One of the challenges in prospect qualification is knowing if you’re talking to the right person. How do you avoid spending a lot of time with someone who cannot make a decision on your proposed solution?

Sales expert and president of Digital Innovations Group Kate Dunn and PODi’s Dave Erlandson discussed this at a recent S3 Sales Training Session.

Kate: The first thing you need to do is ask good strategic-based questions. If they don’t answer the questions or don’t know, it’s is a good indicator that they are not a strategic thinker within the account. Most of your senior-level decision makers are going to be concerned about things like market share, profitability, productivity of high-dollar employees, conversion rates on their

leads and things like that. If your contact is not able to answer those kinds of questions it’s an indication that you are not at the right level within the organization.

Dave: I’ve found that if I ask this question early on in the sales cycle, I can save a lot of time and energy – “Let’s assume hypothetically that we are going to go forward with this project right now. What would happen next? What is the buying process?” If the prospect says “I have to get a signature from ‘so and so’,” that’s a pretty strong clue that they are not the final

decision maker. Then it’s important to understand if the signing person is just going to okay the request of your contact or if they really get involved in the decision process.

Kate: Be aware that in today’s economy senior decision makers are less likely to make a decision by themselves than they were 10 years ago. In fact a recent study showed that the single most important factor in getting the job was an ability to build support across the senior management team. So in today’s world you are going to have more than one decision maker to deal with if you are in a mid-or-large business. It won’t hurt you to develop those relationships with multiple decision makers. You just need to be sure to understand what their process is. Who is relying on who for input; who is going to participate in the decision; who has the stronger voice politically – those are the types of things you need to pay attention to.

See what’s next on the S3 Training schedule or review past recorded sessions.

Business Objectives: AlphaGraphics in the Cultural District wanted to mark their tenth anniversary with a celebration that would help build awareness of their services. A multichannel direct marketing campaign was developed that would:

• Express gratitude to existing customers
• Reinforce brand image
• Showcase their multichannel marketing capabilities and creativity
• Strengthen their partnerships with city leaders
• Give back to the community

Results: AlphaGraphics pledged to donate 5% of their revenue during their anniversary week to help two local charities – Family Hospice & Palliative Care and Pittsburg Parks Conservancy. They promoted the event with expertly integrated cross-media, which included social media (Facebook, blog), email, landing pages & website, direct mail postcards with Personalized URLs, contests, press releases & telephone on-hold messages and signage. Audiences were touched many times, through many channels.

At their open house AlphaGraphics was proud to announce that each organization received $3,000. Other results: 331 invitations to the anniversary party were sent, 82 responses received (24.8%) and 56 guests welcomed (16.9%) AlphaGraphics also received several requests from clients to create similar campaigns for their own initiatives

Read more about how this campaign was structured and why it succeeded.

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As we saw last time, the overall volume of print is in decline and printing companies are scrambling to find strategies to not only survive, but to grow revenue and margins.

What are Companies Doing?

1. Acquire competitors
2. Become the low-cost producer for a niche
3. Add new services complementary to print
4. Use technology to change the way print is ordered and managed. In this scenario companies don’t have to create what is printed, just produce it more effectively
5. Add marketing expertise and technology to manage the marketing process which includes creating what gets printed – commonly referred to as becoming a Marketing Service Provider

Let’s explore the fifth option to see how companies are leveraging technology to create new ways of producing print. (Miss Part 1 or 2?)

CHANGE HOW PRINT IS SOLD, ORDERED AND MANAGED

Many companies today are using the internet, workflow automation and digital printing to create new business models that are changing the way print gets sold, ordered or managed. Here are some examplesSelling Print over the Internet vs. with Sales Personnel Some companies like Vista Print, Mimeo and 48HourPrint

are changing the way print is sold. Rather than hiring sales people they are using the reach of the internet to attract buyers. While the costly expense of sales personnel is avoided, companies that choose this model pay large sums to Google and Yahoo and Bing to appear on the first page of search results. This strategy also requires an investment in a user-friendly web interface.

