I did a presentation on variable data printing (VDP) last week for the Direct Marketing Association in Denver (RMDMA). I was afraid nobody would show up because it was the first presentation at 9 AM and it was raining in Denver again. When I sat down in the front row with my back to the audience 10 minutes before the presentation time, I was sure it would be a small audience because only about 8 people were in the room. After introductions, I turned around and found the room was packed and there were people still entering. It never ceases to amaze me the delta or gap between the high interest in VDP and the relatively low percentage of use. Based on my experience, it is one of the most popular subjects at printing shows and its appeal has not diminished since it came onto the commercial printer radar screen in 1995. It was at Drupa 95 that the first equipment offering color printing at production speeds were seen with the Agfa Chromapress, Indigo and Xiekon presses. It took a long time before the quality and reliability of the color digital devices gained mass market acceptance, but it seems like variable data printing may never achieve mass market acceptance. The obvious question is why? Why is there so much interest in the promise of VDP and so little market acceptance. The first reason most people come up with is that it's too expensive. This is a very common objection heard in sales of all products. However, more in-depth surveys show that more people use that excuse than actually mean it because it’s easier than voicing their real objections. On the other hand, if you look across the board at all the digital presses, the cost of maintenance and consumables has come down. But with all things considered, the total cost of operation is higher for a VDP job than a static job. And it should be. It takes time to work with databases, VDP software and run tests to confirm everything is working. But anyone who sells VDP can tell you – you don’t sell the cost / piece but you sell the cost per response. Another common objection is that it’s too hard. Yes, without a doubt, sending a printed piece through the mail stream that is a more targeted and relevant piece to someone is harder. Taking the time to learn more about your customer’s prospects or your customers’ customers or their purchasing habits or demographics and using that information in a meaningful way to help sell something is harder. But there is a line from a movie that my friend Bill Farquharson loves to quote from the movie “A League of Their Own” with Geena Davis and Tom Hanks. It’s at the end of the season and Geena Davis’ character, who is the star of the all woman’s softball team, decides to quit due to the fact that her husband has returned from the war. Walking to the bus Davis’ character tells Hanks, “I quit. It just got too hard.” I used to read Bill’s stuff everyday because we both blogged on the Graphic Arts Monthly home page and I remember what Bill wrote, “Hanks delivers three lines that serve as the perfect commentary to the challenge of sales these days. He says, “‘It’s supposed to be hard. If it wasn’t hard, everyone would do it. The ‘Hard’ is what makes it great.’” So the two reasons I can offer is that it costs more or that it’s too hard. Do you hear other objections when trying to sell VDP? Howard Fenton is a Senior Consultant at NAPL. Howie advises commercial printers, in-plants, and manufacturers on workflow management, operations, digital services, and customer research.
Discussion
By Kevin Trye on May 27, 2010
It is hard, but proper training helps, not just on the sales side, but the techncial so that when a VDP job arrives, it can be turned around quickly and without errors. If a printshop hasn't got that special 'geeky' individual who loves doing a VDP job and does it well, then it will always be slow, difficult and painful experience - Which means an upset client and a salesperson who won't try to sell VDP a second time. This is the biggest issue I see. Too many printshop owners try to push a design person into VDP who clearly doesn't understand it or want it. VDP is a production task, not a design on. Frank Romano once said it was the suppliers fault VDP is so hard due to all the differing standards and software. That's partly true. However it's not just the suppliers or standards. I think it's more an industry training issue.
By Roy Waterhouse on May 27, 2010
Howard, Those are the two biggest reasons for people not selling VDP. Another large reason is the lack of education within the typical printing company. The average printing company is a shop of about 50 people with 5 or 6 reps out in the field. At that size there is no formal training budget. If a sales rep does not have hours of training on the benefits, obstacles and systems of VDP it is almost always a safer route to just sell print. Roy
By Dharminder Biharie on May 27, 2010
Most of the printers and their reps are used to selling volume or business that is bases on traditional models. No one has learned int he past selling ROI or TCO. If printers want to move to new level of printing they should avoid commodity product. Commodity products are always highly driven on price. If price is the name of the game you should have a proper workflow and MIS. Is VDP hard to sell? Yes and no..It depends on your own creativity as sales. Ever tried to tell your customers that his discount goes to the red cross instead of giving to him? No one will refuse this...The adaptors of VDP are most of the time (at least in Holland, where I live) companies who are driven by IT, not by heritage of steel, press and ink. New business demand new way of thinking. If you can think out of a box, it could be a hard to achieve your successes of VDP.
