40%

60%

20%

40%

0%Total Belgium France Germany Italy Sweden UK

N = 828 135 103 118 138 152 182Consumer respondents who have contacted their billing / statement provider


Consumer respondents who have contacted their billing / statement provider

Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009

Customer Support Calls Received per Month

4 1%4.0%4.1% 1.6%100%

Mean=1,571 Mean=1,259

16.6%13.6%

6.6% 8.2%4.1%

80%

10,000 or more

52.7% 65 7%40%

60% 5,000 to 9,999

2,500 to 4,999

1,000 to 2,49952.7% 65.7%

20%

40% 1 to 999

0

15.6%7.0%

0%North America (N=241) Western Europe (N=501)



Cost of Call Center Maintenance

Mean=1,571 Mean=1,259

A C $10.50 €10.60

$16 495 50 €13 345 40

Average Cost per Customer Support Call

$16,495.50 €13,345.40per month per month

$160 145 00$160,145.00Euro/yr



Average Number of Pages Per Bill or Statement

1 2 3 4 5 6 to 9 10+

7.5%13.2%7.4%

80%

100%Mean=3.1 Mean=3.8

16.6%

23.8%

7.9% 14.2%

60%

80%

26.6%

26.7%

40%

28.6%

8.2%0%

20%

N th A i (N 241) W t E (N 501)


North America (N=241) Western Europe (N=501)


TransPromo Can Save Companies Money!

1. TransPromo reduces postage costs.

2. It can reduce the volume of customer communications while maximizing overall effectiveness. This means

ll i i i t ditoverall savings in print expenditures through the aggregation of direct mail and transaction documents.

3. Effective TransPromo communications can reduce the number of calls into a call center, as well as call duration.

4. As consumers and operations executives become more4. As consumers and operations executives become more technology-savvy, printed TransPromo communications can be used to promote the acceleration of e-statement delivery. This has further cost and environmental benefits.


e-Communications to Enhance Customer Service


Adding Mobile to the Mix with QR CodesWhat can the recipient do?

• Pay a bill• Accept an offer (from a statement orAccept an offer (from a statement or

a direct mail piece)• Link to a landing page• Provide survey information

predicated on the offerpredicated on the offer


Portion of Direct Mail Spending with External Providers

45 3%50%

37.8% 38.2%

31 6%33.4%

31 1%

39.8%

45.3%

40%

31.6% 31.1% 30.1%

20%

30%

10%

0%Belgium Canada France Germany Italy Sweden United

KingdomUnitedStates

N = 36 104 49 72 48 39 45 279



N = 36 104 49 72 48 39 45 279 Direct Marketers

Direct Marketing Spending by Channel

Print Web Telemarketing Mobile (SMS) Other

9.4% 5.9%

9.2% 15.8%5.1%

80%

100%

31.8%

27.1%

13.6%

60%

44.4%20%

40%

44.4% 37.6%

0%

20%





Top 5 Factors When Selecting an External Provider

North America (N=302) Western Europe (N=267)North America (N 302) Western Europe (N 267)1. Ability to provide a full range of

services from design to mailingQuality

2 Price Price2. Price Price

3. Easy to work with Ability to provide a full range of services from design to mailingse ces o des g o a g

4. Past experience Easy to work with

5 Quality Past experience5. Quality Past experience



Business Value of TransPromo

• Reducing costs – Operational Effectiveness

Print spend

Postage

Call centers

• Making Money – Revenue Growth

Consumers read TransPromo documents

Cross selling and up selling

Customer life cycle management

Transforming operational costs into revenue


sources

Why TransPromo Now?

• Technology advances in inkjet

• Vendors want a new consumable revenue opportunityVendors want a new consumable revenue opportunity

• Competition will drive the market forward

Many continuous feed competitors (and not all are inkjet)Many continuous-feed competitors (and not all are inkjet)

Expansion of high-end cut-sheet color

W kfl fi i hi li ti t d b i• Workflow, finishing, application support, and business development

• Consumers have greater expectations for turnaround time,Consumers have greater expectations for turnaround time, immediacy, relevancy and efficiency

• Expected to be a double-digit growth segment worldwide


Platinum Sponsors Producers

Chicago August 10 & 11August 10 & 11

Corporate Marketing Agencies

Marketing Service Providers


InfoTrends’ European Events

3rd Annual

MoscowOctober 18 – 22October 18 22

BrusselsOctober 27 & 28


Thank You!Grazie!Grazie!

[email protected]


inprinting2010-transpromo-infotrends-chrisbondy

Business

infotrends focusfounded

transpromo t

web landing pages

data service bureaus

corporate data centers

market dynamicsy mature

market hype

print industry