Why Print Service Providers are Migrating to Web-to-Print SolutionsKey benefits, challenges, adoption rates among specific segments in the printing industry

a service of

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http://w2p.solutions http://w2p.cloud http://www.w2pshop.com

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EXECUTIVE SUMMARY

New research from NAPCO Research and Web-to-Print Solutions developers and providers, Racad

Tech, shows strong web-to-print (W2P) adoption rates across the commercial, in-plant, and

packaging printing markets. Those printers that have avoided W2P adoption thus far do not

appear to foster long-term reservations against the offering, so it is unlikely that adoption rates

will plateau in the near future. The benefits that current adopters convey – namely workflow

optimization and enriched customer experiences – will only put pressure on their more hesitant

counterparts to follow suit.

As with all emerging technologies, however, there are some kinks to work out. Lengthy implemen-

tation processes, feature sets that require ongoing maturation, and room for improvement in cus-

tomer support all take away from the full potential of W2P solutions. Still, the outlook for W2P in the

long-term is strong overall—forecasts project CAGR of 5.2% of print Web-to-Print shipments to $48

billion by 2021--and with continued focus on driving the product forward, adoption is expected to

continue to grow.

Going forward print service providers who have not yet adopted the technology must evaluate

the options—whether build vs. buy or the abundance of off-the-shelf vendors cautiously. There

is no ‘one-size-fits-all’ solution, and what works for one service provider may not be appropriate

for another.

To drive adoption and customer satisfaction forward, Web-to-Print vendors must improve on the

implementation process for Web-to-Print software, provide better customer service and develop

off-the-shelf solutions that are more customizable.

WEB-TO-PRINT: AN EMERGING PSP STAPLE

Much can be said about the promises of W2P. A Web-to-Print system allows the print service pro-

vider to open a 24/7 virtual storefront without paying for additional labor, introduces automation

into a manual workflow, and reduces friction for return business by enabling easy reordering, among

other benefits.

With the emerging importance of W2P solutions as a staple of commercial, in-plant, and packaging

printers, Racad Tech teamed up with NAPCO Research (the parent company of Printing Impres-

sions, packagePRINTING, and In-Plant Graphics) to better understand Web-to-Print adoption rates,

print service provider requirements, pain points, and opportunities of W2P end users.

To capture the printer’s perspective, NAPCO Research designed an online survey and fielded it to

commercial printers (Printing Impressions audience), package printers (packagePRINTING audi-

ence), and in-plant printers (In-Plant Graphics audience. The survey was fielded in June of 2018 with

a total of 651 survey responses collected.

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The graphic below depicts the distribution of responses.

QUESTIONS THAT WILL BE ADDRESSED:

• What are the adoption rates of web-to-print software by print service providers?

• Why are some printers avoiding web-to-print adoption?

• What web-to-print software solution offering are printers embracing? Why are some printers

internally developing their own web-to-print solutions?

• How satisfied are print service providers with their current web-to-print systems?

• What are the key pain points accompanying web-to-print solutions?

• What are the primary benefits and drivers of web-to-print adoption?

• What can Web-to-Print vendors do to drive adoption of W2P solutions and increase custom-

er loyalty?

• What can print service providers do to maximize the business opportunity presented by

Web-to-Print?

The insights gained from the survey, explored throughout this report, will allow printers and related

stakeholders to assess their current web-to-print offering (or lack thereof) against those of their

peers and competitors, and identify how best to move forward with the opportunity.

It will also inform web-to-print providers about the factors and features driving W2P adoption, the

problems restricting it, and the unique needs of printers that their solutions must cater to for contin-

ued success.

