Final Digital Presentation

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This presentation highlights the benefits of digital printing and the use of variable data for direct mail marketing.

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Final Digital Presentation

  1. 1. Digital Color Printing Trends and Opportunities <br />Kipenzi Chidinma<br />Marketing Director<br />2/25/2011<br />1<br />
  2. 2. Digital Color is Exploding<br />8xFaster <br />Growth Than <br />Traditional <br />Print!<br />Compound AnnualGrowth Rate<br />Digital Color<br />Traditional<br />2/25/2011<br />Source : CAP Ventures<br />Source: CAP Ventures<br />2<br />
  3. 3. 3/20/2008<br />3<br />What’s Driving Digital Growth?<br /><ul><li>Turnaround Time
  4. 4. Print on Demand
  5. 5. Variable Content
  6. 6. Run Lengths</li></ul>CAGR<br /><ul><li>59%
  7. 7. 43%</li></ul>70%<br /><ul><li>22%
  8. 8. Of four-color jobs are already less than 5,000
  9. 9. Of printers cite turnaround pressure
  10. 10. Digital Color will lead growth
  11. 11. Expecting their variable printing to increase in the coming year
  12. 12. Source: NAPL
  13. 13. Source: CAPV
  14. 14. Source: INTERQUEST
  15. 15. Source: Strategies for Management 2005</li></li></ul><li>Let’s look at an example of using VDP<br /><ul><li>First name personalization
  16. 16. Number of steps calculated based on address info
  17. 17. Turn by Turn Directions from house to store
  18. 18. #1 Selling Shoe in its category while campaign ran, (Sears)</li></ul>You can hike there in only 21,120 steps. But you might want to wait till you have the shoes.<br />2/25/2011<br />2/25/2011<br />4<br />4<br />
  19. 19. What is Personalized One to One Marketing?<br />Personalized Marketing is a way to have pictures, graphics, messages, offers, and calls to actiondiffer according to the needsof an individual recipient.<br />It is much, much more than changing the address block.<br />2/25/2011<br />5<br />2/25/2011<br />5<br />
  20. 20. The Power of Color<br /><ul><li>Awareness and Comprehension - Up 80%
  21. 21. Communicate and Sell Ideas - Up 88%
  22. 22. Timely Payment of Invoices - Up 30%
  23. 23. Learning and Recall - Up 55% to 78%</li></ul>Source: CAPV<br />2/25/2011<br />6<br />
  24. 24. 3/20/2008<br />Color + Personalization =Increased Response!<br />Plus 44%<br />Plus<br />500%<br />Plus 45%<br />Plus135%<br />Source: Digital Print Council<br />7<br />
  25. 25. 2/25/2011<br />8<br />The Power of Personalized One to One Marketing <br />A 34% faster rate of response<br />A 48% increase in repeat orders<br />A 25% greater average value of each order<br />A 32% increase in overall revenue<br />Source: CAPV Study for IBM<br />
  26. 26. 2/25/2011<br />9<br />Cost per Response – Not Cost per Piece<br />Example: Traditional Campaign <br />Budget: $100,000<br />Size of Mailing 285,714 <br />Cost per Direct Mail Piece $.35<br />Response Rate* 1.5%<br />Responses 4,286<br />Cost per Response $23<br />Source: Direct Mail Marketing Association<br />
  27. 27. 2/25/2011<br />10<br />Cost per Response – Not Cost per Piece<br />Example: Variable Content<br />Campaign Budget: $100,000<br />Size of Mailing 166,667<br />Cost per Direct Mail Piece $.60<br />Response Rate* 5%<br />Responses 8,333<br />Cost per Response $12<br />Source: Romano & Broudy<br />
  28. 28. 2/25/2011<br />11<br />Impact on Response Generation<br />Example: Campaign Budget = $100,000<br />TraditionalVariable Content<br />Cost Per Piece $ 0.35 $ 0.60 <br />Response Rate* 1.5% 5.0% <br />Size of Mailing 285,714 166,667 <br />Responses 4,286 8,333<br />Cost Per Response $ 23.33 $ 12.00<br />Net/Net: 1:1 Marketing costs less per response.<br />
  29. 29. 2/25/2011<br />12<br />Impact on Revenue<br />Example: Campaign Budget = $100,000<br />TraditionalVariable Content<br />Cost Per Piece $ 0.35 $ 0.60 <br />Response Rate* 1.5% 5.0% <br />Size of Mailing 285,714 166,667 <br />Responses 4,286 8,333 <br />Conversion Rate 20% 20%<br />Revenue Per Sale $ 200 $ 200<br />Total Revenue $ 171,440 $ 333,320<br /> Which campaign would you run?<br />
  30. 30. 2/25/2011<br />13<br />Forms of Digital Data: <br />- Printed Marketing Pieces - Customized Postcards<br />- Direct Mailing Pieces - Customized Magnets<br />- Targeted Mailings - Customized Printed Materials<br />

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