Archive for the ‘Industry Research’ Category
Five Key Considerations for Offering Mobile Marketing Services
Thursday, January 12th, 2012As you’re likely well-aware, the mobile channel continues to experience significant levels of growth. According to the CTIA Wireless association, mobile subscription penetration in the United States exceeds 100% of the population; many people own and use more than one mobile device. Furthermore, CTIA estimates that that close to 30% of U.S. households are “wireless-only,” meaning they subscribe to wireless phone services but not landline services (myself and many of my friends are part of this population). The pervasiveness of mobile technology has led to increased time spent by consumers in the mobile channel, making it a prime platform for marketing and advertising.
To that point, research firm eMarketer estimates that U.S. mobile ad spending topped $1 billion in 2011, and expects spending in this channel to grow to over $4 billion by 2015. While various forms of mobile marketing have been around for well over a decade, only in the past few years have marketers started dedicating a more substantial percentage of their budgets to mobile in conjunction with other shifts to digital spending. Despite growth in these newer channels, it is important to remember that marketers are still dedicating a substantial percentage of their budgets to traditional media, including print, television, radio, sponsorships, and much more. Even so, marketers are focused on return-on-investment more than ever before, and they are constantly looking at ways to make their marketing across all media types more measureable and impactful.
In particular, a slew of mobile technologies are now being employed to integrate print and other media types with mobile and online channels, including mobile response codes, short code prompts for mobile messaging, augmented reality, and much more. InfoTrends recently completed a study entitled Mobile Technology: Making Print Interactive, which investigates how mobile is being integrated with print and other media types. In this study, we captured consumer, marketer, and service provider perspectives to understand how mobile technology can be effectively utilized within traditional, offline media to drive audiences to engaging online experiences.
One key finding from our study highlights that, especially for mobile response codes, marketers are turning to their print service provider partners to help them create, deploy, and manage integrated mobile campaigns. Print service providers have a tremendous opportunity to develop domain expertise in the mobile channel through integrated campaigns and programs, but they need to make sure they have the right strategy, provide the right mix of services, and have the tools and technology to support their efforts. Below are some key considerations for service providers looking to build out mobile marketing services:
- The mobile channel is still relatively new for many marketers and advertisers, and they are looking for guidance how they should approach mobile in a way that will meet their goals and resonate with their target audience. Providers need to take a consultative approach to mobile, capturing key characteristics of the client, its products and services, and the audience it is trying to reach to make recommendations. For instance, mobile apps are hot right now, and many clients may ask for them, but it’s up to the service provider to help guide clients to solutions that fit their specific needs… and then execute appropriately.
- Understanding how to design, deliver, and manage digital content designed for mobile devices is a requirement, not an option. There have been too many times where a QR code is slapped on a printed piece that links to content that doesn’t render well on mobile devices, ultimately delivering a bad user experience. In our study, we found that once consumers interact with mobile response codes and other mobile technologies, they tend to interact again and again. The end-to-end user experience is a critical component of any mobile marketing campaign; a good experience will help drive future interaction and engagement in the mobile channel.
- To that point, when you’re getting into mobile, it is important to note that a wide range of tools and technologies are on the market that help companies create and deliver mobile content, generate and track mobile response codes, perform campaign management, and much more. In other words, don’t start from scratch! Many software platforms allow service providers and agencies to whitelabel their solutions to use as the backbone for their integrated mobile campaigns. Technology from the likes of 3Seventy, Blink Capture, iFlyMobi, NetBiscuits, Print2D, ScanBuy, ShareSquare, SumoText, Tatango, and many others can be utilized to help power your mobile marketing services.
- As mentioned, marketers don’t want to have to wait for sales figures to see if their marketing investment paid off. They need actionable insights that can help them optimize campaigns in real time to have maximum impact. As such, measurement and optimization are table stakes when it comes to mobile marketing (and digital marketing in general). Mobile technology can provide marketers with a wealth of data, including location information, which can help personalize content and also influence campaign optimization to ensure that campaigns meet defined objectives.
- Finally, don’t just limit yourself to mobile response codes. The ease at which people can generate QR codes has been a catalyst for substantial growth in marketers and service providers integrating them across different media types. Nevertheless, mobile message marketing, mobile advertising, and more are becoming much easier to get involved with; providers need to consider these types of services when developing their mobile services strategy.
