For several years now, printing industry pundits have been touting the tremendous potential of digital printing, and more specifically, variable data printing (VDP). They justify their claims by citing the dramatic increased response rates presented in case studies in various vertical markets. However, the process has not grown as fast as predicted, and one of the reasons is that most printers do not have expertise in database management a skill many mailing houses use daily.
VDP allows for every sheet coming off of a digital production press to contain different text and graphics. These changes are driven by a VDP software program that reaches into both the customer database and the content database and weds the two. It can be as simple as a name insertion in some text to where every word and graphic changes. The degree of sophistication depends on the quality and content of the original database, the capability of VDP and page makeup software, the design of the printed piece and the capability of the digital press.
VDP is a process that mailing houses can legitimately consider initiating as an extension of their businesses. Offset printers considering VDP are advised that if they don't have the total expertise set to enter into the field, they should consider partnering with organizations which complement and complete their production flow.
Mailers can use the same advice. As mentioned, mailing houses a
An interesting perspective of companies helping to create, produce and disseminate the printed word is to view the words as marketing services providers. Database management companies, service bureaus, graphic designers, printers, binders, as well as mailers, could all be viewed this way. It is likely that the future "printer" will indeed do printing, but printing will be only one of the many services it provides to the customer.
Characteristics of Successful
Trend Watch Graphic Arts recently did a study of successful marketing services providers and offers the following common characteristics.
Tends to be a start-up digital printing operation or spin-off from a commercial printer There is no reason why a mailing house can't be the genesis of a new VDP operation.
Focuses on strategy and marketing in its business philosophy While you don't have to be a professional marketer, you do indeed have to understand what "marketing" is all about, and you do have to become part of your client's marketing team.
Has own IT department As a mail house, you a
Focuses on creating applications, not selling products You will not be selling VDP. You will, in fact, be working in concert with your customers to determine how you can help them sell their products or services and increase the quality of their relationship management programs.
Has a very intimate, consultative relationship with its customers and understands those customers beyond an "over-the-counter" relationship Understanding the customer is knowing his/her problems and objectives and responding to those needs with solutions provided by your capabilities. You will undoubtedly find that you don't have all the resources to do this, and that is the time to reach out and collaborate with partners.
Is willing to spend months, if not a year or more, developing applications and educating customers before the final sale It sounds unreasonable, but it's true. There are many projects whose gestation time is enormously long and complex. Previously, printers would only become aware of a project when the specs were issued; however, a great deal of planning had been done prior to that moment.
Focuses on creating long-term programs, not one-off applications Along with the fact that you can price your services at a high value, this is the justification for working on a project for so long at the beginning. Remember, when a printer was handed a job by simply knocking on the door, it was likely that it was a one-off project. They printed it, were done and knocked on the door again. VDP projects are long-term relationships. They become annuities for your company and the reward for all your consultation and effort.
Has in-house skills or a close strategic relationship with a third-party firm that does You can partner and outsource more than one portion of the job. You could, in fact, be the "general contractor" and simply do the database management and fulfillment while your partners do the rest.
Three additional characteristics for consideration beyond the Trend Watch listing are:
They all have an individual who is an "imaginer" This imaginer is a key person. It takes creativity and imagination to effectively collaborate with your clients to solve their problems with your hardware and software solutions.
They utilize cross-media publishing. Publishing via multiple media outlets such as printed materials or electronic medias (e-mail and/or the Internet) Sound far fetched? Remember, all your data is digital and good marketing programs use several forms of media to effectively communicate their messages. There is no reason why you can't offer other media services.
They will be solution-oriented "content service providers" There is a distinct difference between content service providers and database managers. Simply put, content service providers maintain "content" that is the enterprise's text and graphics used for graphic communications. It has been say "he who controls the content, controls the work."
Variable Data Printing Has High-Value Pricing
VDP is not a commodity, at least not yet. VDP projects can be priced in a way directly proportionate to their value to the customer. Since VDP can result in much higher response rates, you can talk to the customer in terms of "cost per response" rather than "cost per piece printed and mailed." The customer also understands that a great deal of planning, coordination and manipulation of databases must take place for an effective VDP project; more effort equals more cost, and, hopefully, greater responses.
Jim Olsen, president, Imagination, Ink., is an evangelist of variable digital printing to the marketing community.
Jim can be reached at 518-587-9635 and by e-mail at jim@imaginationink.com.
