Variable Data Lets In-plants Make a Difference

THE MARKETING budget in corporate America typically falls victim to intense scrutiny. In a results-driven age, the chief marketing officer feels intense pressure from executive officers, boards, shareholders and customers to deliver measurable results. As a consequence, marketers are always asking questions like these:

• How can I be as efficient as possible in my marketing efforts so I don’t waste time and money?

• How can I make sales personnel more productive in prospecting and closing business?

• How do I keep the sales funnel filled with qualified leads?

• How can I more effectively get clients to come to me instead of having to chase them?

Given the pressure in the market to improve marketing ROI, variable data printing is becoming a mainstream element of business communications. There have been marked changes in the ease of use and variety of tools available for one-to-one variable imaging solutions. Historically there has been a range of options, from simple mail merges to complex transaction document solutions. Market research firm InfoTrends, in its “2005 Variable Data Design and Production Report,” identified options including:

• Mail Merge: Incorporating name and address information to produce unique pieces for each recipient.

• Simple One-to-One: Incorporating some targeted images and text along with personalized information to produce a unique composition customized to a unique recipient.

• Complex One-to-One: Incorporating completely unique text images graphics, templates, content and designs based on detailed profile information about each recipient.

• Transaction: Incorporating personalized and customized content with intricate financial and account data that is automatically composed to produce “data-driven” documents. This data is frequently mainframe-based, and document creation may encompass complex logic.

Integrated Automated Marketing

Most recently there has been increased emphasis on the emerging world of integrated automated marketing campaign management. Tools from XMPie, MindFireInc., Pageflex and Responsive Solutions are delivering multi-channel solutions that let users synergistically combine print and e-mail marketing communications.

Integrated campaign management software focuses on the design and execution of marketing campaigns. These software products allow marketers to select specific customers for inclusion in a campaign, filter other customers, decide which customers get which offers, decide when a customer receives certain offers and through which channel the customer will receive the offer.

Additionally, campaign management software can help detect customer responses to the campaigns and create the output for telemarketing organizations, direct mail fulfillment or e-mail offerings. Many of these campaign management tools can track response metrics in batch mode and real time and provide a user-friendly marketing portal that allows management to see the key reports and metrics on a day-to-day basis.

As marketers face more scrutiny from the financial decision-makers in their organizations, measuring the effectiveness of marketing programs becomes more important. Variable data solutions that improve the ability to reach the right prospect at the right time will become crucial.

According to Variable Data Printing 2005 from Trendwatch Graphic Arts, 29 percent of commercial printers produce VDP jobs in-house, as do 58 percent of digital printers; 13 percent outsource VDP. IPG data shows that nearly 44 percent of in-plants produce VDP to enhance the effectiveness of their internal customers’ marketing efforts.

Louisiana State University

Louisiana State University Graphic Services is taking on the VDP challenge. The in-plant offers a range of printing and production services. In addition to its six-color, 28? Mitsubishi, two-color MAN Roland and multiple one- and two-color Heidelberg presses, Graphic Services also runs two NexPress 2100 digital production color presses, along with a Kodak Digimaster 9110.

Graphic Services provides users with Internet access for job submission and tracking, as well as finishing, kitting, fulfillment and distribution services. The shop employs 115 full- and part-time staff members.

One of the most pivotal marketing functions in a university is attracting new students. Mike Loyd, director of Procurement Auxiliary Services, and his team are working with admissions to develop personalized mailers to attract both in-state and out-of-state top scholars. These VDP marketing materials incorporate the individual’s name, and the scholarship opportunities that are presented are different based on the geographic location of the prospective student. The materials also reflect the difference in the eligibility for financial aid packages for in-state versus out-of-state students.

San Diego State University

After a lengthy career in a variety of graphic arts organizations, Leslie Rutledge took the position of manager of ReproGraphic Services at San Diego State University (SDSU) nearly two years ago. Early in her tenure, the university acquired an HP Indigo 1050. The first month the system was installed, it produced 5,000 impressions; the second month it ran 100,000.

Rutledge realized that the critical success factor was educating the user population about the marketing value of digital color and variable data. SDSU ReproGraphic Services is required to be self-supporting, and there is no “right of first refusal” for printing, so she competes daily with external printers.

