pia leadership summit 2014

1 © 2014 InfoTrends www.infotrends.com © 2014 InfoTrends

Crea%ng Client Value 2014 Print Leadership Summit

Kate Dunn Director June 3, 2014

2 © 2014 InfoTrends www.infotrends.com

Objec%ves

•  Why the Value Discussion is Important

•  Defini%ons of Value •  Calcula%ng the Value •  Next Steps


$0

$40

$80

$120

$160

'89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19

Analog Print

Digital Adver%sing and Promo%on

Digital Print

U.S. Print and Online Adver%sing Revenues ($B)

Disrup%on and Transforma%on

Segments: U.S. Department of Commerce, IAB, InfoTrends

Graphic Communica%ons: A Market in Transi%on


0

100

200

300

400

500

600

2011 2012 2013 2014 2015 2016

Ann

ual I

mpr

essi

ons

(B)

Process Color

B&W

Source: InfoTrends’ U.S. Print On Demand 2012–2017 Market Forecast

Overall 1.1% CAGR 582 B 550 B

Annual Impressions: Produc%on Copying and Digital Prin%ng

-‐5.6% CAGR

14.2% CAGR


8.0 5.7

29.2 33.1

0

10

20

30

40

50

2012 2017

$Bill

ions

Process Color

B&W

$37.2 Billion $39.8 Billion

Print on Demand Market Retail Value of Print: 2012-‐2017

Source: InfoTrends’ U.S. Print On Demand 2012–2017 Market Forecast

Overall 0.8% CAGR

-‐6.8% CAGR

2.5% CAGR


26.6% 22.4%

6% 6%

12.6% 12.5%

31.7% 32.7%

9.7% 10.8%

13.3% 15.6%

0%

20%

40%

60%

80%

100%

2011 2013

Value-Added Services

Wide-Format Digital Printing

Digital Printing

Finishing

Other Conventional Printing

Offset Printing

N = 687

Focus on the Growth Opportunity PSP Revenue by Service


Not Important at All 10.4%

Somewhat Unimportant

12.1%

Neither Important nor Unimportant

32.7%

Somewhat Important 32.3%

Extremely Important 12.6%

Enterprises Want their PSPs to Offer Integrated Marke%ng Services

How important is it for a print services vendor to offer mulX-‐channel integrated markeXng?

N = 896 Source: Understanding Ver-cal Markets: Enterprise Communica-on Requirements; InfoTrends 2012

Nearly 45% of respondents think it’s important for a print

services vendor to offer mul%-‐channel integrated

marke%ng.


One to One Gulfcoast: Helping Non-‐Profits


•  Business will double this year

•  Since the company’s incep%on in 2003, it will have generated more than $100 million in new funds for clients by year end

It’s About Results!


External Vendor Focus

For every $1 spent with external

produc%on vendors, the organiza%on spends $6-‐ $14 on internal processes.

Source: Point Balance, Four Reasons to Use a Marke-ng Asset Management Solu-on


InnerWorkings: Managing the Supply Chain


A Focused, Well-‐ Defined Approach

“InnerWorkings is a global print management provider. We use technology to drive cost savings throughout our customers' markeXng and print supply chain.”

Record Results in Our Industry

• $201.4 million in revenues

• 29% YOY increase • 19% organic revenue growth

Record Results


N = 166 Source: U.S. Produc-on So@ware Investment Outlook, InfoTrends 2013

Which of the following are your most profitable markeXng services?

20.5%

6.6%

7.2%

7.2%

8.4%

9.0%

9.0%

12.0%

18.1%

40.4%

55.4%

0% 20% 40% 60%

We don’t offer marketing services

Other

Personalized URLs

Marketing campaign tracking

Social media advertising

Personalized e-‐mail marketing services

Data cleansing/management

Social media marketing

Custom Web/Storefront development

Personalized, 1:1 print communications

Print related marketing

Most Profitable Marke%ng Services

Three Responses Permifed


Has the Transi%on to MSP Worked?


This?


Or This?


True Differen%a%on


Product Leadership Opera%onal Excellence

Price-‐ vs. Product-‐Based Differen%a%on


Customer In%macy


So What’s The Problem?

Crea%ng customer in%macy the right way requires:

•  A focus (horizontal or ver%cal) •  In%mate knowledge of the niche: Your customer’s business,

its markets, and its compe%tors

•  A different sales approach, calling on different decision-‐makers and using a different sales methodology

•  Universal commitment to the niche by the company −  The enXre company must understand what you do, who you do it for,

and why it’s important


What Are You Striving For?


