I will be writing about InfoTrends’ second annual TransPromo Summit in more detail in the pages of WhatTheyThink, but I just wanted to take a moment to scribble down a few thoughts at the conclusion of the first day.
Last year, there were about 300 attendees at the first TransPromo Summit. August in New York? Not necessarily at the top of everyone’s tourist destination. And this year is a difficult year, what with drupa, the overall economic situation, rising air fares and all of the other things business people are worried about these days. This year shows about a 30% increase in attendance, with about 400 people at the Summit. And the increased clarity and sophistication of the content reflects a market opportunity that is rapidly maturing.
The international blend of transactional document issuers, software and service providers and equipment manufacturers at this year’s TransPromo Summit has generated some lively discussions. The audience has been very engaged, with lots of questions, and the presenters are delivering not theoretical pontifications, but real results based on real campaigns that are delivering amazing results. This is backed up by recent InfoTrends research that does a great job of documenting where we are today and where we need to go next.
Industry veteran and InfoTrends Group Director Barb Pellow kicked off the session by introducing to the audience the concept of Simplexity – the title of a new book that talks about how complex things can be simple and simple things complex. This is the perfect concept to help kick TransPromo to the next level. The technology infrastructure for TransPromo is now the simple part. The complex part is more human-related—organizational issues, and even a lack of creativity and vision on the part of implementers.
We have been trying to get variable data and personalization kicked into gear for nearly two decades. What I find interesting is that the perceived obstacles to variable data implementation are the same ones marketers profess to see with TransPromo. It boils down to not being able to see a clear ROI. Hello! It has been proven over and over again that relevant, personalized content (and the effective use of color) drives improvements in response rates and other metrics important to marketers. The issues with TransPromo are no different. But the benefit with TransPromo is that marketers are communicating with an audience that has opted in. The transaction document issuer is a trusted supplier (usually). The documents ARE opened and read. The data is available, and presumably accurate since these are largely bills and statements. As an industry, we need to address Simplexity … Pellow compared it to Google, calling Google’s home page the flag for simplexity, with the functionality of the most complex Swiss Army Knife, but a simple and elegant interface.
If this year’s Summit is any indication, the TransPromo revolution is truly on its way. Big issuers and the service providers that support them “get it.” And they are not only implementing, but are beginning to be willing to share actual results. The next big opportunity, according to Pellow, is to bring this application to the mid-market. According to InfoTrends research, 54.4% of respondents generate between 1000 and 99,000 statements monthly, and there are millions of businesses doing this. With entry level software from providers such as Elixir, Printable and Prinova, TransPromo is within reach of smaller companies and the service providers that support them.
But watch out, USPS! Direct mail is split about 50/50 between customer retention and customer acquisition. If marketers were to take full advantage of TransPromo to leverage customer touch points and eliminate the need for separate mailings to communicate with customers, using transaction communications as the primary printed dialog with the customer, what will that do to mail volume? Of course, not all direct mail will be supplanted by promotional messages on transactional documents. But if even a quarter of them were, the postal service, and the print service providers whose livelihood depends on direct mail, are surely going to take a hit. Time will tell. But it is certainly a warning that anyone involved in direct mail production should sit up and take notice.
Simplexity: The consumer sees a simple, elegant interface, and the complex inner workings make it all happen. This is the mantra for the future of TransPromo. Stay tuned to WhatTheyThink for more.
Discussion
By Bob Raus on Aug 14, 2008
From Cary's overview above, it appears that Transpromo is gaining momentum from the 25% increased attendance in a down economy. It is intriguing to hear that company execs are still looking for clear ROI for variable data marketing and Transpromo. In some ways you have to wonder where these people have been for the past decade as numerous studies have clearly shown advantages of variable data printing.
On the other hand with so many companies still questioning the value of variable data printing – you might question whether those studies reflect reality. Many will argue that there is still good response rates from high quality, full color static documents.
I'd like to see a study using real-world example and recognizable companies/products that shows the adoption rate/investments in Transpromo made by industry marketing teams with corresponding response rates - compared/contrasted with response rates for static marketing materials - on eye catching substrates and designs digital presses can't support, with (higher quality) offset color and other targeting techniques such as micro-versioning for ultra-local markets. Which approach/technology would win there?
By Eliot Harper on Aug 14, 2008
Cari, thanks for the running commentary. Wish I was there! Regarding your comment on adoption, I believe the past obstacles to adoption for TransPromo hasn't really been due to "not being able to see a clear ROI", but instead has largely been a technology-related limitation. Let me explain...