Mobile will undoubtedly continue its upward trajectory in terms of adoption and share of ad spend. Service providers need to, at a minimum, investigate if and how they should include the mobile channel within their existing suite of product and service offerings. While the aforementioned considerations only scratch the surface, they can help guide you and your clients to success with mobile.
Has your company expanded its service offerings to include mobile marketing and advertising? Share your experiences and your own key considerations in the comments!
How To Apply Macro Trends To Your Own Career or Company
Wednesday, January 11th, 2012I’ve been a fan of “trendwatching” for a long time. For example, check out their “12 Crucial Consumer Trends for 2012” here.
Of most immediate significance to marketers would be the last paragraph of the landing page. This section offers readers – and marketers – four ways to apply consumer trends. In other words, here’s the lens marketers and fundraisers need to filter macro trends into on-the-job action.
Consider how the trend can:
1. Influence or shape your company’s vision.
2. Inspire a new business concept, an entirely new venture, or a new brand.
3. Add a new product, service or experience for a certain customer segment.
4. Speak the language of those consumers already ‘living’ a trend.
To refine our individual efforts even further, trendwatching offers “15 Trend Tips” that specify practical, contextual ways to use trends data to shape your own marketing program.
My favorite strategy? Don’t worry about timing or life cycles or regional suitability or [any confining feature] … Simply look at trends as opportunities, not threats.
How else can marketers integrate macro trends into every day situations? How about working trends data into the conversation at professional gatherings or planting predictions as a fertile seed in brainstorming with colleagues?
Personally, I’m drawn to the potential of trend No. 6 on the 2012 list — aiming at the “bottom of the urban pyramid.” This vantage point envisions the under-tapped potential of “hundreds of millions of lower-income CITYSUMERS” who represent a new market for many products and services. Make this one work and 2012 could trend to the terrific.
Happy New Year!
Looking for a More Lucrative Revenue Stream?
Tuesday, January 10th, 2012A recent InfoTrends study entitled The Evolution of the Cross-Media and Marketing Services Provider reveals 58% of the 280 print service providers surveyed are offering cross-media services. There’s no doubt that the cross-media market is dynamic, growth-oriented, and a major contributor to the future of the printing industry.
The marketing executive is the key decision-maker in cross-media services. These marketers are facing a number of challenges in the transition to cross-channel marketing, from strategy to design and deployment to tracking and measurement. The sheer scope of the cross-channel marketing model, and the new innovations that continue to appear, make it difficult for marketers to keep up.
The opportunity is that marketers are reaching out to their traditional print service provider and agency partners for assistance. During an October 2010 study entitled Capturing the Cross-Media Direct Marketing Opportunity, InfoTrends surveyed more than 500 marketers to find out answers to questions such as: What selection criteria are essential to the marketer? How does that service provider move to the top of the list so they can participate in the more lucrative marketing value chain and the incremental digital print revenue associated with cross-media services?
You can download the full white paper for free here. (Click in the bottom, left corner). Find out the answers to what Marketers are looking for and how YOU can participate in the lucrative cross-media revenue stream!
Wake Up For Printers
Tuesday, December 13th, 2011My first reaction after listening to Dr. Joe Webb’s economic webinar last week was to go out and slit my wrists. The forecast for the economy in general continues to be poor and for print there seems to be no hope.
- GDP is still sluggish
- 2012 unemployment to “improve” – for the wrong reasons
- CPI “moderating” – but prices too high when real wages keep falling
- 2011 Inflation Adjusted Print and Print Services Shipments continue to be at or below 2010 and lowest in 5 years
- Forecast for US Commercial Print Shipments from 2011 to 2017 by WTT ERC drops from $85 B to $ 52 B
However, when I thought about many of the companies I know in the industry, they continue to actually thrive and not just survive, so what is their secret and how do we increase the number of companies being successful in the industry?
We all need to realize that continuous change is going to be a part of the way we do business for the near term, and will be required for long term survival. We depend on technology, and the equipment and software rate of change continues to increase. Channels and methods of communicating are expanding, and customers’ preferences evolving, and after all, we are really in the communication business.