From Print-and-Store to Print-on-Demand

A printer in St. Paul MN, Western Graphics, has the service mark “Helping Our Clients Print Less” (sm). They work with their customers to produce just what is needed and avoid sending materials to a warehouse for storage and then later fulfillment. For example, one customer used to print long runs of multiple components and these components were sent to a warehouse. Then later a crew would pick and pack the components to make a complete order. Western Graphics redesigned the process to print smaller quantities and print the components sequentially so that complete packets were created at the time of printing, thereby avoiding the pick and pack operation all together. Print costs were higher but the overall cost of the process was lower for the customer, and margins are higher for Western Graphics.

Collateral Management with Web to Print Technology

The old process was to print sales collateral in bulk and mete it out to sales personnel, dealers, agents and franchises in bulk. The collateral was not personalized, took days to get after ordering, and often became obsolete as product changes occurred.

The new process allows users to order what they need anytime 24×7, personalize it and receive it quickly. Users prefer the convenience and personalization while the marketing department saves on labor and waste, while protecting brand integrity through the channel.

Automated Print Management with Web to Print Technology

This is the same scenario as collateral management only the web to print technology is used to automate the print ordering process for the print buyer(s) at the customer location. Using this technology, customers can submit an order, get a price and approve a proof all from their computer. The printer has lower

handling costs per order as all files arrive print-ready. And because switching costs are relatively high this solution is “sticky”.

Creating Customized Enrollment Kits

When health insurance company CareFirst a gets a new customer they send that customer a personalized booklet that explains their specific medical, dental and pharmacy benefits. Prior to switching over to this newer process, customers received static, same to all information in a folder. The old process had higher costs and customers were given lots of irrelevant information. The new streamlined process is a win for the customer, for CareFirst and for the service provider who runs the program for CareFirst.

Automating Manual Processes

Professional offices such as dentists and doctors lose significant revenue when a patient forgets to keep an appointment. A common practice was for an administrative person to send out postcard reminders. This process required labor and often first class postage was paid. A clever service provider created an appointment reminder application that integrates directly into the major CRM system used by the majority of dentists in the US. This application is sold to dentists by the CRM provider. The CRM provider gets new revenue and the service provider gets a steady stream of print jobs each day.

SUMMARY

As the total market for print declines printers need to find new strategies, some to just survive, and for others to thrive. For some the strategy is acquisition, for some it is low cost. There are other choices for those that are willing to look at print in a different way, as part of a bigger communication process. By using digital technology and marketing know-how companies are finding new ways to expand their reach and change the playing field in their favor.

If you would like more help moving your printing business to a more profitable model, PODi has a wealth of resources that can help you and your team understand your options, learn about new applications and opportunities, and sell more high-margin digital print solutions. www.PODi.org

As we saw last time, the overall volume of print is in decline and printing companies are scrambling to find strategies to not only survive, but to grow revenue and margins.

What are Companies Doing?

In Part 1, we’ve already explored the first three strategies:

Acquire competitors Become the low-cost producer for a niche Add new services complementary to print Add marketing expertise and technology to manage the marketing process which includes creating what

gets printed –commonly referred to as becoming a Marketing Service Provider

• Use technology to change the way print is ordered and managed. In this scenario companies don’t have to create what is printed, just produce it more effectively

This time we’ll discuss the 4th option – becoming a Marketing Service Provider. (Miss Part 1?)

MARKETING SERVICE PROVIDER

If the definition of a marketing service provider is someone who sells directly to the marketing department and not to a print buyer, then there are two types of marketing service providers.

• There are service providers who focus on executing marketing processes. They don’t do the creative, but they’ll take on the rest of the process. They go by various names – marketing operations, marketing logistics, marketing print partner, solutions provider.
• Then there are service providers who create the content that gets delivered (including print). They focus on direct marketing programs and manage the entire process from creative to response tracking.

Marketing Operations Strategy

This is a great strategy for printers who don’t have the wherewithal to create and sell marketing campaigns. In this strategy the printer works directly with the customer’s marketing department (and often with the customer’s agency) to manage and deliver marketing programs.
Here are some examples:
Automated Collateral Management with Web to Print Technology

Rheem manufacturing company sells its product line through a dealer network. Sales collateral was designed by the marketing department and an agency, produced in large quantities and shipped to a storage facility for distribution. An administrative assistant handled dealers’ order print materials and would place orders to be picked and shipped to the dealers. Each year a significant amount of collateral became obsolete. Now a web to print collateral management system has been installed that provides dealers with the ability to order collateral online. Orders are received automatically and printed daily. Costs are reduced for Rheem, brand control is ensured, and dealers can place orders at their leisure and get up to date materials. It’s a classic win-win scenario.

