General Session 2: Key Highlights from Trans Meets Promo: a European Perspective - Matt Swain and Kaspar Roos

Key Highlights from… Trans Meets Promo: A European Perspective Kaspar Roos, Senior Consultant, InfoTrends Matt Swain, Senior Research Analyst, InfoTrends

The Road to European TransPromo Research Trans Meets Promo… Is It More Than Market Hype? (2008) The Future of Mail and Transaction Documents (2006) The Future of Mail and Transaction Documents (2003) The Internet and Future of Transaction Documents (1997) © 2009 InfoTrends, Inc. www.infotrends.com 4

Why a Follow-up Study in Europe? • You wanted local data! • One size does not necessarily fit all • Unique considerations to justify a study of its own  Stricter data protection and privacy regulations  Difference in consumer behavior © 2009 InfoTrends, Inc. www.infotrends.com 5

Consumer Respondents Consumers (N = 2,460 Respondents) • 2,460 consumer respondents Sweden Germany  6 countries 16.3% 16.4%  400+ respondents from each country • Guidelines: United  18+ years of age Belgium Kingdom 17.2% 17.0%  Internet-connected  Resides in Belgium, France, Germany, Italy, Sweden, or the United Kingdom Italy France 16.3% 16.8% Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 7

Direct Marketer and Document Owner Respondents • 792 direct marketer and transaction Direct Marketers and Transaction Document Owners document owner respondents (N = 792 Respondents) Sweden  6 countries 7.7% Belgium Germany  60+ respondents from each country 10.9% 26.6% • Guidelines:  Operations in Belgium, France, Germany, Italy, Sweden, or the United Kingdom Italy  Responsible for the purchase or 16.9% development of direct marketing programs United (direct marketers) Kingdom 19.2%  Responsible for the purchase, France development, or deployment of transaction 18.7% documents (transaction document owners) Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 8

Print Service Provider Interviews • Qualitative research – completing the picture • 20+ interviews with print service providers with operations in Western Europe are currently underway • Significant volume (>20%) is transaction printing/processing • Interviews include various sizes of providers currently engaged in TransPromo and those who are not • We are interested in speaking with you! © 2009 InfoTrends, Inc. www.infotrends.com 9

Mail Discarded Without Being Opened or Read Unaddressed mail from unfamiliar businesses 73.70% Credit card offers 71.40% Addressed mail from unfamiliar businesses 45.80% Unaddressed mail from familiar businesses 44.70% Promotional inserts included with bills & statements 31.80% Catalogues 27.80% Addressed mail from familiar businesses 20.60% Coupon packs 20.30% Statements 1.60% Bills 1.30% 0.00% 100.00% N = 2,460 Consumers Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 11

Mail Discarded Without Being Opened or Read Unaddressed mail from unfamiliar businesses 73.70% Credit card offers 71.40% Addressed mail from unfamiliar businesses 45.80% Unaddressed mail from familiar businesses 44.70% Promotional inserts included with bills & statements 31.80% Catalogues 27.80% Addressed mail from familiar businesses 20.60% Coupon packs 20.30% Statements 1.60% Bills 1.30% 0.00% 100.00% N = 2,460 Consumers Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 12

Preferred Way to Receive Bills and Statements Via Mail and Internet 18.0% Via Internet 43.0% Via Mail 39.0% N = 2,460 Consumers Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 13

Number of Transaction Documents Received Per Month Internet Mail 10.0 8.0 6.0 4.0 2.0 0.0 Total Belgium France Germany Italy Sweden UK N= 2460 424 413 403 401 400 419 Consumers Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 14

Plans to Change Use of Online Bills and Statements No change Increase Decrease 100% 80% 60% 40% 20% 0% Total Belgium France Germany Italy Sweden UK N= 2049 305 360 354 341 324 356 Consumers Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 17

Time Spent Reviewing Monthly Statement Mail Internet 5 4.5 4 3.8 3.8 3.5 3.4 3.3 3.1 3.1 3.0 2.9 2.9 2.8 3 2.6 2.3 2 1 0 Total Belgium France Germany Italy Sweden UK N= 2460 424 413 403 401 400 419 Consumers Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 20

Primary Reason for Contacting Provider about a Bill or Statement Perceived billing error Unclear transaction information Change of address or contact details Service cancellation Response to a promotional message Other 100% 80% 60% 40% 20% 0% Total Belgium France Germany Italy Sweden UK N= 828 135 103 118 138 152 182 Consumer respondents who have contacted their billing / statement provider Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 23

Consumer Feelings about Receiving TransPromo Documents I would prefer not to receive documents in this fashion It is an environmentally-friendly alternative that I support I prefer this method to receiving additional mailings I prefer this method to inserts sent in the same envelope It serves as a more effective communication 60% 40% 20% 0% Total Belgium France Germany Italy Sweden UK N= 2460 424 413 403 401 400 419 Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 26

