Should In-plants Offer VDP and Marketing Services?

IN MY February article, "Naysayers and Yea-Sayers," I talked about in-plants that are thriving. The in-plants in this group share something I refer to as establishing credibility with existing products first, and then using that trust to motivate interest in more valuable products, such as variable data printing (VDP). Those successful in-plants often use VDP as a stepping stone to other database-driven services such as e-mail marketing, PURLs, SMS and QR codes. The question becomes, should you offer VDP and other marketing services?

If you read the trade press or attend trade shows, you probably have heard the suggestion that printers should offer marketing services. This message is typically targeted to commercial printers and is often called the migration from Print Services Provider (PSP) to Marketing Services Provider (MSP).

At NAPL, when we survey printing companies (in-plants and commercial shops) and ask which services they expect to grow the fastest, VDP is on the list. In our 2010 State of the Industry research, VDP was the top answer, and its importance has been increasing. When we compare data to 2006 State of the Industry surveys, we find two interesting changes in the rankings: VDP remains the most valuable service, while Web-to-print services jump into second place.

The best source of information about world-class variable data print campaigns is the Digital Printing Initiative or PODi. Over the years, as a judge for the PODi VDP awards, I have seen many award-winning VDP programs done by in-plants or for in-plants.

As we will discuss later, one of the most important first steps in offering marketing services is understanding the applications and advantages. And nothing illustrates this better than case histories. Here are three PODi case histories that demonstrate the value of VDP.

Loyola University

For two years, Loyola University in Chicago has created a customized move-in manual to ease students' transition to university life. The issue for Loyola was how to transmit a move-in schedule for 15,000 students.

The Department of Resident Life used to send out loose-leaf sheets in 9x12˝ envelopes, but the information was not targeted, and the loose-leaf sheets were inconvenient and often lost by students. The goal was to create manuals that would be easier and more convenient for students to use, while showing clearly their individual move-in times and destinations.

The format was changed to pocket-size 4x51⁄2˝ booklets, which were easier to keep track of and carry around. Each manual had 14 pages and included the student's name, new housing location, roommate's name, meal plan info and a color-coded campus map, including drop-off spots and parking.

The manual was first sent in August 2009 and was a huge success. According to Loyola, it is one of the first customer service experiences for students and parents and it can help the transition from home to university life. It helped newly arriving students feel welcome and helped reduce any parental feelings of buyer's remorse or student feelings of homesickness.

Arkansas Department of Human Services

Last October, the Arkansas Department of Human Services wanted to drive people to its booth at the Arkansas Early Childhood Association Conference, where they were featuring a new program called "Better Beginnings," a quality rating improvement system for childcare providers.

Based on the conference registration list, the department had 900 cards printed and handed them out during registration at the event. Each card had a PURL and a QR code, both linking people to a survey, offering them a free note pad for participating and entering them into a drawing for another prize.

Based on survey results, the Department of Human Services learned that:

• 41 percent felt comfortable explaining the new Better Beginnings program.
• 48 percent did not understand the benefits.
• 54 percent had never visited the Web site.

The participation resulted in increased awareness, and the 282 people who visited the booth received more information about online resources available to assist them in meeting federal standards for childcare providers.

AME Financial

AME Financial has won many PODi awards over the years. In 2006, AME needed to increase productivity in order to customize pieces to accommodate changing laws in different states without adding more staff. AME created a process that doubled its marketing collateral capacity for salespeople. The key was a template-based, Web-to-print ordering service that allowed loan officers and realtors to add their addresses and photos to templates of business cards, postcards, newsletters, brochures or other materials, and order printing online.

In the PODi case study, Mike Gulitz, AME Financial's vice president of sales and marketing, said, "After our clients choose the marketing piece they would like to purchase, they follow steps that detail the quantity, shipping information, billing information, and, if needed, their contact information. They are offered different payment options, and most recently were given the option to pay with a credit card. We are constantly updating our marketing material and have the ability to add more pieces in the future."

In-plant Challenges and Opportunities

During the 2009 IPMA conference in Rochester, a survey by Xerox asked attendees to prioritize their greatest challenges. Sitting in a cold tent on the first day of the show, I remember some of those answers included:

• Being recognized as a critical asset: 52 percent.
• Establishing new services: 48 percent.
• Work that was sent outside: 35 percent.
• Marketing themselves internally: 30 percent.

When asked which areas had the greatest growth, among other answers they said:

• Full-color variable data printing: 66 percent.
• Online ordering with Web-to-print: 64 percent.

Summary

Now let's return to our original questions: "Do VDP and other marketing services offer more value?" and "Should you offer them?" Based on the case histories we've reviewed, and the market research cited, it seems apparent that the answer to the first is a clear yes. But is offering VDP and other marketing services the only way to prove an in-plant's value? The answer to that is no. Mailing, fulfillment, design and large-format printing are other services that can increase your value.

On the other hand, offering VDP may be a natural extension of your existing core competencies, and most in-plants already own the equipment. The In-plant Graphics survey of college and university in-plants (April 2010 issue) showed that of the 66 percent that provide VDP, 91 percent print address information and 88 percent print recipients' names on envelopes. And an IPG market study in 2010 showed that digital printing and copying grew from 91 percent in 2008 to 96 percent in 2010. Therefore, it seems safe to say that in-plants have the equipment and experience to provide VDP.

When it comes to the question of whether in-plants should offer VDP and marketing services, there's no one-size-fits-all answer. It may be "no" for the Department of Transportation in-plant in California, but it might be yes for a university in the Midwest.

A better question might be: "Are there unique advantages for in-plants that master VDP?" The answer to that query is "yes." VDP is one database-driven service that can open the door to other database-driven marketing services such as e-mail marketing, PURLs and QR codes. And database-driven marketing services are more valuable and less price competitive than making marks on paper.

How can you get started? In this author's opinion, the best way to think about how you can use VDP to create more value is to study best practices and learn what others have done. We have provided three case histories, but there are hundreds more.

Where do you find them? There are a host of good sources. Most of the manufacturers have market development programs and PODi is dedicated to identifying world-class case histories. Just beware that most case histories, regardless of the source, focus on commercial printers more than in-plants. The other option is to find someone with in-plant VDP expertise who can simply look at your applications and clients and identify your best opportunities.