The Business Case for TransPromo

By | May 27, 2008

Last week Barb Pellow wrote an article at WhatTheyThink.com about using transpromotional (transpromo) communication to to effectively target consumers. Pellow calls transpromo “a tried and true communications medium,” a medium that targets your customers, not the not one-time buyers.

The current state of the economy, rising fuel costs and other economic pressures make advertising and marketing even more important as consumers become more mindful of their spending. Corporation also tend to cut back advertising during a economic slump. According to Pellow, TransPromo is a very cost-effective in comparison to alternatives like billboards, television, the radio, and magazines

TransPromo is a very cost-effective mechanism in comparison to mass media alternatives like billboards, television, the radio, and magazines. Because consumers typically devote significant time to reviewing these transactional documents, businesses are well-positioned to capture more customer mindshare than many other conventional advertising channels.

The power of TransPromo is its reach: the invoice enters the customer’s home (90% of invoices compared to 7% of direct mailings); a personal approach: personalized, eye-catching, full-color graphics that drives customers to act; and its cost: printing and mailing costs have already been paid to send the invoice.

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2 thoughts on “The Business Case for TransPromo

  1. Michael Josefowcz

    Trans promo does make a lot of sense. It could be seen as sort of Google ads, but on paper. But, when using Google, the user is engaged in search. When opening a statement the user is doing something very different.

    There is little doubt that “The power of TransPromo is its reach” The engineers and vendors have done an amazing job.

    But, their very success brings into focus the real problem for marketers – what to offer, to whom and when. Google delivers contextually accurate info based on search, Advertisers pay lots to get their offer to the right person at the right time.

    How could this work in transpromo? Are there recommendation engines that are available? What is the real state of data mining among brand owners?

    My other concern is that transpromo as a business tool is really useful for any one in the statment or invoice business. It has the potential to create a new “media channel.” But for most commercial printers not in the statement business, I don’t see how it works. Unless of course they used it for their own statements.

    I’m also not convinced that in this information rich world, “eye catching full-color graphics drive customers to act.” Consider that Google ads, are contextually accurate but type only. My own sense is that in transpromo, it is the content and timing of the offer. Not the so much the presentation.

    Has anyone tried a transpromo approach that is more like classifieds than banner ads?
    Consider that classifieds were a very significant revenue stream for newspapers…until Craig’s List and Google.

  2. Bob Raus

    The points Barb makes in this article are spot-on. I am always amazed at the depth she takes these columns to as well. It’s clear that Transpromo is a fantastic method of getting messages in front of end-customers and the advent of ever more powerful workflow and high-quality transactional color print engines will help insure the value and response rates are delivered. If done well, the opportunity to sell white space and transform the data center print operation from a cost center to a profit center could fundamentally change transactional production printing. A potential ground swell of momentum could ultimately lead to PROFITABLE growth in this traditionally declining print segment.

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