By Lee Weiner on May 27, 2010
Howard, I agree that VDP is a harder sell but the money does become secondary when VDP is implemented correctly. Educating your sales team is the most important piece to having success selling VDP. Educating the customer is just as important and with this education based sales model you will convert more customers into the VDP world. The way print is sold is changing and the only way to capitalize on the opportunities VDP offers is to adjust your sales model. Lee
By darren b on Jun 10, 2010
Howie, Let's face it, VDP/Cross/Multi Media programs are really results oriented solutions... they need to be sold in this manner. (not as a commodity). I find more often than not, companies are challenged to sell most value solutions, because you really need to have a different selling strategy. I think there is a rather large equation on this subject. Firstly, many times the engagement is not with the correct executive level with the end client to sell a results oriented program. As an example, more often than not, many print sales people have a great relationship with the buyer... and VDP, multi/cross media solutions require an engagement with the C-Level and marketing executives. Often times sales reps fear "going above their contacts head" and fear the political repercussions within the customer, whereas they really would/could be bringing value to their clients business by educating them on the opportunity and bringing more value to their account coach. Secondly, there is the general human nature challenge, which is anything uncomfortable is pushed to a "later date". It is our responsibility as professionals to be educated, and educate our customers on opportunities to help our clients business. Educating customers on the opportunity to create higher success rates via VDP and multi/cross media applications should be a high priority. Unfortunately, more often than not, companies invest in solutions, whereas it becomes an under utilized and unprofitable liability... where it should become an profitable asset and differentiator. Thirdly, there is the compensation issue. Print sales reps often categorize vdp and digital print as "$500 jobs". Their perception is that its easier to sell the sheetfed or web press job, which may be $5,000 or $50,000. The reality, the well conceived vdp/cross/multi media campaign becomes a recurring revenue stream, often exceeding the "sheetfed" job. More importantly, there is now a "stickiness" to the client, where it will be more difficult for that customer to go to another vendor, since you now control the good data. Now all this being said, printers and communications providers need to re-evaluate their compensation strategy. VDP/cross/multi media programs are significantly more profitable to their company, and they therefore should compensate their reps to add more focus on on these high value opportunities. If your paying 10% for the sheetfed job, which nets 3% to the bottom line, then pay 20% for the "campaign" which yields 20% to the bottom line. Without our industry's army of sales persons focusing on the value our industry brings to the marketing bottom line, our industry will continue to languish, and we will continue to comment on how its all about price, its the USPS' fault, its the internet's fault, its the economy, etc... Let's all step up to the plate and keep our industry relevant.
By Tony Hodgson on Jun 10, 2010
I suspect that not enough printers make use of case studies when it comes to selling VDP. You don't even need to have your own if you are just starting out. PODi has a huge library of case studies of digital printers' applications of personalised printing and cross-media campaigns that fulfillled their clients' marketing objectives. Case studies are really important because they demonstrate the outcomes that have been achieved for other clients. That increases your credibility in the view of new prospects. Also, pilot projects can really help with new clients. Offer to undertake a small project at cost to start with to prove the effectiveness of VDP. They also serve as a test which you can learn from and improve upon. Selling VDP isn't about selling jobs and then just doing the task - it is also about selling effective strategy and building trusted relationships. These are much more valuable commodities to your clients than the "ink-on-paper" outputs alone.
By Chantal Tode on Jun 14, 2010
Nice insights, Tony. Showing customers that you understand marketing strategy is key as printers transition to marketing service providers and case studies are certainly a great way to accomplish this.
By Kel Adkins on Jun 15, 2010
What he said ... darren b ... make sure you understand the value so you can translate it in the sale!!! The extras are worth the investmetn for the higher ratio in return - learn it - live it - sell it - be rewarded for it! :)
By Bill Farquharson on Jun 15, 2010
GREAT STUFF, Howie! You nailed it when you talked about the difference between VDP interest and VDP implementation. It reminds me of Marketing seminars. Everyone talks about the need for it, but those sessions are generally empty. This is a terrific read. I'm glad Kelly Mallozzi forwarded it to me. Sorry we didn't get the chance to talk in Albuquerque. I hope your presentation went well. See you at Graph Expo.
By Claude Delgado on Aug 11, 2010
Howard, I’ve been involved in selling VDP since 2000 and I believe the reason selling VDP is so hard is that, well, you’re selling VDP. A printing company’s salesperson is trying to sell what his/her company wants them to sell. Success in selling VDP is recognizing and relaying to the client the direct benefits PERSONALIZATION delivers to him personally and his company overall, namely: Greater return on the distribution. The client is, I imagine, looking for SOME kind of return on the piece they’re printing; a telephone call or perhaps something as simple as warm recognition on a follow-up call. Don’t sell the cost/piece OR the cost/response rather, help the client focus on revenue growth and/or the larger picture cost savings; which leads me to… Cost savings. Digitally printing personalized pieces is much less expensive than lithographically printing thousands and thousands of pieces seeking the lowest cost/piece. BUT, it’s important to make sure the client recognizes the costs savings they’ll enjoy by not inventorying or distributing the excessive volume. Benefit to the salesperson. Compensation should be different for Personalized Print, it’s a longer sell but once it’s sold, and you have the client’s data, the client’s not going anywhere else for this type of stuff. The salesperson’s basically secured an annuity type of sale. Simply put, the benefits and sales approach for Personalized Printing are different than for lithographic printing, and its gestation is longer. As long as the fit is right, and the sales processes mileposts are appropriate (and monitored), the rewards in selling Personalized Printing are richer.
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