Think about the conservative banking industry, which took a long time to move from personal banking to ATM’s and online services, and now have gone mobile, allowing checks to be deposited from a smart phone by taking a picture. Balances can be checked, and even transfers from account to account take place any time and from anywhere. The successful companies I know and read about are listening to their customers and are open to modifying their business models to accommodate customer demands. This is not a surefire solution and certainly not easy, as it means moving from our areas of comfort and experience.
What I think the industry needs more than anything now is to find ways to help each other make the industry strong, and to establish networks and resources to accelerate change. Companies should focus on customer service, putting the customer needs first, and find ways to diversify and differentiate themselves as partners in selective service areas complementing their core offerings. Companies and owners need to choose an area of expertise, and then utilize all the resources available including supplier expertise, associations, and consultants to fill in gaps and build upon their own expertise. Organizations need to resist the temptation to do everything themselves and build partnership relationships with other service providers in providing a complete solution set.
As we end this year we should not view the position as hopeless but rather recommit ourselves to working together and to embracing the change around us. Let us each and every one commit ourselves to staying relevant to the changing needs of our customer base. As General Eric Shinseki, Chief of Staff, U. S. Army said “If you don’t like change, you’re going to like irrelevance even less.”
Looking to grow your print business? Visit MyPressGo for your personalized business development program created by and for digital printers.
Services and Customer Focus Together Make Your Company More Valuable
Tuesday, November 22nd, 2011Two things I read last week hit me with a one-two punch: first I read about Warren Buffet’s investment in IBM, and then I read information from a Gartner report on leveraging customer loyalty.
The AP article on Buffet’s investment says: Warren Buffett said Monday that his company has spent $10.7 billion to buy more than 5 percent of IBM’s stock this year, a surprising move by the billionaire investor who has long shied away from investing in high technology companies.”
Why the change is a kicker!
“Buffett has long refused to invest in high-tech companies because he has said it’s too difficult to predict which technology businesses will prosper in the long run.
“But he said he recently realized his view of IBM was wrong based on what he read in the company’s annual reports and what he learned by talking to information-technology departments at Berkshire subsidiaries. He said he should have realized years sooner that hardware is no longer the heart of IBM’s business.
“”Now they’re very much a services company, and they’re very intertwined with their customers,” Buffett said. And he said IBM’s customers are reluctant to change once they start working with IBM.”
Now for the Gartner quote on loyalty and customer experience:
“”I don’t think it’s ever too late,” said Adam Sarner, principal research analyst with Stamford, Conn.-based Gartner Inc. “Long-term loyalty initiatives depend on building trust and affinity. The more relevant you are to the customer, the more likely they will be loyal to you.””
So what does this mean to us in the world of Print, or Print and Mail? What can we learn from these two seemingly unrelated pieces of information?
For some time now, everywhere we turn we see studies, reports, and market recommendations about how moving from a Print Service provider to a Marketing Services provider is the way to expand and grow our business. However, it is certainly a complex transition to make, and maybe even too costly. It is hard to figure out where to begin and even if to begin.
What I take away from the Gartner information is that for our industry, and for us as companies or individuals, to compete and succeed we must stay relevant to our customers. Communication channels and technology are changing fast, and some say Print, and Print and Mail are becoming irrelevant. We need to adopt a customer-centric view and prioritize discovering what our customers need, and change our organizations to meet those needs. We are experiencing changes, but so are our customers. There are new regulations and changing demographics impacting how our customers communicate to their customers. We cannot afford to take a product or technology only view, and ignore the changes impacting our customers. We must stay relevant to them.
My take away from the Buffet article relating to our business and our industry is that some very smart investors have stayed away from high tech companies because of the difficulty in picking a product or technology with long lasting impact. They are instead placing their bets on companies that are service providers because a good service provider becomes very involved with their customers and it becomes difficult for the customer to change. The technologies and the tools supporting our industry in producing communications have never been more widely varied and in flux. However, if we focus on the needs of the clients and their communication requirements with an outside-in view instead of inside-out, we, like the giant IBM, can change how we are perceived and increase our value, longevity, and profitability.
So in the end what does it mean? Listen carefully to the clients, learn and understand their needs and even what is driving those needs, and then no matter what you call it, offer service solutions that meet those needs.
Are you interested in learning how some printing companies have accomplished just this? Visit OceWow to watch best practice videos. Watch as we highlight what makes print operations like i3Logix, Yurchak Printing Inc., and Ideal Printers Inc. successful.