Bills and statements fall into the category of 'essential mail'. By its nature, essential mail is typically produced in very large quantities and within a very short time frame (often millions of mail pieces produced within a 48 hour window). Historically, the main limitation in adding full-colour to essential mail this has been limited by available printers. Until recently, Kodak Versamark has been only been viable high-speed colour printer capable of meeting these tight turnaround requirements. The alternative was to invest in a room of cut-sheet printers, like JAIS in Japan with their 24 iGens, which amounts to a significant investment. However, Kodak, Screen, Océ, Ricoh and Xerox have all recently made announcements on new continuous-feed high-speed colour printers, which now makes full-colour digitally printed essential mail a reality.
Eliot
VDP blog: www.veedeepee.com
By Todd Bernhard on Aug 14, 2008
Hi Cary,
Simplexity. I like it.
... is it the opposite of Complicity?!
By Fadel F Iskander on Aug 15, 2008
Transpromo does indeed work. However, it is not new. We have been using it for our customers for over 3-years. However, our customers do not want to pay for color transpromo. Those who use it, do so in high-resolution grayscale (1200dpi).
They love it, and they attest to the very favorable results they receive. Therefore, they see no need whatsoever to implement a color solution.
They do enjoy the fact that their eBills and eStatements are in full color and do include the exact transpromo messaging that goes on the paper Bills & Statements.
We produce about 3-4 million statement&bills a month making about 5-6 million pages/month.
We can't justify placing ANY of the continuous feed color inkjet printers. Even if we can justify one, we would really need two for backup. In essence, limiting our options to cut-sheet printers.
That said, most vendors charge the same click for 8.5X11 page as they do for the 11X17 page.
So, if we try to minimize the click charge, finishing (slitting/merging or north/south split) becomes a nightmare.
So, we keep using Transpromo in grayscale for paper, and full color for PDF eBills and eStatements.
Thanks for listening.
Fadel
By Nathan White on Aug 15, 2008
I attended the Summit and followed the technology track. While there were many examples of the ROI and marketing benefits, the Q&A and side discussions revealed the technology roadblocks.
As Eliot indicated, the hardware has finally reached the required level to produce this type of work. The speed and quality of these new printers is fantastic.
There is still a problem for many companies with their software systems. They have legacy systems that cannot support color or deal with messaging that needs to be shared with other marketing channels. I believe the printstream conversion tools available today (Solimar, Compart, Crawfordtech, etc...) will help these companies get started while they work on the system upgrades.
The technology is here now, and the race is on to deliver it to your mailbox.
Nathan
By Pat McGrew, EDP on Aug 18, 2008
Cary!
Great to see you there.
I'm not sure where the 400 number came from. I was told that there were about 325, and from my perspective there were too many vendors and not enough users.
Let em explain... an event like this has to be positioned to educate potential adopters. We had some great presenters from around the world, and you may have noticed that some of the best presetnations on "how to do it successfully" came from outside the US. But when I counted heads in the sessions, I noticed that there was a lot of preaching to the converted.
To make an event like this truly raise the bar we have to get more agencies, more product line owners, and more marketing service providers sitting in the seats and listening to how to take the first step.
As was pointed out, most sessions talked about success but also pointed out the challenges. Yes, some older applications (especially home-grown applications) may have some challenges supporting color. Yes, some custom written applications may be harder to move over to integrated customer communication than those created using more modern tools.
But, despite any challenges, the rewards are there for customers who take the time to know their customers better and use the billing document, that essential mail, as mechanism for dialog.
I can't wait for the next time we can all get together and continue the discussion!
By Michael J on Aug 19, 2008
Pat,
I think you make a great point.
My take is that there might be a bigger issue. Transpromo may have more traction among vendors , both hardware and software, than it does for printers on the ground.
If printers are not at the conference they are voting with their feet, by staying home. They've decided that it's not, now, worth the time investment.
What concerns me is that the usual industry response is we need to "educate" printers. I spent years working with designers to "educate" them.
My conclusion is that people can not be taught. The necessary but not sufficient condition is that they have to feel the need to learn. Once they want to learn, it's a no brainer. Until they feel the need to learn, it's a non starter.
It's clear that transpromo makes a lot of sense for some. People who send out lots of statements, printers who are already involved in lots of transactional printing. No doubt that this is a significant market.