Crea%ng Value


We Surveyed…

2,010 Small and

Medium-‐Sized Businesses (26 Different

Types)

1,026 Enterprises across

8 VerXcal Markets


1%

15%

17%

18%

18%

18%

19%

22%

33%

37%

74%

0% 20% 40% 60% 80%

Other

Generate leads/demand

Increase brand awareness

Introduce new products or services

Improve business productivity

Enter new markets or geographies

Strengthen relationships with customers/increaserenewals

Reduce and control operational costs

Retain existing customers

Expand existing customer relationships

Gain new customers

Customers are the Top Three Business Priori%es


What are your top business markeXng prioriXes for the next 12 months?

N = 2,010 Small & Medium-‐Sized Businesses Source: Capturing the SMB Marke-ng Automa-on Opportunity, InfoTrends


Most Companies Manage Marke%ng Internally

Yes, we have dedicated employee(s)

53.6%

No, we use an outside service for

all marketing activities7.4%

Yes, multiple employees share the responsibilities

39.0%

Does your business have employees responsible for managing markeXng acXviXes?



Top Media Channels Used to Promote Business

4%

4%

5%

6%

7%

9%

10%

12%

17%

17%

19%

43%

10%

9%

15%

16%

39%

14%

19%

30%

36%

14%

33%

31%

4%

12%

9%

8%

4%

12%

13%

14%

8%

7%

10%

13%

12%

13%

20%

9%

10%

6%

4%

5%

0% 20% 40% 60% 80% 100%

Billboard

Television

Radio

Catalog

Print directory (e.g., Yellow Pages)

Telemarketing

Magazine ads

Newspaper ads or ad inserts

Printed direct mail (e.g., postcard)

Wireless/Mobile (e.g., SMS)

Signage/Point of sale advertising

e-‐Mail

Yes, and use will increase Yes, and use will stay constant Yes, but use will decrease No, but considering use

Do you currently use the following mass media or direct markeXng channels to promote your business?

MulXple Responses Permifed



8.7%

8.2%

7.6%

7.6%

6.0%

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

Print, e-‐mail, web landingpages, and mobile

marketing

Print, e-‐mail, and weblanding pages

Print and web landingpages

Print and e-‐mail

Print only

What is the average RESPONSE rate of campaigns that use the following combinaXons of media channels? (Means)

N = Varies; Base: All respondents Source: Capturing the SMB Marke-ng Automa-on Opportunity, InfoTrends

More Campaign Channels Mean a Beker Response!


Of the people who responded, what percentage purchased or were converted into new business? (Means)

19.0%

16.5%

15.3%

18.3%

16.2%

0% 5% 10% 15% 20% 25%

Print, e-‐mail, web landingpages, and mobile

marketing

Print, e-‐mail, and weblanding pages

Print and web landing pages

Print and e-‐mail

Print only

More Campaign Channels Mean Beker Business Results!

N = Varies; Base: All respondents Source: Capturing the SMB Marke-ng Automa-on Opportunity, InfoTrends


3.9%

9.2%

10.2%

11.3%

11.3%

13.6%

14.7%

17.8%

19.8%

38.9%

61.2%

3.2%

3.8%

10.8%

1.4%

8.4%

9.0%

11.1%

13.5%

12.5%

15.8%

18.5%

35.4%

54.5%

0% 20% 40% 60% 80%

Do not know

Other

Signage/Point of sale advertising

Magazine ads

Online directory

Print directory

Search engine marketing

Social network presence

Newspaper ads or ad inserts

Printed direct mail

e-‐Mail

Company Website

Customer Acquisition

Business Awareness


What are the top media channels responsible for business awareness or customer acquisiXon?

No Clear Difference for Awareness vs. Acquisi%on



Top Challenges When Marke%ng to Exis%ng Customers

0.6%

1.3%

10.7%

11.5%

14.6%

14.9%

15.6%

20.3%

21.9%

23.3%

29.6%

39.2%

41.4%

0% 10% 20% 30% 40% 50%

No challenges

Other

Don't know where to begin

Designing collateral

Finding the right external provider

Personalization of marketing collateral

Lack of expertise

Lack of customer or prospect data

Not enough staff

Measuring results or ROI

Understanding and using new marketing channels

Not enough time

Campaign costs


What are your business’ top challenges when markeXng to exisXng customers and prospects?

Exper%se

Cost Time



How is/will your company’s total spending (be) distributed by the following types of communicaXon?