Newmark Print: Digital and Eco-Friendly
Monday, November 14th, 2011Newmark Print is one of the premier full-service commercial printers in the Denver area, providing turnkey corporate printing, mail, distribution, and digital media services. Its services include one- through four-color sheet-fed printing; specialty substrate printing; one- through four-color digital offset and variable data printing; and sophisticated prepress, bindery, kitting, direct mail, and fulfilment. Founder and President Aquiles LaGrave stated, “In 2006, I moved an old banged-up press into a garage in Denver. My dream at the time stretched no further than putting in a full day’s labor, and was borne out of my love for the printed word and ink pressing onto paper. Today, Newmark Print is a solutions-driven digital offset imaging and mailing services company in the Rocky Mountains region. Running two shifts daily, our employees oversee an operation that has over 250 years of shared experience. We run work on our five digital presses, fulfilling tens of thousands of orders and mailing tens of millions of pieces yearly as far afield as Asia, or as close to home as your own mailbox.”
CEO Jim Albany noted, “We have always been a digital shop. We service a myriad of industries and handle extensive direct mail campaigns, newsletters, and label work. In addition, about 25% of our business comes from being a trade printer. We work with other providers to supplement their digital capabilities. We leverage the Océ VarioPrint® 4000 for our black & white work. It has been a real workhorse for us. We also have a Canon imagePRESS C7000VP from Océ for digital color work.”
The environment is very important to Newmark. LaGrave explained, “The commercial lithographic printing on traditional offset presses is an incredibly wasteful and dirty process, regardless of the types of ink you use. Whether it be during set-up, clean-up, or imaging, traditional offset presses waste incredible amounts of paper, chemical solvents, and energy before the first deliverable sheet is even printed. This means that traditional offset outputs ‘Volatile Organic Compounds’ (the stuff responsible for global warming) at rates exponentially higher than that of new offset technologies. This was a driver for our focus on using digital technologies.”
CEO Jim Albany reported, “Instead of a traditional offset press, Newmark chose to invest in print engines that are a quantum leap ahead of older technologies in terms of quality and direct environmental impact. Our state-of-the-art digital printing technology offers offset quality while increasing energy efficiency, dramatically cutting down on waste, and eliminating the chemical baths associated with traditional offset.”
Beyond that, most if not all of Newmark’s paper stock comes from non-bleached, post-consumer recycled paper and/or from renewable resources produced on farms as close to its warehouse as possible. The company refuses to use paper from any company that does not comply with the highest standards of clean air and water or aim to create a truly sustainable product.
Albany concluded by saying, “In the end, engaging in sustainable business practices are not about buzzwords, marketing, or image. It’s about creating a world where we work to first limit, then eliminate the negative ways in which we impact it and reduce the strains we place upon out natural resources. This is why we do it, and why we invite you to engage in a conversation with us about the steps we are taking to help that future become a reality.”
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Exploring Opportunities with Small and Medium Businesses
Tuesday, November 1st, 2011While many companies compete to do business with large companies that can deliver sizeable long-term contracts for print and marketing services, a trend has emerged over the past few years related to targeting small and medium sized businesses across a wide range vertical markets. Many point to providers like Vistaprint on the print marketing side and Constant Contact on the digital marketing side to paving the way for the so-called Long Tail of services for SMBs.
Indeed, by offering self-service tools and a broad array of vertically-focused templates, these companies have grown tremendously and their services are used by millions of businesses worldwide to do everything from buy business cards and manage e-mail newsletters to launching full-blown direct marketing campaigns. While we often talk in terms of business-to-business (B2B) and business-to-consumers (B2C) models, these types of services have blurred these lines by making businesses buy more like consumers, while keeping the systems open enough to even attract consumer users.
Why are these services popularized and still growing? According to the Small Business Association, there are over 27 million small and medium businesses in the United States, accounting for between 60% and 80% of all U.S. jobs. SMBs are typically characterized as establishments with fewer than 500 full-time employees. Thus, the market opportunity is tremendous, even if you are only able to reach a fraction of SMBs in the country. The power and flexibility of the Web, and in the case of Vistaprint and other online print businesses, the power of a highly-automated production environment, have enabled companies to service large volumes of small orders, something which is becoming more common even in larger organizations.
