EL DORADO HILLS, Calif., July 24 -- New postal rates, inkjet printing technology and innovative software tools are driving a hot marketing trend called TransPromo, a technique that combines obligatory transactional customer communication with revenue-generating promotional offers, according to DST Output, one of the largest providers of statement and billing output solutions.
While consumers are lamenting another postage increase, the "silver lining" in the new rates for companies with high volume mailings is that the rate to send an additional ounce of First-Class Mail(R) actually decreased from 24 cents to 17 cents on an individual piece. And with letter automation discounts the rate declined even further to 12.5 cents. Factor in the one-cent rate increase to 21 cents for standard class mail, and companies now find it less expensive to send promotional offers and messages with their transactional statements than separately. And they can now use the additional ounces in the First-Class(TM) envelope as another marketing channel.
Ford Motor Credit Company was an early convert to DST Output's TransPromo capabilities, with the goal of increasing sales of its Ford, Lincoln, Mercury, Mazda and Volvo vehicles. Adding a customized page and brand information to its 3.8 million statements sent each month; Ford Motor Credit regularly infuses marketing messages and promotional offers that are targeted to its customers' buying patterns and preferences.
TransPromo differs from traditional "bill stuffers" in that it takes the form of highly personalized offers based on customer profiles and preferences that are printed right along with the transactional content relied upon by customers. This additional customized communication is a new and effective channel for marketers to cross-sell, up-sell, build customer loyalty and enhance customer relations.
"Just about the only mail customers don't immediately throw in the trash bin are their statements and bills, so this mail is a very valuable marketing vehicle," says Cheryl Kananowicz, DST Output's vice president of Sales & Corporate Communications. "We're already seeing a real acceleration in our clients' statement-based or TransPromo marketing efforts."
In addition to advantageous postal rates, the TransPromo trend is accelerating because of advances in printing technology. In May, DST Output announced a new high-speed color printing and inserting platform called Digital Press Technology, or DPT, that makes it the world's largest inkjet systems printer. This innovative and high-volume capability enables DST Output to serve the exacting requirements of some of its largest financial, telecommunications and retail clients.
According to InfoTrends, "2007 marks the year that inkjet page print technology moves from promise to early innovation towards mainstream acceptance," thus making large scale and time-sensitive personalized customer communications possible for the first time.
The new postal rates, combined with DST Output's DPT platform and its Campaign Manager software, open up significant new opportunities for marketers to nurture their customer relationships by targeting and customizing content and graphic images at the individual statement level for their printed and electronic customer communications.