Special Report by Barb Pellow November 2, 2006 -- Software and digital print equipment technologies are converging to address the growing requirements for interactive, multi-channel, performance-driven marketing solutions. Digital color print technology has advanced to the level where it is acceptable from a price/performance perspective for a broad array of direct marketing materials. As graphic communications service providers walked the show floor at Graph Expo, they saw near-offset-quality pages being produced on a variety of different technologies at different price/performance levels. Kodak, Xerox, Canon, Xeikon, HP, and Konica Minolta, to name a few, were demonstrating digital color print technology that is more than acceptable for the production of marketing materials. Vendors and software solution providers were focused on sharing application scenarios that would provide a pathway to profitability for prospective purchasers and existing users of digital color equipment. There were two new variable data dimensions that got substantially increased emphasis as new profitable business opportunities for digital color users. The first was personalized imaging and the second was the trans-promotional market. If Graph Expo is any indicator, the technology is ready and market development is well underway. It’s All About Image (Personalization) Image personalization software products help printers and designers to implement all complex personalization tasks with ease, efficiency, and smooth workflows. The concept surrounding image personalization is to use unique messaging techniques to appeal to existing and prospective customers on an emotional level by making them feel special. Creating customized images is a special form of variable data printing. To create a document, a template is built and text is varied according to data contained in a database. With personalized images, the background image is the template and the text is constructed using character sets that incorporate tiny images to produce the letters. Each letter in the set is built on a "wire frame" with images or glyphs arranged around and over the frame to create the final character. Glyphs can be stars, golf balls, leaves, footprints - any image that will make your message more personal. Dynamic text effects that provide the maximum personalization include: * Text Path Contouring - create images where the variable text follows curved lines or shapes. * Vector Writing - create names that appear to be written with rope, wire, vines, etc. * Random Blur and Scaling, Random Rotation and Opacity - create photorealistic effects by introducing random size, position, and opacity for the images (such as leaves, snowflakes, stars, etc.) used in the letters * Motion Blur - create the impression of movement with the graphic elements used in each letter; for example, text made with falling raindrops or letters on the side of a fast-moving car. * Color-Gradient Mask and 3-D Shadow - give the visual impression that a light source is shining on 3D objects forming letters within an image, for example, alphabet letters in soup or footprints in the sand on a sunny day. Image personalization applications enable users to transform a standard direct mailing into something so extraordinary that it is guaranteed to create a reaction. Technology has been developed by DirectSmile, DirectType and XMPie that opens unique opportunities for creative designs with variable contents. Their solutions allow for targeted, direct marketing campaigns carried out with image personalization that in some instances have achieved response rates of over 40%. As some software suppliers say, “What is more personal than seeing your name in lights (or stars or snowflakes), as a license plate on a beautiful car, or as an integrated part of the graphic imagery making up the campaign design?” It was clear at Graph Expo that software suppliers were excited about illustrating the capabilities associated with image personalization, while hardware vendors wanted graphic communication service providers to understand how these software tools could drive print volume. HP shared applications developed in concert with Direct Smile. In the booth, they reproduced a variety of samples including towels drying on a clothes line with variable text on each towel, to names generated by spilled wine. Kodak’s booth had a sports theme and they leveraged DirectType to illustrate the power of personalized imaging solutions. The objective of the demonstration was to show attendees the combined capability of the NexPress and DirectType. Kodak illustrated how personalized sports images can stand out among the commercial monotony of every day life and be sure to grab everyone’s attention. Xerox demonstrated the capabilities of XMPie’s uImage in concert with the iGEN3. uImage lets you leverage the Smart Object feature of Photoshop CS2 in creating personalized images, while maintaining all the effects that can be applied to non-rasterized Smart Object layers. For instance transformations and clipping masks, including Photoshop CS2’s new Image Warping capabilities which enable you to wrap images around 3D surfaces leading to highly realistic results. And there are a variety of selections for automatic image fitting to frame for true creative image control. Users simply add a tag for variable data text in the Photoshop text layer, and uImage automatically fills in the variable text from the recipient data source. All the effects that can be applied to non-rasterized text with Photoshop CS2 (for example: character styles, layer styles, and transformations such as warping) are maintained completely true to form. uImage also defines copy fitting settings so that text always fits into the desired space. For more impact, users can even have multiple text layers containing multiple variable text elements. According to Larry Zusman Xerox Worldwide Marketing Manager, VI and Workflow Solutions, the following hotel registration application demonstrates the real intent of personalized imaging technology. Zusman said, “Variable imaging is about strategy, data and design coming together.” This hotel confirmation demonstrates the ultimate usage of variable image software. Each confirmation is gender specific, with blue versus pink robes for male versus female guests. Robes and pillows are monogrammed with their initials. The strawberry tray has the guest’s name written in chocolate. Even the note card next to the bed is personalized with individual information about the guest. The image personalization technology in combination with digital color printing opens unique opportunities for creative designers that have a strategic vision of the impact of variable data. It allows for the targeted and emotional addressing of customers in dialog marketing resulting in highest response rates and increased marketing efficiency. TransPromo – Leveraging Customer Touch points Transactional documents are those necessary to run the business including invoices and statements and are clearly a major focus for corporate printing. Historically, transactional printing has been almost exclusively monochrome with a limited number of spot color applications using either continuous feed or cut sheet printers. There has been recent market emphasis on getting the transactional document to do more and actually become a marketing document. Bills and statements sent to customers communicate information, are expected by the recipient and capture attention. The real value in the transactional document is the ability to use it to turn that attention into action. TransPromo documents are designed to combine information delivery with data driven personalization and promotional offers to generate faster and higher response rates. While the market has not fully developed, equipment vendors and software suppliers at Graph Expo were focused on educating the market and demonstrating full color TransPromo materials using inkjet and toner-based print technology. Xerox partnered with GMC Software in the development of a TransPromo statement for a kitchen outlet. GMC’s PrintNet solution is designed to drive multiple document-related applications from a single platform, composing and producing statements, bills and invoices, new account kits and correspondence while enabling targeted marketing messages with customer service follow-up communications. Systems like GMC can generate dynamic charts, data driven graphics and transaction tables; offer message management capability and multi-channel output support; and have blended these capabilities with color management. Examples like the following illustrate how marketing messages can be effectively added to transaction documents to strengthen customer relationships and drive additional business opportunities Kodak Versamark coined the term “TransPromo” and has had demonstrated success with the Versamark VX 5000 at DST Output in Europe with systems running at 500 feet per minute. Kodak partnered with PrintSoft in demonstrating trans-promotional printing at Graph Expo. PrintSoft PReS generates documents that include variable text, pictures, graphics, barcodes and merged data. Using conditional logic, dynamic documents are created where the entire layout varies with the input, producing documents designed for each individual recipient rather than a “one-size-fits-all” document. PReS can format the document for printing on any high-speed printer and for electronic distribution. As demonstrated with this Sports Shop application, full color can be used to maximize response rates. New Dimensions – New Opportunity While it is too early to understand the full impact that both personalized imaging and TransPromo printing will have on driving digital color volume, ROI reigns supreme in the marketing world. It appears that personalized imaging and TransPromo solutions in combination with high speed digital color technology have matured to the level where marketing executives will take notice of the results they can deliver, beginning to understand the full range of technological capabilities at his or her disposal. The CMO will want to leverage trans-promotional and personalized imaging alternatives with knowledgeable suppliers that understand the new world of business communications. As you reflect on your business, you need to assess if you are ready to take on this challenge.