N = 1,026 Source: Understanding Ver-cal Markets: Enterprise Communica-on Requirements; InfoTrends 2012

Projected Annual Growth

Rate

8.8%

-‐2.1%

1.5%

4.9%

-‐6.2%

Key Findings

•  Mobile is the fastest-‐growing channel, followed by online/web

•  Spending on print is the highest, but this is a declining channel

•  Print remains the largest channel even aqer 2 years, but by a small margin

Communica%on Spending Distribu%on

34.1% 29.9%

25.3% 27.8%

16.2% 16.7%

11.7% 11.2%

10.2% 12.0%

0%

20%

40%

60%

80%

100%

Last 12 Months Next 2 Years

Print Online/Web Video Audio Mobile Other


Growth of Mobile Communica%ons Channel Spending

•  Among all communica%on channels, the mobile channel will experience the highest growth rate in terms of spending.

•  Online/web has the next highest growth rate.

Spending Growth Rates by Channel

Print Video Audio Online / Web Mobile

Educa%on -‐7.3% 7.6% 3.5% 0.3% 9.3%

Financial -‐8.8% 3.1% -‐1.3% 5.0% 17.5%

Healthcare -‐4.6% 5.1% -‐2.1% 5.2% 0.0%

Hospitality -‐8.7% 1.0% 1.4% 6.5% 6.4%

Insurance -‐8.4% 1.4% -‐0.9% 7.0% 13.8%

Manufacturing -‐5.2% 2.0% -‐3.0% 6.4% 4.7%

Retail -‐5.4% -‐4.5% -‐9.3% 9.4% 17.6%

U%li%es -‐1.9% 0.8% -‐2.5% -‐0.8% 8.4%


What percentage of your customer communicaXons or markeXng campaigns fit into the following categories?

Segmented marketing

(One-‐to-‐few) 33.4%

Personalized marketing

(One-‐to-‐one)29.2% Mass marketing

(One-‐to-‐many)37.4%

Audience Targe%ng Approaches



How many different media types does your company use for a typical customer communicaXon/markeXng campaign?

Key Findings •  Average number of media

types used in a campaign: 3

•  47% of printed markeXng materials were linked to online digital channels in past 12 months


Number of Media Channels

One 8.8%

Two 30.2%

Three 36.4%

Four 13.4%

Five or more 3.7%

Don’t know 7.6%


14.8%

15.6%

20.4%

21.2%

25.7%

26.2%

29.4%

31.5%

32.0%

33.9%

0% 10% 20% 30% 40%

Create buzz

Competitors are doing it

Expand my brand beyond products featured in a printedpiece

Experimentation with emerging technology

Add interactivity to traditional media

Capture information

Integrate social media

Boost response rates

Reach a target demographic

Reach a broader audience

What are your company’s top reasons for blending print and digital channels?

N = 378 Respondents who are blending print and digital channels Source: Understanding Ver-cal Markets: Enterprise Communica-on Requirements; InfoTrends 2012


Reasons for Blending Media Channels


How oqen do you use a print services vendor for mulX-‐channel integrated markeXng?

N = 402 Respondents who see the importance of ancillary services Source: Understanding Ver-cal Markets: Enterprise Communica-on Requirements; InfoTrends 2012

Always 11.7%

Omen 35.6%

Some%mes 40.5%

Never 12.2%

Key Finding

•  Print service providers are commonly used for mulX-‐channel integrated markeXng campaigns.

Using Printers for Integrated Marke%ng


Services Model Transforma%on

PSP Model

Agency Model

MSP Model

•  Cunng-‐edge/Trendy

•  Services-‐focused (w/ produc%on partnerships)

•  Strategy/Idea generators

•  Resource/Rela%onship management

• ProacXve • Full service • Cross-‐media

• Value-‐driven • Customer/Program-‐focused

•  Reac%ve •  Produc%on-‐oriented •  Fulfillment

•  Contract/Job-‐focused


Crea%ng Value

•  Capturing an opportunity •  Elimina%ng a pain


How Much Do Companies Spend on Marke%ng?

Type of Company Marke%ng Spend

Consumer Products 6% to 10% of revenues

B2B Companies 2% to 6% of revenues

Companies launching new products or brands or opening up new markets

As much as 20% of revenues

Source: 2010 Chief MarkeXng Officer (CMO) Council Report

Many upscale, high-‐image consumer product brands also spend a significantly greater amount of their revenues on markeXng.