InfoTrends saw this trend becoming prominent and in 2009, conducted an in-depth study on the topic entitled Capturing the SMB Business Communication Services Opportunity, which surveyed over 2,000 small and medium business across 13 major vertical markets to understand how these companies were utilizing some of the very services just mentioned. We found that just like larger companies, SMBs were diversifying their marketing mix, with traditional media still being an important component but also heavily emphasizing the use of the Web and e-mail to reach their target audiences. Social media was also increasing in importance. At the time, 32.1% of SMBs indicated using Facebook to promote their businesses, while 16.9% indicated using Twitter to do the same. We hypothesize that these numbers have increased substantially in just the last few years.
Furthermore, we found that SMBs had a preference for a “one stop shop” type of experience for printing needs, and we feel that also translates into marketing services, as well. There are a number of vertically-focused services and service providers on the market that cater to a specific set of small and medium businesses. For instance, GuestEngine and Fishbowl provide turnkey marketing services and tools to restaurant owners. Demandforce originally focused on automotive services and dentists, but has expanded its marketing platform to personal services and other healthcare specialists. SharperAgent provides self-service, cross-media marketing campaigns to independent real estate agents, and was recently acquired by real estate software developer Market Leader.
These types of vertical-focused platforms are the next step in the evolution of SMB marketing services. InfoTrends is referring to them as SMB marketing automation services, as many of them aim to automate various aspects of the marketing process for companies while tailoring the services to meet the intricate needs of a particular market. Focusing on one or a particular set of vertical markets also equals more replicable applications. We are currently conducting a follow-up study to our 2009 research on this topic with a study entitled Capturing the SMB Marketing Automation Opportunity, which will be sure to glean valuable insight into how this market continues to evolve.
As it is often said, small and medium businesses are the backbone of the U.S. economy, and they want to succeed and be effective in their marketing just as much as a large enterprise corporation does. Through the power of the Web, many SMBs now have the tools to market smarter. Nevertheless, there is always room for improvement and plenty of opportunity exists for service providers that want to take on the task of making print and marketing services more effective for a particular market.
Simplicity Begins With Ugly Pictures
Tuesday, October 25th, 2011Several years ago, Rob Carter, CIO of FedEx, looked out at the web of mind-numbingly complex systems around the company, and knew they were not sustainable. Some came from mergers and acquisitions, some were developed internally, and all were “necessary” to various business silos around the company. He knew it would be a tough job to demonstrate the seriousness of the problem, gain the support of business executives, and create urgency. In a “Mastermind” interview at last week’s Gartner Symposium ITxpo, Mr. Carter spoke about the transformation of IT at FedEx.
The difficult challenge he faced captured my attention, especially his comment that “I’m a big fan of ugly pictures”, to explain complex problems. From experience, I am a big proponent of mapping processes, (which generally results in a pretty ugly picture), as a basis for identifying and prioritizing opportunities for business improvement, as well as being a catalyst for generating creative solutions and high-level support for resources. Would the “ugly pictures” help Mr. Carter to show all the business executives at this very large organization the ramifications and future consequences of continuing down their silo’d paths?
The “ugly pictures” he created were maps of the spaghetti bowl of the entire FedEx IT infrastructure, including the total counts of all the applications, platforms, databases, HR systems, interfaces, tracking entities . . . you get the idea. He used the attention-getting ugly pictures and compelling stories behind them to get agreement and support from the top that a lot of time and money were necessary investments to avoid the time bomb lurking in the increasing system complexity.
FedEx proceeded to create a completely new IT strategy by “. . . decomposing the business into foundational services. Who is a customer? What is an address?” All the businesses had their ideas of an “address”, and had their own address databases, so instead of “knocking heads” trying to choose which of the existing systems is best, the company started over. They identified and solved for 22 core services, such as label services, address services, and location services, that really matter to the “simple” business of “picking them up and putting them down”, as Mr. Carter described their transportation business. Over time, interfaces fell away, some apps were no longer necessary, and a simpler, services-focused IT infrastructure resulted.
Have you or someone in your company created your own “ugly pictures” to help to re-focus, and simplify systems or processes? What did you focus on? What were the results?