Direct Marketing Operations

Direct mailers typically fit this model. They handle the backend of the process from data to response analytics.

Now digital printers and commercial printers are moving into this space and adding cross-media to the mix. The data processing, analytics, personalization, QR Codes and Personalized URLs are all higher margin services.

This strategy is ideal for printers who want to move up the value chain to add higher margin services, but don’t have the ability to sell and create marketing programs.

Become a Marketing Partner – Get on the Marketing Team

Instead of waiting for your customer to call up and order new brochures to support a new product launch, you proactively get engaged in the customer’s marketing plans as one of their partners. This partnership could be as simple as being the print partner – reviewing each print design, offering suggestions on how to keep costs low and making sure the project schedule has enough time allotted for all the steps required for a successful launch or customer event or special promotion. If you can get on the marketing team, then you can get the print and additional services as well.

A Critical Part of the Strategy One critical element in any of the operations strategies is to own the relationship with the customer. If you do not have a direct relationship with the customer you are at risk of being supplanted by someone else.

Marketing Service Providers

Printers are transforming their business from being printers to becoming marketing service providers. This transformation requires new skill sets that include marketing, data, IT and solution selling. But by capturing the entire marketing process, from strategy to response analytics, these companies are earning the highest margins.

Here are some examples:

From Direct Mail to Cross-Media Marketing

Company A was a long time direct mail print provider for a non-profit organization. For each new direct mail campaign the non-profit would send the specifications over to Company A and they would quote and then produce the job. Along comes Company B with a better way to solicit donors using the latest cross-media techniques. Company B wins managing the entire campaign, which includes all the printing, plus a host of complementary services too. Company A has just lost out without even getting the chance to bid on the print job – ouch. Company B has just “changed the game”.

Data Driven Marketing Programs

Some companies specialize in putting personalized data on direct mail pieces and other printed collateral. They personalize marketing elements with information such as an individual’s name, recent purchase activity, special promotional offers, variable messages and images—making the experience unique and relevant for each customer and/or prospect. This includes trigger-based

marketing, which is a marketing program that is linked to a client action which triggers the marketing program. And it includes the use of advanced analytical models to drive more relevant communications and ultimately higher response rates.

Next week we’ll take a look at how innovative companies are using technology to change the way print is ordered and managed.

If you would like more help moving your printing business to a more profitable model, PODi has a wealth of resources that can help you and your team understand your options, learn about new applications and opportunities, and sell more high-margin digital print solutions. www.PODi.org

We are coping with unprecedented industry consolidation and declining print volumes. NAPL reports that the number of U.S. printing industry establishments shrunk by almost 25% between 1998 and the end of 2011. Over the past 12 years, almost 10,400 businesses closed.

As the overall volume of print declines, printing companies are scrambling to find strategies to not only survive, but to grow revenue and margins. Companies realize that with declining volumes in a market most often perceived as a commodity, price becomes the deciding factor. This places huge pressure on margins. Companies need to find alternative strategies to alleviate this pressure.

What are Companies Doing?

We routinely see successful companies doing one of the following:

1. Acquire competitors
2. Become the low-cost producer for a niche
3. Add new services complementary to print
4. Add marketing expertise and technology to manage the marketing process which includes creating what gets printed – commonly referred to as becoming a Marketing Service Provider
5. Use technology to change the way print is ordered and managed. In this scenario companies don’t have to create what is printed, just produce it more effectively

We’ll explore all these options in more depth in a 3-part series here on the Caslon Blog. Let’s start with the first three directions.

ACQUIRE COMPETITORS

In a commodity market, excess capacity drives down prices and profits. Some industries are great at managing capacity. For example, the paper industry routinely takes mills out of production when demand drops. The pace of acquisitions in the printing industry is high as companies with cash can easily find companies that have fallen into financial hard times and can be purchased for a good value.Typically the purchase just

centers on acquiring a customer base and the added production equipment is less important.

LOW-COST PRODUCER

While the market for print is declining, it’s still a very large market. And in a commodity market where price is the deciding factor the low-cost provider will win the majority of the jobs.

No one company can become the low-cost provider for every printing job. Printing equipment is designed for different run lengths and configurations. Each company has to pick a niche where they can be the low-cost provider and tie that niche to a market segment that they will serve. Some companies are set up for high-volume production. They have the largest presses that run at the fastest speeds. Economies of scale allow them to reduce costs and price low.