Printer Type

Figure 1Q. Which of the following best describes your organization? n= 651Source: Web-to-Print Market Survey, NAPCO Research 2018

Commercial printer In-Plant Printer Packaging Printer

61%

27%

12%

80%

70%

60%

50%

40%

30%

20%

10%

0%

WEB-TO-PRINT ADOPTION RATES ARE STRONG AND POISED FOR CONTINUED GROWTH

Web-to-print interfaces are a pervasive offering among com-

mercial, in-plant, and packaging printers today, with about

half (50%) currently offering such capabilities. According to

the survey results, commercial (55%) and in-plant printers

(50%) are leaders in this regard, while package printers are

comparative laggards (30%). These numbers can be some-

what deceiving; technology adoption in the print industry is

typically a slow, plodding process, so that half of all printers

who have adopted a technology suggests fairly widespread

adoption. Nevertheless, there is still widespread opportunity

for adoption to continue to grow as print customers continue

to expect the convenience of Web-to-Print systems.

Moreover, 7% of the half of all printers that do not currently

offer web-to-print say they are either currently research-

ing web-to-print options or already have plans in place to

support W2P in the near future. This highlights the ongoing

shift that is making Web-to-Print systems a near mandatory

offering to print customers and we expect that transition to

continue to occur over the near and long term.

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Web-to-Print Adoption Rate

50%

n Yes

n No

Figure 2 Q. Do you currently have Web-to-Print capabilities? n=651Source: Web-to-Print Market Survey, NAPCO Research 2018

50%

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WEB-TO-PRINT EXPECTED TO GROW AS A PERCENTAGE OF OVERALL PRINT SHIPMENTS

Going forward, offline print shipments are projected to decline by CAGR of -6.0% by 2021, but

Web-to-Print is projected to grow by a CAGR of 5.2%, reaching $48 billion by 2021. This forecast

suggests print customers will increasingly turn to higher convenience web-based systems to submit

print jobs to service providers and service providers must be prepared with the right technology

systems to meet this demand.

PRINTERS AVOIDING WEB-TO-PRINT MUST REEXAMINE CUSTOMER NEEDS

Of those with no current plans to incorporate a Web-to-Print solution, or even explore what benefits

might result, most say they mostly avoid the investment because of a lack of the customer demand

to justify it (42%). These non-adopters also indicated that they have other higher organizational

priorities that take precedence (26%) and/or do not have the support from management to fund

necessary buy-in to the technology (25%).

22% OF PRINTERS not offering web-to-print say it is because it is too expensive. The mean annual cost of a W2P solution is about $15,000

Print Industry Shipments: Total vs. e-commerce

$37 $40 $43 $43 $45 $48

$84 $77 $71 $70 $66 $62

2016 2017 2018 2019 2020 2021

Figure 3Source: Keypoint Intelligence – InfoTrends, 2018

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Interestingly, W2P enthusiasts say that catering to customer demand and providing a better cus-

tomer experience are actually some of the top reasons for implementing it. That the opposite (a lack

of customer demand) is the top reason for web-to-print avoidance begs the question whether those

who think there is no customer demand for the solution are, in fact, fully plugged in to their custom-

er base’s needs.

Whatever the cause of this discrepancy may be, customer demands for easy online ordering, job

tracking, inventory management, etc., will only continue to grow and apply more pressure on print-

ers to adopt W2P as expectations for fast, digitally-driven conveniences continue to penetrate all

facets of life and business.

As the print industry—and business world in general—continues to shift to digital technologies, and

print customers expect increasingly digital and seamless ways to interface with their service provid-

ers, we anticipate the ‘lack of customer demand’ objection to decrease in significance. With these

shifting expectations, we also expect ‘other higher organizational priorities’ and ‘lack of manage-

ment buy-in’ to also fade, paving the way for increasingly widespread adoption.

Web-to-Print Deterrents

Figure 4Q. Why don’t you currently have Web-to-Print capabilities? (Select all that apply) n=304Source: Web-to-Print Market Survey, NAPCO Research 2018

Lack

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50%

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0%

MOST PRINTERS PURCHASE OFF-THE-SHELF W2P SOLUTIONS, BUT INTERNALLY DEVELOPED SOLUTIONS ARE CONSIDERABLE COMPETITION

When faced with the ‘build’ vs. ‘buy’ dilemma, nearly ¾’s of

W2P-enabled printers are choosing to purchase off-the-shelf

solutions (72%) v/s building a solution themselves (28%).