Complexity a Top Challenge for CMOs
Wednesday, October 19th, 2011Two weeks ago on The Digital Nirvana, I covered the DMA2011 conference & exhibition, highlighting how DMA is making a clear shift to embrace more digital, real-time forms of media and marketing. It’s clear that these areas are where marketers are gravitating toward. While print is still an important component in a more diverse marketing mix, it is becoming a much more targeted touchpoint in a broader, more complex marketing lifecycle.
According to a recently released study by IBM, complexity is a top challenge for the world’s CMOs, largely driven by the explosion of data, social media platforms, the proliferation of channels & devices available, and the shifting nature of consumer demographics. For this study, IBM conducted face-to-face interviews with over 1,700 marketing executives from around the world as part of series on understanding C-level challenges and opportunities. The resulting report, entitled “From Stretched to Strengthened”, paints a picture of chief marketers that need to do more with less, deal with technology on a more intimate level, and ensure that the marketing strategies and tactics they use are effective and measurable.
Regarding the topic of complexity, IBM found that CMOs face a a “complexity gap”; almost 80% of CMOs believe that the world will become more complex over the next five years, but only 48% feel that they are prepared to handle this increase in complexity. Other important insights from the study include:
- CMOs and their marketing organizations are making strategic decisions based on broad market information versus information from individual customers. For instance, 74% of CMOs reported using customer analytics to understand their individual customers, but other sources like consumer-generated reviews, third-party reviews/ratings, and online communications fell below the 50% mark. Marketers need to be more customer-focused, and leveraging these types of data sources can help them do that.
- Technology is a much more important factor in marketing organizations these days, but there are two primary barriers to leveraging technology more effectively: cost and lack of ROI certainty. Furthermore, end-user skill sets and marketing’s alignment with IT are key concerns for CMOs looking to make greater use of technology.
IBM, of course, has made significant investments in acquiring data and marketing technology providers over the last few years, including Cognos, Coremetrics, and Unica, so this research fits quite nicely into the company’s narrative of helping marketers conquer some of these challenges through IBM’s technology. That being said, this also means that there is a substantial opportunity for service providers to help marketers solve some of these problems by utilizing data, making marketing more measurable, and ultimately simplifying the complex nature of this new world of marketing and communications. What are you doing to help your clients simplify the complex while driving strong return on marketing investment?
“Speculating on Print’s Longer Term Future”
Monday, October 17th, 2011I came across this great article last week in the PINE newsletter written by Dr. Ronnie H. Davis, Vice President and Chief Economist. The article offers speculation on the future of print and print markets – something we all wish we could look into a crystal ball to see.
We tend to talk a lot about marketing service providers and how they are critical to the future of print. But this article presents an idea discussed less, especially on this blog. The article states that print logistics – things like packaging, labels, wrappers, and product user manuals – is the only industry segment not susceptible to competition from digital media. Though still a relatively smaller part of total industry sales, a series of graphs illustrates how print logistics sales have increased the most over the past 10 years and the number of print establishments who specialize in logistics has decreased the least when compared to other print segments.
Perhaps this is one untapped area of opportunity for the printing industry. Could your operation capture some of the print logistics market?
Looking for other ideas to help grow your business? Check out the only business development program created by and created for digital printers.
A Tangled Web: USPS, FedEx, UPS
Tuesday, October 11th, 2011I drove past my local post office yesterday morning, one that is not closing, as far as I know, and noticed a FedEx drop box about ten feet from the main entrance door. It was clearly on USPS property. Or rather, on my property, and your property. I never noticed it before, in the way that many things that are a little out of place are invisible until you need them, or your brain has a spare moment and recognizes them. So as I ran my errands, I arranged to pass a couple of other post offices and found the same thing –FedEx drop boxes lined up next to the Express Mail box and regular USPS mailboxes.
This reminded me of our collective reactions at shows like Graph Expo as the major equipment providers, many with competing hardware or software or services offerings, began to populate each other’s booths as part of “solutions”. Often we did not know whose booth we were in. At the time, this blew our minds.
Of course, there are collaborations – or contracts – between the USPS and the private package delivery carriers already in place. The USPS Global Express Guaranteed service is the USPS’s “fastest international shipping service with transportation and delivery by FedEx Express”. And UPS Returns Flexible Access uses the USPS Parcel Return Service combined with UPS’s own delivery network.
