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I attended the ADMA Forum in Sydney last week and was interested to see that one conference track included a session on TransPromo. In light of the current TransPromo hype, I decided to go along for the ride and see if I could pick up anything new. Grant Stewart from Vectis presented the session. Alongside some local case studies, Grant answered some "interesting questions" on transactional-promotional mail which are worth noting. While these questions may seem obvious to many, they're helpful for those who are considering TransPromo applications and want to understand what value they can provide.
Q: Why is TransPromo all of a sudden a hot topic?
A: Grant explained that today's TransPromo buzz is because the "cost of doing it has come down". Grant's right, but I'd add that more specifically digital print vendors, including Kodak, Screen, Océ, Ricoh and Xerox have all recently announced new continuous-feed high-speed colour printers which now make these applications commercially viable and affordable. Colour cut-sheet printers (with speeds up to 110ppm) haven't been able to meet the demands of TransPromo, as you need to remember that TransPromo falls into the essential mail category, which, by its nature is produced in very large quantities, often millions, and within a very short time frame; typically within a two or three day window. These new continuous-feed printers now make full-colour TransPromo applications commercially viable, both in cost and production efficiency (speed).
Q: Does TransPromo cannabalise DM?
A: No, transpromo supports DM. Grant explained that when used correctly, marketing messages on statements can reinforce and complement direct marketing campaigns. A good point—TransPromo is yet another medium and touchpoint to reach your audience. A marketing message or promotion on a statement can be part of a much larger, multi-channel direct marketing campaign.
Q: Does TransPromo only work with mail?
A: No. TransPromo can also be incorporated in online statements, however Grant explained that online statements are not as effective as printed ones. Unlike e-mail, which can often sit unread for several days, mail is usually opened immediately. Also Grant pointed out that with essential mail, the person who makes the purchasing decisions in the household usually opens the statements and pays the bills. A key challenge of direct mail is often reaching the right person in the household, so this makes TransPromo a good channel. I'd also add that printed statements usually have a much longer shelf-life than electronic statements and DM—statements are frequently displayed in a prominent location in the household (i.e. the fridge door) and often studied several times.
Q: How much more does TransPromo cost?
A: Grant reckons that TransPromo is 15-20% more expensive to produce on average. I'd guess that the real cost is somewhat higher than this, probably up to 35%-40% more expensive in some cases, when you consider the additional marketing and data analytic effort required to produce these applications. However, you need to assess the cost per response, not the cost per piece. And if you're selling advertising space on a statement, the advertising revenue will often offset the increased production cost.
Q: How do you trial TransPromo?
A: As with any DM campaign, you need test in small sizes. Test, check responses, adjust and test again. Keep on testing until you've got enough data to deliver a business case on whether TransPromo will deliver the ROI that you're looking for. Also, start simple. While TransPromo gives plenty of opportunity to introduce highly customised messages and offers driven by a set of complex business rules and data (location, buying behaviour, income, etc), it's wise to start off small. The simple stuff works too.
Posted on Tuesday, 1 July 2008 at 11:40 PM | TrackBack: http://www.veedeepee.com/cgi-bin/mt-tb.cgi/159
I love the way Grant thinks and have had the pleasure of working with him — and I hope to do more soon. One thing I would emphasize is that TransPromo must be part of an integrated customer communication strategy. To just use the essential mail as the marketing contact will not bring nearly the results of ensuring that your web presence, direct mail presence and even mass marketing presence are telling a common story.
Posted by Pat McGrew, EDP on Thursday, 3 July 2008 at 3:34 AM
Intresting read again Eliot. The Transpromo phenomonon is getting more and more air time. Although I think it is time for another genre to spawn from this area (tongue in cheek), "Transpromo_Lite".
We are already creating some fantastic looking statements using complex business rules, rich dynamic design,cross-sell marketing logic within quite large runs. Such areas as mobile phone usage, affinity cards, air miles are all in essence transactional but probably not quite "must-read", but certainly not dismmisive throw away marketing.
Posted by Tim Ball on Thursday, 3 July 2008 at 6:09 AM
Concise and to the point, I enjoyed reading this article. I find our customers relate better to TransPromo when presented in the context of being a key component of a direct marketing strategy rather than a standalone marketing or relationship tool.
Posted by Bob Johnson on Friday, 4 July 2008 at 12:48 AM
Interesting. I believe the right way to TEST transpromo is using Email transpromo statement to see the response rate. This will highly increase the usage and save the testing cost and time!
Posted by Johnny Lu on Tuesday, 29 July 2008 at 8:10 PM
I think the TP costs stated here are a bit high--IF you employ a CF printer and a dynamic mail maker, like Megaspirea. This can reduce the # of steps you need to make a piece of finished mail and eliminates the need for pre-made envelopes, which must be ordered in advance, stored and staged, and then inserted into. TP has the ability to eliminate at least some direct mail and streamline communication processes. Most of the hard work can be done on the desktop where docs are composed and CRM databases consulted for offers and more personalization. TP reduces postage by combining purposes and eliminating unnecessary mailings.
Posted by Scott Gerschwer on Wednesday, 13 August 2008 at 2:02 AM