But does it really make sense for anyone else? Maybe figuring out how it might work for mid market will provide a solution. It doesn't make sense to me yet, since I don't know anyone who outsources sending out statements.
Maybe if printers were set up to teach their customers to use it on their own desktops, or get them to deliver either XMPie or PDFs to outsource the printing that could work.
But the idea that a printer is going to get a customer to give them the file that has everyone's statement on it sounds whistling like in the dark.
By Henk Gianotten on Aug 19, 2008
I have a question for Pat. Is the AFP Color input capability still a must for high volume transpromo? Some of the samples shown at Drupa (Ricoh/IBM) were AFP Color. The Spanish Telefonica case (5 Infoprint machines for full color transpromo) is also based on AFP-C. How about US applications?
By Pat McGrew, EDP on Aug 20, 2008
Henk!
I believe that it is. AFP continues to mature toward a high quality color model, and the power users of AFP are integrating color in, if they haven't already. Remember, many customers have color AFP that prints monochrome for cost reasons but displays color to the web. The emergence of the ability to print color at a reasonable cost means that many of those original color jobs are expanding from web-only delivery to multi-channel delivery and also fostering the migration and development of more color transaction print.
By the way, the Telefonica job is 5 InfoPrints doing about 50% of the work, and a couple of VX5000s from Kodak doing the other half. They are both being fed what is essentially the same color AFP print stream. The bid was let in such a way that no single print provider could win it. Vesa won half and Servinform (VX5000 print provider) won the other half.
Samples shown in the Kodak booth were also AFP color - Kodak is a member of the AFP Consortium and a key player in defining color AFP. Kodak showed dozens of samples in AFP color using CIJ and DOD inkjet. If you were there and picked up transaction print samples from the Kodak Digital Printing Bar it was an AFP application. And don't forget that the NexPress is also AFP Color capable via Emtex.
I'd be remiss if I didn't also mention that the Oce JetStream prints AFP color.
In the US you'll find dozens of applications in AFP color form the key print providers in the transaction mail industry. Folks like DST Output and First Data, as well as Citibank, Humana, Personix and others are printing color AFP. Folks in the US can look at their mailbox to find their Bon Ton bills, Home Depot bills and others that are color AFP, both spot color and full color.
I think that over time AFP continues to dominate in many markets, but keep your eye out for the emergence of PDF-VT, a PDF format that is friendlier to high volume transaction and integrated marketing.
Also, for Micheal J: The value proposition on working with customers to add value is proven. Printers of all sizes have done it. I'm not really talking about TransPromo as you may have looked at it, but the TransInfo, TransEd, TransPromo continuum. Companies as diverse as small vet practices and huge multi-national conglomerates have adopted the techniques and made them work. The importnat part is for the print provider to learn the techniques and figure out how to sell them. I disagree that the technique is limited to the largest!
By Michael J on Aug 20, 2008
Pat,
Once you add TransInfo and TransEd it makes alot more sense. Up till now I just have heard about the billing statement advertising stuff. Thanks for the new information.
By Kevin Trye on Sep 14, 2008
As a technologist, I agree with a lot of what has been said, especially Michaels comments on creating the desire to learn before we can move forward. But it's not just a question of educating printers. It's their clients who are always the bigger obstacle. ask any salesperson!
Introducing 'new technology' to the market is always a challenge, even if that technology has been around a long time and well proven technically.
Most humans [consumers] have an inherent fear of change, even when the ROI and benefits are obvious. They want it at a low cost, zero risk and want to feel the better for it. Jeff Grill of document management company Mimeo summed up the people issues in a short interview a couple years back. See my copy of it at http://ezimarketing.blip.tv
By Michael Josefowicz on Sep 15, 2008
Thanks for the link to the video. Definitely worth the click. Good point about inherent fear of change. From my POV, fear of change is completley rational. Who wants change? New things to learn.Another thing to fit into an already overcrowded day. Besides how do I know it isn't going to create more trouble than it's worth?
From the selling point of view, I never much believed in ROI as an incentive. In those few cases when it is, it's a pretty easy sale. Mostly, fear drives buying decisions in printing.
But, here's my quibble. When you say "It’s their clients who are always the bigger obstacle" that gets dangerously close to the "blame the customer" POV. Of course, the customer can be whatever they they want, because they are buying, and the printer is selling. I've seen many printing salespeople who are blind to what they can do because "it's the customer's fault."
Discussion
Only verified members can comment.