Other companies are set up for large numbers of short-runs, with printing equipment geared for shorter runs and configured to minimize the cost of those orders.

COMPLEMENTARY SERVICES

If we look at print as part of a process then we can look at the additional steps in the process, either upstream or downstream from printing, which can be offered as a service.

Two of the most common services that commercial printers add are mailing and fulfillment. This is because, after printing, a piece has to go somewhere and that is either directly into the mail stream or to a warehouse for later shipping to the customer.

This is not a new idea. Letter shops started out by handling the mailing of printed pieces in the most cost efficient manner. Their main value was in minimizing mailing costs. As this business became a commodity many letter shops expanded their operation to include print. Then they added data services. Some have continued to take on additional steps in the process and now offer creative, analytics and call centers.

Next week we’ll see how service providers who combine technology with marketing expertise create the biggest opportunity for high margin growth.

If you would like more help moving your printing business to a more profitable model, PODi has a wealth of resources that can help you and your team understand your options, learn about new applications and opportunities, and sell more high-margin digital print solutions. www.PODi.org

Business Objectives: Business Objectives: Ten Thousand Villages is an exceptional source for handmade gifts representing artisans in Asia, Africa, Latin America and the Middle East. One of the world’s largest fair trade organizations, the company strives to improve the livelihood of disadvantaged artisans in 38 countries. The company has 80 branded Ten Thousand Villages fair trade retail stores throughout the United States.

In the past, the Ten Thousand Villages marketing department had to create and design individual marketing collateral for each store. Due to limited employee resources, they needed a new solution that would: Empower stores to create and personalize their own marketing collateral, letterhead, postcards, and business cards

• Retain corporate control over the design and brand integrity
• Allow corporate to create spending budgets for each store and track on the site
• Allow stores to upload and manage customer mailing lists

Results: An online marketing management portal was developed for Ten Thousand Villages by their service provider, The Standard Group. The deployment of this portal has achieved the following:

Streamlined the ordering and production of marketing collateral Empowered individual stores to create collateral that meets their specific needs while reducing the workload on the corporate marketing department There are currently eight products on the site,

with multiple versions of each product

• Within a few of months of the portal’s launch 188 unique orders were placed and delivered to 29 different states
• Custom web development and CSS styling were used to create a site meeting Ten Thousand Villages’ design requirements

Read more about how this campaign was structured and why it succeeded.
PODi members can download the full case study

Nonmembers: Get a complimentary copy for a limited time

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Business Objectives: Miami University had revamped its Honors Program to give students the opportunity to shape their studies and explore interests beyond the traditional classroom.

Eager to increase awareness of—and enrollment in—its cutting-edge program, Miami University needed a cutting-edge strategy to: Prove that customized, data-driven direct marketing generates more interest among the targeted audience—high potential high school students Increase Honors website traffic Capture information from prospective students to make future communications more relevant Increase attendance at on-campus visitor events Increase the number of prospective Honors applicants Increase enrollment in the Honors program

Results: Through multi-channel communications including variable data personalization, Personalized URLs, direct mail and email, Miami University enjoyed a number of successes including:

Personalized URL Response 39% of visitors completed survey form 89% of students who completed survey received the variable mailer 99% of respondents were interested in receiving future communications

• Applicants & Enrollment
• Strategic targeting reduced print & mailing costs by 29%
• Total applicants increased by 4%
• Enrolled an incoming class 31% over goal

• Campus Visits
• Increased total student visits by 32%
• Achieved a 300% increase in Scholar Saturday visits

• Proving the power of relevant marketing
• 90.5% of enrolled Honors students responded to the data-driven mailer; only 9.5% received control mailers
• 94% of prospective students who responded received the variable mailers – representing a 1,466.8% increase in response over the control
• 98.5% of suspects converted to prospects came from the variable campaign, a 6,610.6% advantage over the control campaign. (Suspects were students with no known prior contact but who fit the University’s basic academic profile. Prospects were students who expressed some level of interest)

Read more about how this campaign was structured and why it succeeded.

PODi members can download the full case study

Nonmembers: Get a complimentary copy for a limited time

PODi members can access over 500 case studies 24/7 – JOIN NOW