These collaborations appear to leverage the strengths of each organization. The USPS, however, with its monopoly, (or responsibility), for First Class Mail and Standard Class Mail, is left with the less profitable deliveries of the carriers’ packages in out-of-the-way locales. FedEx and UPS are clearly dependent on the USPS for final delivery and pickups of packages in remote areas that are, of course, routes covered by the USPS.
The USPS must continue to focus on performance improvement in its core areas of responsibility – First Class and Standard Mail, but it’s time for the USPS to start thinking about “solutions”, and “collaborations” in the true sense of those words, to help promote its own sustainability instead of mere survival through cost-cutting.
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HMSA: A Healthy Approach to Customer Communications
Monday, October 3rd, 2011Hawaii Medical Service Association (HMSA), an independent licensee of the Blue Cross and Blue Shield Association, is a reliable name in Hawaiian health care. Established in 1938, it is the largest and most experienced provider of health care coverage in the state. Over half of Hawaii’s population has chosen HMSA for their coverage.
HMSA’s mission is to provide quality, affordable health plans, employee benefit services, and work site wellness programs. HMSA also offers a variety of programs, services, and support to help improve the health and well-being of its members and community.
In the complex and dynamic world of health care, nothing is more important than high-quality, effective communications about subscriber benefits. Assumpta Rapoza, Director of Enterprise Risk Management for HMSA, clearly understands the importance of ensuring clear communications about benefits for subscribers. Rapoza stated, “Quality communications are essential for
customer satisfaction as well as the retention of a loyal customer base.”
Clear Messaging to Drive Loyalty
With health care on everyone’s agenda, HSMA wanted to effectively communicate the true value of the individual’s health insurance policy. The company decided to create an annual cost savings report that raised the subscriber’s awareness of the actual costs for medical procedures and
medications, the amount covered by HSMA, and the resulting financial benefit.
According to Rapoza, “If the subscriber went to the pharmacy to pick up a prescription, he or she typically didn’t know the actual costs and the HMSA benefit. We wanted an agile solution where we could customize communications based on the specific member profile. We were seeking tools that would enable us to create personalized messaging for each subscriber in the form of an annual summary report.”
Rapoza continued, “We needed to push out the messaging. We knew that we wanted to mail out customized statements. While electronic delivery is a more costefficient way to deliver information, we are cognizant that a high percentage of our membership still prefers paper.”
The Solution
HMSA leveraged Océ’s Technology & Software Support (TSS) Solution Development Manager and Systems Consultant resources, its existing investment in Océ digital print technology, upgrades to its Océ PRISMAproduction® workflow software, as well as the GMC PrintNet Variable Data Composition software to design a solution for its annual benefits summary statement. This combination enabled HMSA to design, compose, produce, present, manage, and automate printed documents with individualized targeted messaging that was HIPPAcompliant. The system design also needed to accommodate production in print and electronic formats, created by PrintNet. Rapoza noted, “The end-result was a customerfriendly communication that clearly articulated the value that HMSA was delivering to its membership.”
To read more articles like this, visit www.OceWow.com and download the September Newsletter.
Cross-Media Services: It Takes Marketing and Business Development Focus
Monday, September 5th, 2011We all know that marketing is about the strategies and tactics you use to identify and cultivate the market for your products/services. The degree of importance can vary based on the industry, but it’s hard to think of any businesses that can survive without at least thinking about how to grow demand for what they’re selling.
Firms that are successfully delivering cross-media marketing services are investing time and resources to marketing and business development. Savvy executives are pursuing radical new approaches to change up their organizations. They are getting their companies to concentrate on developing new revenue streams from new products and services, while optimizing income from existing lines through innovative marketing and the rapid exploitation of changing customer needs and tastes.
The Facts
InfoTrends just completed a study entitled The Evolution of the Cross-Media and Marketing Services Provider. The study surveyed more than 280 print service providers to understand the current state of cross-media and the evolution taking place in the graphic communications market. The first key message is that service providers as a community understand the critical importance of getting into cross-media services. Of the 285 total respondents, 58% are currently offering some level of cross-media services.
Furthermore, nearly 87% of print-for-pay respondents were either offering services today or had plans to start offering them within the next 24 months.