Part of her strategy to improve awareness and competitive positioning for the shop was to market its capabilities. The department’s Web site talks about its Web order entry capability, convenience and the fact that services are cost competitive with external sources.

Rutledge used the Indigo acquisition as an opportunity to hold open houses and introduce faculty and staff to the resources available in ReproGraphic Services. For those participating in the open houses, she captured the individual’s contact information through a prize drawing and produced personalized thank you cards, which included horoscope information.

Rutledge followed that up with personalized calendars that highlighted pay dates. The calendar kept ReproGraphic Services in front of prospects and customers for 12 months while demonstrating its color printing and graphic design capabilities.

Today, ReproGraphic Services is growing its user base. Enrollment Services conducts career fairs in a number of locations, and the in-plant is generating personalized mailers for the various cities. The Athletic Department is creating personalized mailers to season ticket holders.

“It is essential to educate your user base,” stresses Rutledge. “Reactions to discussions about variable data can be like a deer in headlights, until the user sees a visual image of what can be done.”

Mellon Financial Corp.

Founded in 1869 as T. Mellon and Sons’ Bank, Mellon Financial Corp. is a global financial services company headquartered in Pittsburgh. With approximately $5.3 trillion in assets, Mellon provides a range of financial products and services.

Mellon has three primary print centers that are well equipped with digital printing technology.

• The Boston location has two Xerox DocuColor 8000s and a Xerox Nuvera.

• In Pittsburgh, there are four Xerox Nuvera 120s and an iGen3.

• Philadelphia’s Corporate Publishing operation has a Xerox 6060 and a Nuvera. (See video of this in-plant at www.ipgonline.com.)

These operations are also linked into the London location which has a Xerox 5252, a 6060 and a DocuTech 6180. Equipment is standardized with the latest DocuSP front ends so VIPP (Variable data Intelligent PostScript PrintWare) can consistently run jobs across the network.

“We have evolved our variable data capabilities over the past year,” notes Andrew Jones, manager of Corporate Printing. “One of our first applications was for checking account statements. There were 150,000 statements and 400,000 pages of data and images. The vended process took 15 days. The client needed four-day turnaround or threatened to move millions of dollars of business somewhere else.

“We re-engineered the process to a 20-hour cycle time. At the same time, we generated $50,000 in hard dollar savings through a reduction in actual printing costs, and we cut programming costs by $200,000.”

In a wealth management application for individuals, statements were altered so that data was displayed in easy-to-understand, full-color graphical form. While there was no cost savings, the new program generated improved customer retention and new client opportunity.

“To be successful with variable data, we need to understand the specific requirements of the business units,” Jones continues. “We are growing volume at 20 percent per year by insourcing outsourced work, and we do that through demonstrable cost savings. Savings are the result of workflow efficiencies and improved variable data capability.”

Work Closely with Marketing

As the economic power moves from the producers of products to consumers, the role of marketing will grow in importance. Helping the marketing executive to deliver measurable results will be crucial to the success of in-plant operations. Marketing is driving the business, and the in-plant must integrate itself into the marketing value chain to deliver the best possible value to the organization.

These are times of significant change in marketing, and the in-plant can play a key role in successfully driving that change. It requires elevation of contacts to the right level in the organization, having the right tool set in place and delivering the right value to your clients. IPG

Barbara A. Pellow is principal of Pellow and Partners, a consulting practice that helps companies develop multi-media strategies. Prior to this she was the chief marketing officer of Kodak’s Graphic Communications Group. Before that, she was the Gannett chair in integrated publishing sciences in Rochester Institute of Technology’s School of Printing Management and Sciences. Pellow has also served as corporate VP of marketing for IKON Office Solutions and for Indigo; VP and general manager for the Xerox Document Production Systems Group; and director of the On Demand Printing and Publishing Service at CAP Ventures. A frequent speaker at industry events and a recognized author, Pellow is on the Board of Directors of Ft. Lauderdale-based Spherion as well as EDSF. Contact her at (585) 554-4144 or at: barb@pellowandpartners.com