Actions Taken to Limit Amount of Promotional Mail Received Yes, my household is on a Do Not Mail list 15.6% No, I like to be informed about I am not on a Do commercial Not Mail list, but promotions have a NO 38.0% advertising sticker on my mail box 10.9% No, but I’m thinking of taking actions to limit the amount of promotional mail 35.6% N = 1,322 Consumers Source: InfoTrends Consumer Media Preferences Study Europe, 2009 © 2009 InfoTrends, Inc. www.infotrends.com 27

Takeaways from the Consumer Research • Bills and statements have unmatched openability  Strong argument for TransPromo • Consumers spend more time reviewing paper-based statements • Strong complement in electronic presentment  Significant time spent reviewing online statements  37% want to migrate to online statements • Marketers and document owners are challenged with providing relevant TransPromo communications that consumers will embrace © 2009 InfoTrends, Inc. www.infotrends.com 28

Familiarity with Term 'Transpromotional' No, not familiar Yes, somewhat familiar Yes, very familiar 100% 80% 60% 40% 20% 0% Total Belgium France Germany Italy Sweden UK N= 790 85 148 211 133 61 152 Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 30

Average Number of Pages (Individual Sheets) Per Envelope Pages Today Pages in 2011 5 4 3 2 1 0 Total Belgium France Germany Italy Sweden UK N= 501 49 99 39 85 22 107 Transaction Document Owners Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 34

Use of Digital Colour Printing for Transactional Print Yes No Don’t know 100% 80% 60% 40% 20% 0% Total Belgium France Germany Italy UK N= 395 35 81 108 63 94 Transaction Document Owners Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 37

Transaction Print Volume that will be Digitally Printed in Full Colour 2009 29.8% 2011 37.5% 2013 44.0% 0% 10% 20% 30% 40% 50% N = 361 Transaction Document Owners Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 40

Why Colour is Used on Bills and Statements It conveys a higher value to the customer To enhance graphics and promotional messages To highlight key information Our competitors are using colour Marketers asked us to do so Our customers have asked for colour 80% 60% 40% 20% 0% Total Belgium France Germany Italy Sweden UK N= 395 35 81 108 63 14 94 Transaction Document Owners who are using digital colour Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 41

Transaction Spending with External Service Providers 30% 26.2% 24.8% 22.5% 20.4% 19.8% 20% 17.2% 15.7% 10% 0% Total Belgium France Germany Italy Sweden UK N = 501 49 99 139 85 22 107 Transaction Document Owners Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 45

Most Important Factors in Selecting an External Service Provider Quality Delivery time Return focus to our core business Access to better/newer hardware technology Access to better/newer software technology Better understanding of compliance issues 100% 80% 60% 40% 20% 0% Total Belgium France Germany Italy Sweden UK N= 501 49 99 139 85 22 107 Transaction Document Owners Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 46

Estimated % of Customers that Will Adopt Electronic Presentment 2009 15.4% 2011 26.3% 2013 41.9% 0% 10% 20% 30% 40% 50% N = 133 Transaction Document Owner respondents who intending to offer e-presentment services Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 50

Expected Change in Spending on Transactions in 2010 Print Electronic 50% 42.6% 40% 35.8% 31.3% 29.3% 30% 27.1% 25.8% 20% 10% 0% Decreases Stays the Same Increases N = 483 Direct Marketers Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 51

Tools in Place to Optimise Targeting of Direct Mail Campaigns Yes No, but plan to by 2011 No, no immediate plans to Don't know 100% 80% 60% 40% 20% 0% Total Belgium France Germany Italy Sweden UK N= 286 35 47 72 48 39 45 Direct Marketers Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 52

Improvement in Response Due to Targeting Tools No, not at all 6.4% Yes 93.6% N = 94 Direct Marketers Source: Trans Meets Promo: A European Perspective, InfoTrends, October 2009 © 2009 InfoTrends, Inc. www.infotrends.com 53

Takeaways from the Direct Marketer and Document Owner Research • There is familiarity with TransPromo in Western Europe  Now is the time to build on the discussion • Full colour digital transaction print volume is expected to rise  It conveys a higher value to the customer  It can enhance graphics and promotional messages  It highlights key information • External service providers are rated by quality and delivery time first, and generally in that order • Electronic presentment will continue to grow  An integrated print and electronic approach is a smart approach • Invest in tools that will differentiate you from your competition! © 2009 InfoTrends, Inc. www.infotrends.com 54

General Session 2: Key Highlights from Trans Meets Promo: a European Perspective - Matt Swain and Kaspar Roos

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