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Turning a cost centre into a profit centreThomas Wimmer

Transpromo

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Radio

Internet

TV

Invoice

Mobile

The challenge to reach the consumer

Newspaper

Direct Mail

Advertising

Collaterals

Spam Filter

SpecialInterest

Zapping

Pers. Filter

No Attention

No Advertising

Sticker

Background Enterteinment

On Demand

DirectDebit

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Traditional „blasting“ is not working any more

Consumers are not looking for more information…They are looking for LESS information that is MORE relevant

• Inability to reach customers

• Inability to achieve customer recall

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How much time do you spend on a document?

Group 1 UK Study, January 2008 “Are we paying attention?”

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The unutilized chance

83%

65%

72%

0% 30% 60% 90%

,I am opening themright away

I read them verycarefuly

I keep them withinmy pesonal

archive

Handling of Statements

Quelle: Empirische Studie im Rahmen des Seminars des Institute for Market-based Management (IMM), 2007

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Remembrance of marketing messages on a statement

Remembrance

45%30%

19%32%

36% 38%

0%

25%

50%

75%

100%

Invoice Insert

Not specified

wrong Brand

correct Brand

Ad recognised?

66% 77%

34% 23%

0%

25%

50%

75%

100%

Invoice Insert

No

Yes

On a first view, inserts generate a high attention but, remembrance is much higher within marketing messages implemented into a statement

Experiment: N = 119

Quelle: Empirische Studie im Rahmen des Seminars des Institute for Market-based Management (IMM), 2007

„If yes , from whom?“„Have you noticed an ad inside letter X?“

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The power of color

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The power of color

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The power of color

• The Pantone® Institute says that we are 78% more likely to remember words and phrases presented in color.

• A recipient is more willing to deal with a color rather than a black-and-white document.

• Reading time of colored documents is 80% higher than of black-and-white documents

• Color accounts for 60% of the acceptance or rejection of an object and is a critical factor in the success of any visual experience

• Brand identification increased 70% when colour was added

• The understanding of a document can be increased by 80% using color.

• Text content aims at the left part of our brain, color aims at the right part – addressing both parts accelerates the understanding of the complete document.

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Volume(A4 pages)Costs per envelopePaper € 0,005 8,3% € 0,010 10%Offset € 0,010 16,7% € 0,010 10%Digital € 0,006 10,0% € 0,040 40%Finishing € 0,014 23,3% € 0,014 14%Envelope € 0,018 30,0% € 0,018 18%Other costs € 0,007 11,7% € 0,007 7%Overall costs per envelope € 0,060 100% € 0,099 100%

Postage € 0,280 € 0,280

Costs per envelope € 340.000 € 379.000Response rate % 1% 4%Revenue per response € 17 € 20Generated Revenue € 170.000 € 800.000

Profit -€ 170.000 € 421.000

Black & White1.000.000

Color1.000.000

Color is worth spending money

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Volume(A4 pages)Costs per envelopePaper € 0,005 8,3% € 0,010 10%Offset € 0,010 16,7% € 0,010 10%Digital € 0,006 10,0% € 0,040 40%Finishing € 0,014 23,3% € 0,014 14%Envelope € 0,018 30,0% € 0,018 18%Other costs € 0,007 11,7% € 0,007 7%Overall costs per envelope € 0,060 100% € 0,099 100%

Postage € 0,280 € 0,280

Costs per envelope € 340.000 € 379.000Response rate % 1% 4%Revenue per response € 17 € 20Generated Revenue € 170.000 € 800.000

Profit -€ 170.000 € 421.000

Black & White1.000.000

Color1.000.000

Color is worth spending money

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Current production environment:Time and waste paper

© Pepper. A COMPUTERSHARE COMPANY

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Paper

Insert print

Form print

Forms Document print

Inserts

EnvelopingShipment

Out of the Warehouse

Database

Design Into the Warehouse

13© Pepper. A COMPUTERSHARE COMPANY

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Paper

Insert print

Form print

Forms Document print

Inserts

EnvelopingShipment

Out of the Warehouse

Database

Design Into the Warehouse

Economization of supply chain:Shorter Time-to-Market and less waste paper

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The evolution of a statement

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Characteristic of an invoice / statement

• Prerequisites– Contractual relationship between enterprise and customer– Usage of services by customer through defined period of time

• Intention– Overview on used services– List of billable services– Information on amount and due date

• Result– Payment of used services

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Linkage between invoices and communications?

In most cases no – Why ?:

• Responsible within an enterprise for billing is a specialised department (IT, Billing)

• Marketing has done its job by winning new customers payment / billing is not on their radar

• Invoices are historically not supposed to provide additional information

• Invoices are not yet recognised as powerful communication tools at marketing departments and / or advertising agencies

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Phase I

• Transactional Data imprinted in Offset Shell

• Advantages:– Brand security

– Secure production process

• Disadvantages– Plain cash flow oriented document

– No use of marketing and communication potential

– No increase in revenues or customer retention

Statements: From information to communication

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Phase II

• Transactional Data imprinted in Offset Shell & impersonalised Insert

• Advantages:– Additional information for customers– Usage or established channel for marketing

information– Potential for increased revenue and customer

retention

• Disadvantages– Two separated documents– Additional costs for

• Pre-print , shipment, warehousing and inserting

– Mass communication without individual added value

– Paper waste

Statements: From information to communication

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Phase III

• White Space Management with unpersonalised offers

• Advantages:– Only one document containg all information– Usage of whitespace for additional information– Optimised usage of document format– No pre prints and warehousing– Green

• Disadvantages– No guaranteed advertisment space– No option for selling advertisment space– No added value personalised communication

Statements: From information to communication

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Phase IV

• White Space Management with relevant & personalised offers

• Advantages:– Usage of whitespace with relevant information

based on transactional information– Higher potential for revenue generation– Optimised usage of document format– No pre prints and warehousing– Cost reduction in postage– Green

• Disadvantages– No guaranteed advertisement space– No option for selling advertisement space

Statements: From information to communication

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Phase V

• Transpromo with advanced layout and additional business opportunities

• Advantages:– Statement as a communication tool

– Response and revenue generation

– Increase of customer retention

– Additional business opportunity:

• Selling advertisement space through:– Designed content grid– Fixed advertisement space– Fixed advertisement size

Statements: From information to communication

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A measurable and efficient way for a positive ROI

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A constant flux

Company Lost Won Net. Growth

Moviestar 99306 93217 - 6089

Vodafone 79697 98278 18581

Orange 81149 63093 -18056

Yoigo 6931 10644 3713

Customer fluctuation with mobile phone providers in Spain (August 2008)*

Optimal communication with your existing customers reduces churn and creates budget space for targeted acquisition of new customers

* Comision del Mercado de las Telecommunicados

Transpromo with relevant added value for individual customers

Leveraging of existing cost structure for invoice delivery

Customer acquisition actions (DM, POI, POS, ads etc.) targeted at the correct profitable customer profile

Usage of marketing budget

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Debitel - Germany

• Objective:– Save and/or increase market share

– Optimise customer structure• Keep profitable customers / get rid of unprofitable customer

– Prevent current customers from churn

– Increase numbers of prolonged contracts

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Debitel - Germany

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Thank you very much