Direct Mail Sees a Resurgence While it’s true that some of the communications have moved to other mediums, print is by no means out for the count. When the Internet and mobile technologies hit the world, predictions about the death of print as a marketing medium abounded. But while it’s true that some of the communications have moved to other mediums, print is by no means out for the count. “Recent analysis in the marketplace (Infotrends) suggests that roughly 40% of recipients want mail and email, with the remainder split between mail only or email only,” notes Scott A. Scheidenhelm, Senior Manager, Product Marketing, Production Print Business Group, Ricoh (Booth 2035). “We have also been fi nding that hard copy is proven to deliver better retention by the reader and deliver results based on retention. As a result, direct mail continues to be a key part of any marketing strategy and email and other digital marketing strategies are seen as a compliment to direct mail, but not replacing it—as digital alone is proving ineffective.” “Many of HP’s (Booth 1825) direct mail print service providers have seen a signifi cant rebound in their demand for direct mail,” says David Murphy, WW Director of Marketing and Business Development, HP PageWide Web Press, HP. “What’s driving this rebound: the core value of printed, tangible, delivered marketing materials. Mail has proven to be the most reliable—spam-fi lter proof—way to ensure that a marketing message gets into a customer’s or prospect’s hands, is seen, and ultimately acted upon. Rather than tenths-of-a-percentage response rates typically seen with email-only campaigns, brands and marketers have seen solid high single- to double-digit response rates, higher conversion levels, better retention, greater cross-sell and in many cases increased basket/sale sizes with printed mail. These results drive higher ROI for the marketer—and that’s including the inherent higher costs of physical mail.” One big change in the market is that consumers no longer want the kind of mass-market communications that the term “direct mail” used to refer to. Today’s recipients expect some form of customization, if not outright personalization. “Direct mail has proven to be most effective when relevant and targeted, but marketers still need help in realizing these objectives,” says Shelley Sweeney, Vice President and General Manager, Service Bureau/Direct Marketing, Xerox (Booth 1625). “Relevancy is critical: 44% immediately discard direct mail if it isn’t relevant, 80% are more likely to open if it’s personalized and 71% say print/paper quality impacts their decision to open and read, according to InfoTrends.” “Meaningful personalization uses data to engage the recipient, and might include information about the area they live in, the car they drive, or may aspire to drive,” agrees Trina May, GPA’s (Booth 2940) Director of Marketing. “Content that catches the recipient’s eye and makes them think is what makes a difference.” Beyond personalization, May notes, direct mailers are looking to stand out using more upgraded substrates, things that make recipients want to open and read them. “Printing on substrates that add the slightest amount of ‘wow’ factor is a huge trend right now, even if it’s just thicker substrates or sparkly ones. Anything that helps direct mail stand out and get noticed is in demand. I expect special effects to gain even more momentum in the next 12 to 18 months, such as unique fi nishing techniques like raised ink, unique die cuts and non-traditional folds. Augmented reality is still coming around and I look forward to seeing it grow in popularity.” But producing those personalized pieces on the upgraded substrates isn’t just a matter of pushing a few buttons. Printers are having to ensure their operations are up to the challenge. “With these more intricate and varied pieces, production can pose a challenge,” says Johan Laurent, Business Operations Manager, Standard Finishing Systems (Booth 1548). “Printers who can fi nd ways to streamline the production process from creation to fi nishing will be able to take on more complex jobs, offer better pricing, and provide quicker turnaround. Recent advancements in high volume mailing equipment create advantages in the direct mail production space. There has been a trend toward greater automation and in-line production. These integrated solutions go from white paper roll to fi nished product with no manual touchpoints while providing a high level of customization on a range of substrates.” Even the printers used to produce the direct mail pieces are changing. Production inkjet, no Sheri Jammallo, Corporate Enterprise Segment Marketing Manager, Production Print Solutions, Canon Solutions America (Booth 1500), is increasingly becoming the technology of choice, able to handle everything from versioned campaigns, to variable data where every piece is unique. “Inkjet offers the advantages of digital printing—personalization, customization, electronic collation, whitepaper in to full-color-out just-in-time manufacturing, forms replacement, workfl ow automation, high productivity, and fl exible use of color—as well as the ability to produce higher-volume applications more quickly and effi ciently than digital toner devices,” Jammallo says. “For direct mail, inkjet provides a white-paperin/ full-color-out workfl ow with endless variability in messaging and images. Inkjet technology is ideal for customized direct mail because it offers a more affordable way than offset or toner-based presses to create impact by using both color and personalization, which improves response rates. Inkjet has opened the door to cost-effective on-demand printing allowing for shorter turnaround times and virtually limitless customization and personalization.” Print most certainly isn’t dead—it is, in fact alive and even thriving. How direct mail is produced and targeted might be changing, but the ability to adapt and offer solutions to brand owners is what sets a successful printer apart from the competition, and leads to growth across the board for years to come. Graphic Arts Alliance Annual Meeting Graphic Arts Alliance (GAA) will host its annual, members-only meeting tomorrow, starting with breakfast at 8:00 am in room N320F, located in the North Building, Level 3 at the Orange County Convention Center. Henry Freedman from Tech Watch will be one of the featured speakers. GAA is a member-run purchasing cooperative formed by sixteen graphic arts companies from across the United States. The mission is to help each member increase profi tability through leveraging purchasing power. The group was formed in September 2002, and is expanding membership with both print providers and graphic arts services. Membership is for companies over $8 million in annual sales.The group is the largest p purchasing cooperative in the country, with combined annual sales of of over $5 billion. Members decide which vendors to work with, how rebates r are distributed and who comes into the group, and members memb are not obligated to buy from any group contracts. Valuation Bootcamp for Print Company Owners When the time comes, how do you value a printing business? What key metrics are considered for the valuation process? Some segments, such as packaging, are commanding signifi cantly higher prices when the company is sold—how would your company measure up if sold today? How are “tuck-ins” valued differently than going concerns sold “where-is, as-is”? Today, from 3:30 to 5:00 pm, Mark Hahn from Graphic Arts Advisors will teach you the specifi c methodologies commonly used to value a printing business. PLUS, owners will receive worksheets to assist in preparing a valuation of their own business. If you are even thinking of buying or selling a business, this essential workshop will provide valuable insights. This session is part of the GRAPH EXPO Seminar Series. 28 | September 25, 2016 | GRAPH EXPO 16 Offi cial Show Daily | PrintingNews.com
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