This is likely reflective of two phenomena: First, off-the-shelf

solutions have evolved such that they are robust solutions for

the majority of printers. Second, there is substantial effort

involved in the internal development, deployment, and main-

tenance of internal solutions such that most see the value in

outsourcing that to the experts.

Although most current web-to-print adopters have acquired

an off-the-shelf solution, nearly a third (30%), have allocated

IT/developer resources to build a customized, system. Oth-

er than EFI’s Digital StoreFront, internal development of a

custom solution is the single most popular strategy for those

surveyed. This means, in addition to combating indifference

(e.g. ‘lack of customer demand), Web-to-Print vendors are

also up against the ‘build-vs.-buy’ challenge, which makes

the need to clearly articulate the ‘buy’ value proposition even

more critical.

Nevertheless, of those who chose to build their own solu-

tions, the biggest percentage cited the unique, and some-

times complex, needs of key customers and client bases

(54%) as the reason they chose to build. Printers that invest

resources to develop proprietary, internally built web-to-print

systems also simply have a culture of developing technology

solutions in-house rather than outsourcing (32%) and feel

they need a more robust, customized platform (28%).

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W2P Technology: Build vs. Buy

72%

n Off-the- Shelf Technology

n Proprietary/Internally Built System

Figure 5Q. What Web-to-Print system(s) are you currently using?  If you use more than one system, please select all that apply. (n=317)Source: Web-to-Print Market Survey, NAPCO Research 2018

28%

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To make inroads into the market and give print service providers who require more than ‘off-the-

shelf’ functionality greater flexibility when making the ‘build-vs.-buy decision, Web-to-Print vendors

should consider offering a highly flexible, customizable web-to-print solution. This will help to open

up almost a third of the market that is otherwise closed off to what-you-see-is-what-you-get alter-

natives.

A final note on proprietary W2P systems: packaging printers are much more likely (41%) to internal-

ly develop their own solution as compared to in-plant printers (24%) and commercial printers (32%).

This may mean that service providers may need to work harder to make inroads in the packaging

market to overcome the instinct to build their own solutions.

For those in the market for a W2P solution, it is important that print service providers recognize

there is a wide range of solutions available to them. What works for a large university in-plant may

not work for a small ‘mom-and-pop’ commercial printer on Main street, USA. Printers must carefully

evaluate market solutions, obtain demos from as many vendors as possible, and talk to colleagues

who have already adopted the solution about their experiences.

Internal Development Drivers

Figure 6Q. What were the key drivers for deciding to internally develop a Web-to-Print solution vs. sourcing an off-the-shelf offering (or in addition to an off-the-shelf system)? (Select all that apply) n=76Source: Web-to-Print Market Survey, NAPCO Research 2018

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20%

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WEB-TO-PRINT SENTIMENTS ARE POSITIVE, BUT THE IMPLEMEN-TATION PROCESS AND FEATURE FLEXIBILITY COULD IMPROVE

For print service providers that have integrated a web-to-print

solution into their business model, sentiments regarding the

technology are generally positive. More than three-fourths

(78%) of W2P-enabled printers are somewhat or extremely

satisfied with their current solution. Still, it is not a flawless

ecosystem and there is certainly room for improvement.

One key metric that communicates a primary pain point is

that over two-thirds (68%) of print service providers with a

web-to-print system had a somewhat to extremely difficult

time with the initial implementation process. Even if most

are happy with their W2P solution once it is up and running,

it does not bode well for a vendor if its good reputation and

word-of-mouth recommendations come with the caveat of

an arduous implementation process. Given the pervasiveness

of this problem, a smooth implementation process presents a

key differentiation opportunity for a web-to-print provider to

stand out. It also drives the earlier point home that due dili-

gence on the vendor that printers choose is critical to avoid

implementation headaches.

Looking past difficulties with the implementation process

there is an equally distributed breadth of reasons for printer

dissatisfaction, but they can be simplified into two catego-

ries: inflexibility and a lack of proper service and support. The

inability to expand system capabilities in line with growing

customer demands (14%), unfulfilled expectations (13%), and

a disconnect with existing systems (11%) speak to the need

for more feature-rich, open platform, expandable solutions.