Dissec%ng Spending

At least 50% of companies spend at least 20% of their

markeXng budget on markeXng materials.

Almost a third of companies devote at least 30% of their markeXng budgets to such

materials.


The Real Story

•  50% of the spending associated with markeXng materials oqen results from product obsolescence and acXviXes such as storage, fulfillment, shipping, and inventory management.

•  Only 25% of marketers have performed a comprehensive analysis of the costs and process efficiencies in their markeXng materials supply chain.

•  Only 11% of marketers have implemented new workflow systems to reduce costs and inefficiencies in their markeXng supply chains.

•  The companies that have studied their collateral supply chain found that at least 20% of their spend is lost to obsolescence.

Source: CMO Council Research


Capturing the Costs

Source: Four Reasons to Use a Marke-ng Asset Management Solu-on, G. David Dodd of Point Balance 2011


The Iceberg



Ques%on Answer

How much do you typically spend on markeXng annually?

1,000,000

Then the approximate amount spent on collateral is:

200,000

Probable cost of obsolescence plus acXviXes such as storage, fulfillment, shipping, and inventory management:

$100,000

Quick Qualifier: How Much Pain Might There Be?


Administra%ve Costs: Requests for Marke%ng Materials

Number of Dealers 100

Number of Requests Annually by Dealer 24

Total Annual Requests 2,400

Average Processing Time (Minutes) 25

Total Annual Processing (Hours) 1,000

Annual Base Salary $40,000

AddiXonal Cost Benefits, Taxes, etc. $8,000

Fully Loaded Labor $48,000

Hourly Rate $24.00

Total Annual Request Processing (Labor Only)

$24,000

Quan%fying the Pain



Miami University

Campus visits increased by 32%; Incoming class

enrollment exceeded goal by 31%

Source: PODi


Current Enrollment

Your Ins%tu%on Percentage Using Miami Univ. Best Prac%ces

Percentage Increase

Inquiries 21,027

Applicants 1,854 8.8%

Admits 889 47.9%

Visits 670 75.3% 884 32%

Enrollees 311 46.4 407 31%

University Recrui%ng


Current Enrollment

Typical Ins%tu%on Percentage Using Miami Univ. Best Prac%ces

Percentage Increase

Inquiries 21,027 21,027


Admits 889 47.9%

Visits 670 75.3% 884 30%

Enrollees 311 46.4 407 31%

Business Case (1)

Tui%on Avg Discount Rate

Revenue Per Student

Total Revenue

311 $42,000 35% 27,300 33,961,720

407 $42,000 35% 27,300 44,444,400

Revenue Increase 10,482,720

$10,478,720


Current Enrollment

Typical Ins%tu%on Percentage Using Miami Univ. Best Prac%ces

Percentage Increase

Inquiries 21,027


Admits 889 47.9%

Visits 670 75.3% 871 30%

Enrollees 311 46.4 407 30%

Business Case (2)

What’s possible here using the same best prac%ces?


•  Research gives you an idea of the value −  TransacXon amount

−  LifeXme value of a customer

−  Cycle Xme/personnel involved

•  Conversa%on uncovers… −  Lead conversion rate

−  Length of the sales cycle

−  Leakage points

−  Current goals

Rep calculates value of moving the needle

The Results


•  Early in the sales cycle, it’s about genng the prospect excited about the possibili%es. −  Use case studies to calculate a possible return.

•  Later in the sales cycle, it’s about what is realis%c. −  Limit projecXons once you can show a reasonable return.

What’s Good?


ConversaXon with Target ExecuXves

Share Insight

Start a two-‐way conversaXon

Confirm that insight Is intriguing

Suggest the process to vet the opportunity

Confirm that you have a mobilizer

Qualifying the Suspect: Part 1


Mobilize the Team

QuanXfy the value or pain

Develop a business case that projects a realisXc return

Understand what happens if they don’t buy or don’t buy from

you

Confirm your credibility

Qualifying the Suspect: Part 2


Keys to Success

•  Figure out your differen%a%on strategy −  Value you provide, who you provide it for, why they should choose you

•  Research your account and deliver insight designed to introduce an opportunity to the prospect.

•  The needs analysis will enable you to confirm your assump%ons or collect account-‐specific informa%on.

•  You are not promising anything; you are genng the prospect excited about a poten%al opportunity. You have the rest of the sales cycle to vet the opportunity and develop the actual business case.

•  Consider both the transac%on and life%me value for your customer when developing your insight.


Thank You! [email protected]

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