Vying for customer attention is a crucial business challenge. You continually have to single out your company from the InfoClutter, employing extraordinary methods to do so. Fortunately, technology now permits better ways to communicate with both clients and prospects. Computers allow us to remember our customers, gather information and segment customers into groups. Computers also enable a process we call mass customization. So, once you have determined customer likes and dislikes, a more effective dialogue can occur, based on knowledge about individuals.

Companies are just beginning to utilize databases of relevant information about customers, not just a list of names and addresses. They have learned that it’s more cost effective to get repeat business from an existing customer than it is to develop a new one. The Internet expedites distribute-electronically-and-print-locally enablement. Digital workflows, combined with active customer databases and digital print engines, facilitate printing personalized and highly customized communications for a run-length-of-one, and helps to enable Customer Relationship Management (CRM) initiatives.

CRM-The Digital Print Enabler
Fueling CRM is the need for businesses to develop customer equity and brand awareness. Studies indicate the cost of keeping an existing customer is less than finding a new one—some companies claim finding a new customer costs 10X more than keeping an existing one. It’s important to remember that CRM is based on philosophy, not on technology and not on software. Without the right corporate attitude, purchasing all the knowledge management software in the world won’t help achieve this goal. Having the right corporate mindset and establishing two-way customer dialog promotes a focus on Lifetime Value.

Lifetime Value takes the customer relationship far beyond a single transaction. It creates a notion of worth and customer value in the context of a lifetime of shared commerce. Implementing such an initiative requires the establishment of clear objectives—for the client as well as the company. Additionally, multiple methods of communication and efficient methodologies for accumulation and maintenance of client information are necessary. It is essential to remember that client information = KNOWLEDGE.

CRM drives printing by enabling 1:1 communication and a feed back process with customer relevant information. It would seem, therefore, that CRM is the perfect Variable Information Printing (VIP) enabler. However, lately there are a lot of surveys addressing the slowness VIP is experiencing in its quest to become a mainstream printing application. We all know this is the one killer app for digital print engines—the one feature that sets digital apart from offset presses. But, in order for VIP to grow, two things need to be in place—an updated database of names and addresses, and relevant knowledge about the target prospects on the database. In order to execute 1:1 campaigns, you, the printer, need to have the methodology, workflow and software in place to manage these assets. You must be able to use and manipulate the most current customer information.

PCDM-The Only Way To Go
Let’s differentiate between a business document that’s personalized and one that’s customized. Personalized means that the document has the recipient’s name, customized means the document also has information which is of specific relevance or interest to the recipient. Utility companies and financial institutions usually have the best information about their customers. Many are implementing statement based marketing—using monthly statements to include marketing messages of interest to the addressee. For example, the phone company may notice that a customer often makes calls to Mexico, so, in the next statement, it may include an offer for a special calling plan to Mexico. Mail inserts and left over white space on statements offer additional customer communication venues.

More and more, third party companies are taking advantage of ride along opportunities with the utility company’s monthly mailings. The challenge here is to develop ride along communications that have relevancy for the recipient. I call this Personalized Customized Direct Mail (PCDM). Gone are the days of To The Occupant blitz mailings. The effect of the 911 tragedy and related Anthrax scares means that direct mail has become personalized and targeted—this is the only way to get people to open mail. Although it may seem obvious, irrelevant direct mail is likely to be circular filed upon seeing the light of day—a waste of time and money.

In order to implement a PCDM campaign, you need to know your customer and what he likes or dislikes, next you need a plan. Without a plan, there are no measurable goals. Goals should be established on an individual project basis to determine how a particular strategy or communications vehicle is moving you toward your defined targets. Conducting regular customer surveys is an excellent method of making sure your strategy continues to be on the right track. Remember, plans must be flexible enough to take a turn in the road, and add or subtract elements in order to be customer responsive, while continuing to build toward your defined objectives. Communications must also be regular, timely and of value to the recipient. Your communication must give the recipient both the desire to open the package and the call to action to take advantage of the offering.

But PCDM Costs More!
It costs more compared to what? Advise your customers to compare all the process costs associated with print production, such as design, prepress, proofing, storage and waste. Surveys indicate that 40% of preprinted marketing information becomes obsolete before it is used. As your client’s business partner, you need to make your customer aware of this.

Color in B2B communications attracts attention and has the ability to draw the eye to a particular place. Both attractiveness and this ability to focus constitute good reasons for using color in business communications. Utility companies learned this some time ago when they began using spot colors to direct the reader’s attention to the block that says PAY THIS AMOUNT. PCDM communications are responded to, and, as proven by actual market tests, generate a 50% higher transaction amount than non-personalized communications.

According to CAPV, if the cost of a color page drops from $0.50 to $0.10 per page, the market will double. The print market will be totally transformed once lower price points are achieved by all vendors. Both Scitex Digital and Xerox are now achieving costs of $0.02-0.06 per color page, respectively. Color works! So, your customer shouldn’t be concerned that a digitally printed piece costs more than an offset printed piece. Ask him what his sales-to-close ratio is with the digital piece verses the offset piece. Who cares if the cost of a page is 6X more than offset when it generates a sale! Reduction in waste and inventory alone may offset the higher print cost.

Where Does Your Company Stand?
You may be a printer, but how well positioned is your own company to implement a 1:1 program? If you’re in the printing business and are not well positioned, how can you expect to give advice to your clients on this subject? You need to actively think about whether or not all people and departments within your company are on the same track regarding needs and attitudes to implement a 1:1 program. Here’s what you need: a well-articulated 1:1 strategy; communication of your strategy to everyone in the organization; a functional, updated customer database; and company-wide agreement on the action plan.

While we’re at it, let’s build a checklist of your implementation plan. You need to evaluate and prioritize each goal, and appoint responsible internal personnel to become champions of each area. Accountability, responsibility and clear internal communication are necessary for the disappearance of problems. Do you have an accurate, up to date customer database? Have you analyzed your sales failures to determine the reasons for lack of success? Do you know how to fix problems? Are you cross selling customers and products? Do you ask for referrals from your good customers? Finally, are you keeping pace with the needs of your customers?

The U.S. railroads nearly went out of business because they didn’t see themselves as being in the Transportation Industry. Don’t let this happen to your company. You’re not just a printer, you are a CRM enabler!