These issues also align with the reasons why PSPs choose to

internally build their own proprietary W2P system.

41% OF PRINTERS have their W2P solution integrated into their management information system (MIS) while 31% are relying on third party integration.

A lengthy implementation process (11%) and lack of customer training and support (10%) explain

the need for W2P software providers, as a whole, to provide better customer service. Building out

a more flexible and robust solution is a tall order, but improving customer service and support is a

manageable starting point for elevating web-to-print satisfaction levels among printers.

Key Considerations in Web-to-Print Software Acquisition

• Ensure you have a thorough

understanding of the

products, features and pricing

for your general offering.

• Recruit your Human

Resources department to

assist in managing the system

and influence customer

service policies and procedure.

At minimum, verify that the

W2P provider has a service

department that will be able

to manage customer service

issues as they arise.

• One-size-does-not-fit-all, so

make sure the Web-to-Print

vendor is open to product

customizations.

• No one vendor can be

everything to everyone so

make sure the W2P vendor

can integrate with 3rd party

systems.

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ENHANCED CUSTOMER EXPERIENCE AND OPERATION-AL EFFICIENCES SEEN AS KEY WEB-TO-PRINT BENEFITS FOR PRINTERS

There is an almost even split of survey respondents that either do or do not currently deploy a web-

to-print solution, but the technology’s potential benefits are not lost on any of them —including the

non-adopters. Among the printers surveyed, the most alluring features of W2P amount to offering

an enhanced customer experience. The industry largely views allowing customers to order 24/7

(57%), easy reordering (48%), and automated PDF conversion of native documents (37%) as being

the most beneficial features. These non-trivial percentages--and wide distribution across reasons—

suggests even those who do not currently have a Web-to-Print system are clear as to its benefits.

The top reasons printers have added W2P to their existing product offering, are slightly more op-

erational in nature. The fact that web-to-print adoption fits into a printer’s overall strategy to drive

workflow process automation (51%) is the number one influencing factor driving investment. This

suggest a tacit acknowledgement on the part of printers that the industry continues to drive to-

wards technology and automation overall.

The need to satisfy customer demand (45%) is the second most significant driver for adoption.

Finally, enabling expansion into customer fulfillment services (41%) is the third most prevalent driver

that has led PSPs to adopt a web-to-print solution.

Most Beneficial W2P Features

Figure 7Q. Which features of Web to Print do you find/would you anticipate finding most beneficial? (Select up to five) n=504Source: Web-to-Print Market Survey, NAPCO Research 2018

Allow

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stom

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to o

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24x7

57%

48%

37%

32% 31%26%

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RECOMMENDATIONS

FOR PRINT SERVICE PROVIDERS:• Don’t Underestimate Customer Demand for Web-to-Print Solutions

The primary reason PSPs have for holding off on web-to-print implementation is a lack of

customer demand. On the other hand, adopters of W2P solutions say catering to customer

demands and bettering customer experience are some of their main drivers for embracing

W2P and digital storefront capabilities. If the former scenario describes your organization,

this is a discrepancy you should not write off; talk to some of your biggest customers about

how more automated, web-to-print workflows may benefit them. Just because they have not

expressly demanded web-to-print capabilities does not mean they are disinterested, it may

mean they simply are not educated about the possibilities.

• Educate Yourself and Evaluate Your Options

If you are considering your web-to-print options for the first time, heed the frustrations that

some users of the technology express: an inability to expand system capabilities in line with

growing customer demands, unfulfilled expectations, and a disconnect with existing software

systems. These issues also speak to why some PSPs decide to develop their own proprietary

W2P solutions. The lessons here are to be well-versed in your current technology stack in or-

der to ensure compatibility and a smooth integration, to prioritize flexibility and customizabil-

ity when evaluating your options, and, perhaps most importantly to carefully evaluate your

options when it comes to vendors and the build-vs.-buy decision.

• Prepare for What’s Coming

More than two-thirds of printers have had a difficult time deploying W2P. This should not

discourage the technology, however, given current users’ stated workflow efficiency benefits,

happy customers, extended service offerings, and steps taken towards overall automation.

