Getting Personal
At first glance, the print industry and the music industry don't have much in common. One primarily deals in assorted paper products. The other deals in Justin Bieber. Draw up a Venn diagram for that, and it would be two freestanding circles separated by three page-lengths of empty space.
But a closer look reveals a striking similarity. When the recession hit, the music industry realized that the compact disc, its longtime standard format, was no longer viable on its own. They were expensive to produce, allowed distributors little flexibility and offered virtually nothing in the way of personalized touches for consumers. To keep up with shifting market demands, the industry had to make a radical change—so it went digital.
Sound familiar? It should; it's the same story that played out in the print world, only with conventional print methods instead of compact discs. And now? Digital is in, and it's benefitted the print industry during the recession.
Data Papers, a forms printer since 1969, began offering short-run digital print in 2009, and has gradually been adding more digital print options to keep up with the ever-shifting marketplace. "We have not seen a decline in demand for digital print during these difficult economic times," said Jerry Wertz, president and CEO of the Muncy, Pennsylvania-based company. "Actually, we have seen nice growth in our digital sales, as many customers are choosing shorter, more personalized marketing campaigns with personalized URLs (PURLs) or video rather than mass direct mail."
Paul Edwards, CDC, president of FormStore Incorporated, Fenton, Mo., also believes that the personalization trend will continue to give digital print an edge. "Integrated marketing programs combining PURLs, personalized QR codes, e-mail, variable digital print (VDP) microsites, landing pages and campaign dashboards will drive growth in the digital print market this year," Edwards said. "Personalization on digital direct mail can lead to increased response rates and differentiate the marketplace," he added.
FormStore is so confident in PURLs as a marketing tool that the company has integrated them into its own sales kit, which includes samples and spec sheets from some of the company's core products. Edwards explained that adding a personalized URL to its promotional campaign mailer allowed FormStore to more easily convert direct mail recipients into qualified prospects and boost its customer base.
"The recipient [of the mailer] arrives at their customized landing page, which is consistent with the design and tone of the direct mail package, including a personalized greeting and pre-populated fields that help drive immediate response," said Edwards. "The recipient can read more about the offer and instantly respond to it, and also request additional information by mail. Each recipient has an account manager assigned to their response and receives a follow-up call and a complete set of the new sales kit, which includes a membership ID card product selector book, a vertical markets idea book and a sample portfolio."
Data Papers has found success with PURLs, as well. "We ran a campaign with our distributor for a religious organization that wanted to reconnect with current and former members and donors," Wertz explained. "Together, we reached out to 35,000 contacts with personalized postcards, directing recipients to their personal URL. On the PURL, we asked questions about philanthropy, where they would like to see contributions spent, suggestions for church practices, etc."
Another important aspect of digital printing is flexibility, especially in regard to digital's ability to combine with traditional printing options. Edwards noted that FormStore uses traditional offset printing for its membership ID card products, combining a pre-printed shell with variable print personalized elements in a digital second-pass print process. "We're seeing an increase in the personalization of our core products by combining the old (offset print) with the new (digital print) along with direct mail pieces," he explained.
Wertz agreed that the ability to combine digital with conventional printing methods is a major advantage of the format. "A new application we have been working with is customer retention and cross-selling," he said. "For this, we make use of printed pieces, QR codes, text messaging and video all tied together in a closed-loop system."
He mentioned a specific job where Data Papers, working with an international not-for-profit group, combined variable digital print with long-run static collateral printed on a conventional web press.
"Every day, we receive a list of donors who need a 'thank you' letter, which is printed VDP on our HP Indigo digital press, packaged with the static collateral and fulfilled in our packaging department," he noted. "We still see a strong market for personalized mailings that are aesthetically pleasing to the eye and the touch."
Of course, for all of these benefits, digital print has some limitations. Edwards pointed out that it is generally not cost-effective or cost-competitive when dealing with large quantities, leaving open a crucial niche to be filled by traditional print methods. Still, digital print excels in many areas that are simply unaccessible with conventional printing.
"Order what you need, when you need it and ship directly to where it is used," Edwards said. "This eliminates obsolescence, storage and insurance, and reshipping costs," he stressed.
Wertz concurred, noting that the shorter runs offered by digital print allow for smaller inventories, helping customers maintain flexibility to make copy changes and reduce overall material costs.
In the end, both Edwards and Wertz stressed that finding a reliable, experienced manufacturer or printer is key to providing a high quality digital print product.
"Digital printing helps end-users to run a low-cost personalized campaign quickly and efficiently, but it is only being offered by a small percent of total distributors," said Wertz. "To become successful, distributors should find an experienced digital printer who is willing to train [them] and provide support on a minute's notice."
Edwards took it a step further. "Adding your own digital press is like opening a black hole, since most purchases do not consider inventory, software, training, space, insurance, taxes and staffing," he concluded. "Leave the digital print and finishing to your manufacturing partners." 
- Companies:
- Data Papers
- FormStore