final digital presentation
DESCRIPTION
This presentation highlights the benefits of digital printing and the use of variable data for direct mail marketing.TRANSCRIPT
Kipenzi Chidinma
Marketing Director
Digital Color Printing Trends and Opportunities
2/25/2011 1
Digital Color is Exploding
8x Faster
Growth Than
Traditional
Print!
Digital Color
Traditional
Co
mp
ou
nd
An
nu
alG
row
th R
ate
Source: CAP Ventures
3/20/2008 3
Turnaround
Time
Source: NAPL
Of printers cite turnaround pressure
59%
Digital Color will lead growth
22%
Source: CAPV
Print on
Demand Run Lengths
Source: INTERQUEST
Of four-color jobs are already less than 5,000
Variable
Content
43%
Expecting their variable printing to
increase in the coming year
Source: Strategies for Management 2005
What’s Driving Digital Growth?
70%CAGR
2/25/20114
Let’s look at an example of using VDP
•First name personalization
•Number of steps calculated based on address info
•Turn by Turn Directions from house to store
•#1 Selling Shoe in its category while campaign ran, (Sears) You can hike there in only 21,120 steps.
But you might want to wait till you have the shoes.
2/25/2011 4
2/25/20115
What is Personalized One to One Marketing?
Personalized Marketing is a way to have pictures, graphics, messages, offers, and calls to action differ according to the needs of an
individual recipient.
It is much, much more than changing the address block.
2/25/2011
The Power of Color
Awareness and Comprehension - Up 80%
Communicate and Sell Ideas - Up 88%
Timely Payment of Invoices - Up 30%
Learning and Recall - Up 55% to 78%
Source: CAPV
6
3/20/2008
Color + Personalization =Increased Response!
Plus
44%
Plus
45%
Plus135%
Plus
500%
Source: Digital Print Council
7
2/25/2011 8
The Power of Personalized One to One Marketing
A 34% faster rate of response
Source: CAPV Study for IBM
A 48% increase in repeat orders
A 25% greater average value of each order
A 32% increase in overall revenue 0%
10%
20%
30%
40%
50%
Ov erall Rev enue Order Value Repeat Orders Response Rate
2/25/2011 9
Cost per Response – Not Cost per Piece
Example: Traditional Campaign
Budget: $100,000
Size of Mailing 285,714
Cost per Direct Mail Piece $.35
Response Rate* 1.5%
Responses 4,286
Cost per Response $23
Source: Direct Mail Marketing Association
2/25/2011 10
Cost per Response – Not Cost per Piece
Example: Variable Content
Campaign Budget: $100,000
Size of Mailing 166,667
Cost per Direct Mail Piece $.60
Response Rate* 5%
Responses 8,333
Cost per Response $12
Source: Romano & Broudy
2/25/2011 11
Impact on Response Generation
Example: Campaign Budget = $100,000Traditional Variable Content
Cost Per Piece $ 0.35 $ 0.60 Response Rate* 1.5% 5.0%Size of Mailing 285,714 166,667
Responses 4,286 8,333
Cost Per Response $ 23.33 $ 12.00
Net/Net: 1:1 Marketing costs less per response.
2/25/2011 12
Impact on RevenueExample: Campaign Budget = $100,000
Traditional Variable ContentCost Per Piece $ 0.35 $ 0.60 Response Rate* 1.5% 5.0%Size of Mailing 285,714 166,667 Responses 4,286 8,333 Conversion Rate 20% 20%Revenue Per Sale $ 200 $ 200
Total Revenue $ 171,440 $ 333,320
Which campaign would you run?
2/25/2011 13
Forms of Digital Data:
- Printed Marketing Pieces - Customized Postcards- Direct Mailing Pieces - Customized Magnets- Targeted Mailings - Customized Printed Materials