Printers must be prepared for what’s coming by ensuring all stakeholders are prepared for the

implementation process and ready to meet it head on.

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FOR WEB-TO-PRINT VENDORS:

• Be Proactive About Making Web-to-Print Implementation Easier

Over two-thirds (68%) of print service providers with a web-to-print capabilities in place had

a somewhat to extremely difficult time with the implementation process. For web-to-print

vendors, this should be a cause for concern. Reach out to your customers and initiate an open

dialogue about their experiences/pain points in implementing your solution. It is crucial to

evaluate your own implementation/training processes to determine whether or not you are

contributing to this statistic. Regardless of where you stand, consider the ways in which you

can shorten and simplify the process of integrating your solution for an attractive point of

differentiation.

• Study the Competition

The Web-to-Print landscape has a wide variety of solutions that vary from robust to basic and

everything in between. Web-to-Print providers should familiarize themselves with competi-

tors positioning, key features and support options. How well positioned are you amongst the

offerings? How does the market see you? What gaps exist between your offerings and the

nearest competitors that you can fill?

• Commit to Overall Improvement—in Technology and Service

While satisfaction with web-to-print solutions is positive overall, there are shortcomings to

address. Some areas of W2P dissatisfaction are not in your immediate control, like shifting

customer demands and a disconnect with printers’ existing systems, but others are a man-

ageable enough fix. Committing to improved customer service and support will go a long

way in limiting your clients’ woes. We’d like to repeat this study a few years from now and

see substantial improvements in customer satisfaction and overall adoption!

Racad Tech Web-to-Print Solutions• Racad’s W2P Solutions price ranges from $2400 to $12,000 with a mean annual cost of $6600.

• Due to their technological flexibility and openness to custom requests, Racad’s W2P technolo-gies have been the “go to” solution for companies wishing to migrate off of proprietary solutions saving tens of thousands of dollars annually.

• Companies include well known franchises, trade printers and Banks such as indivdual BCT’s, Print Three Franchising, Braund Supergraving and First American Bank

• Implementation time for most of Racad’s W2P clients is 4 weeks.

• When printers lack the HR or the skill sets to set up and manage their own W2P Solution, Racad offers a labour based service that will do the technical work for their print customers.

• One size does not fit all, but Racad’s advancements and adaptability flow from customers’ cus-tom requests.

a service of

Led by a former Forrester Research analyst, the NAPCO

Research team crafts custom data-centric solutions that

leverage our highly engaged audiences across the markets

in which we operate, our industry subject matter experts and

in-house research expertise. We partner with our clients to

identify their unique business problem and create solutions

that enable deeply informed decision-making.

Contact research@napco.com to talk with our research team

and find out how we can help you with your research needs.

Having launched their initial system in the late 90’s, W2P

Technologies by Racad Tech revolve around 3 essential

principles that are the cornerstone of their development

culture to ensure a satisfied and profitable client base. W2P

Solutions by Racad are technologically advanced, adaptable

to a plethora of scenarios, and affordable. Their offering can

be broken down in to 2 synergistic technologies – W2P Shop

for B2C, and W2P Cloud for B2B. These solutions achieve

the ultimate flexibility through a modular infrastructure. As

a multi- platform and a multi-template system, print service

providers can publish their products on their own website,

using WordPress, Shopify or use the W2P Cloud. They are

also not restricted in how products are presented since

there are multiple ways to present products such as online

estimates, Upload Documents and Template Builders using

PDF, InDesign/XMPie, HTML5, SVG and 3D Packaging. The

W2P Cloud system aggregates all the orders and manages

them in a single dashboard.

Suited for any level of print and graphics infrastructure –

small, mid-sized, or large businesses – Racad’s online printing

solutions have a strong track record in helping printing

companies display their ideal online ordering portals and

improve production work flows, profitability, and efficiency.

For more information, please visit us at the websites below:

Corporate site: http://w2p.solutions

B2B Platform: http://w2p.cloud

B2C Platform: http://www.w2pshop.com

WHO WE

ARE