These print service providers understand that print is still a very relevant medium, but they have also acknowledged that the communications channel has changed dramatically and altered the role of print. In turn, print service providers must transform. Print used to be the only tool in the box, but now it’s just one of many integrated services in the marketing solutions mix. There is clearly a good understanding of the technologies available today to connect print with new media options, so printers can take advantage of all cross-media channels and help customers market smarter with relevant 1:1 content.
Getting There Takes Marketing Focus
Marketing needs to be a core concern in any business. When it comes to running a successful business, marketing is often the cornerstone for driving results. Firms that offer cross-media marketing services were more likely to cite a focus on sales, marketing, and business development when asked to describe their primary area of responsibility. The critical message is that success in cross-media requires leadership with a focus on marketing and new business development.
Want more? Visit www.OceWow.com to download the InfoTrends white paper The New Value Add Equation!
How to Wow Your Customers with TransPromo
Monday, August 29th, 2011Putting the Wow in any offer requires understanding and delivering value. If you want to understand the value of TransPromo, you need to look at it from a few different perspectives:
- What does marketing (your customer) value?
- What creates value for the organization producing the document?
- What does the end-recipient of the document (your customer’s customer) value?
- If you can understand and deliver value for all three of those groups, Wow! What an offer!
TransPromo, which involves leveraging transaction data to deliver relevant, personalized customer communications, provides this opportunity. The capability to add relevant marketing content to transaction documents, such as statements, invoices, and electronic payment notifications, is tremendously valuable to marketing because it allows the marketing budget to be used more efficiently and, in many cases, more effectively. For example, TransPromo can:
- Replace direct mailings to customers by leveraging campaign content on the transaction document
- Reinforce and promote campaigns delivered via other channels (see our new ad on MTV! Visit our website for the latest discounts!
- Generate improved response rates and develop stronger customer relationships by making offers that are relevant to each reader and delivering “point-of-need” content triggered by customer data
Relevant offers have been shown to increase response rates by 300% over those that are simply personalized, according to research conducted by PODi. Similar studies conducted by the Rochester Institute of Technology (RIT) indicated that personalization alone can boost response rates by 44% over static communications, while personalization plus color can take response rates up 135%. When campaigns are personal and relevant (defined as one-to-one content) and produced in color, response rates increased by 500% over static — meaning that relevance provides a bump of 365% over personalization and color alone. Transaction documents provide the customer data that enables relevant campaigns — and relevance delivers stronger response rates.
While TransPromo is usually positioned as a solution for the marketing folks because of its proven ability to increase response rates, decrease campaign costs and shorten campaign cycle times, it has tremendous value for print production operations as well. Print service providers and in-plant printers maximize profits by streamlining document processing to the nth degree (or to the sixth sigma if you prefer.) This means maximizing the “up time” of all equipment and simplifying warehouse operations. TransPromo enables many of these benefits in a black and white environment — and offers even more Wow when you add color. With TransPromo:
- Inserts can be turned into “onserts.” This avoids batching mail to fit selective inserter limits and can allow mail to be manifested, potentially reducing postal spend and bypassing physical presorting machines
- Inventory management of physical inserts and setup of inserts on intelligent inserting equipment can be eliminated, increasing up-time for inserters and reducing storage and handling costs
- The relevant messages will also be delivered online for your e-presentment clients (which is not usually the case with inserts)
Printers are also happy to add another profitable service area to their bag of tricks with the ability to manage and report on campaign messages. While marketing departments have many tools for managing campaigns on other channels, few have extended their technology to support TransPromo. Providing the ability for your customers to leverage their existing campaigns and digital assets on the transaction documents you produce for them has the added value of deepening ties with marketing and making your services more “sticky.”
The final bonus in the TransPromo value chain goes to the end-customer, who receives a document tailored to their requirements with valuable offers based on an understanding of their buying habits. They will also be less likely to receive additional annoying and irrelevant offers from the sender, perhaps slightly diminishing the clutter in their mailbox (or inbox). Well-executed TransPromo initiatives have been proven to improve customer loyalty and reduce customer attrition.
A solution that saves money and generates better response rates while making operations more efficient and keeping customers more satisfied? It sounds like TransPromo is a winning proposition.
Visit OceWowFactor to download the InfoTrends white paper entitled Electronic Use of Transaction Data, a Catalyst for TransPromo Across ALL Chanels.


