Print Solutions November 2006
Cover story
VARIABLE DATA PRINITING
By Andy Brown
Since when are customers the last to catch up? End users drive so many of their
vendors’ business decisions these days that it’s surprising to find them lagging when it comes to variable data printing and
1-to-1 marketing. They recognize the value in communicating to consumers with
custom messages, but they hesitate to go beyond basic VDP. Most end users aren't taking advantage of the technology, applications and expertise available to
them.
Variable data printing is the natural offspring of digital printing and database
management. It’s been around so long that some applications are fairly common. For example, end
users order direct mail to look as if each piece was personally addressed to
its recipient. Other solutions allow companies with branch locations to
decentralize print procurement but still control branding. Real estate agents,
for instance, can order business cards, postcards and brochures online with
custom text and graphics. These solutions—built by templates with fixed fields and limited personalization—barely scratch the surface of VDP’s current potential, but they’ve been driving a growing market.
Going Mainstream
The main obstacle between VDP and its widespread adoption is lack of awareness.
End users and the distributors that sell to them don't know how much VDP can do. For instance, some VDP software accommodates nearly
100 variables. This capability allows end users to send customized direct mail
to recipients based on their individual preferences. In theory, two recipients
who share 99 of the same variables, but differ on even one, could receive
different mailings.
Gathering that much detailed information about customers is another reason why
VDP isn't fully utilized. Most end users aren’t keeping track of their customers’ preferences in centralized, standardized databases. For distributors and
manufacturers who sell VDP, the first step after educating end users is to help
them prepare usable databases. The demand for VDP applications and their level
of sophistication is in some part driven by database management practices. When
end users streamline their processes for gathering and manipulating customer
information, their interest in VDP should grow.
Another obstacle to VDP is price. The applications often cost more per piece
than traditional printing, though the overall cost may be lower if fewer, more
targeted pieces are mailed. The result typically is higher response rates and
greater returns on investment. The challenge for distributors and manufacturers
is to demonstrate this to their customers.
A Matter of Time
The question is not if, but when will complex VDP applications be standard for
end users? The most optimistic distributors and manufacturers perceive the
current environment as training before the real game begins. Before end users
accept VDP solutions as mainstream, vanguard companies must work out the kinks,
streamline their processes and test innovative 1-to-1 marketing applications.
They're creating a knowledge base that other companies will find difficult to match
if they're just learning about the technology. They’ve already secured customers with basic applications, and they’re actively seeking more.
Other companies still see risk in VDP. For manufacturers, the equipment requires
a substantial investment in time and money, and a revision to their business
models. Distributors also have to consider whether the investment in training
and education is currently worth the return. After all, customers aren't walking through the door demanding a VDP solution. The sales cycle is
considerably longer, and the upfront cost to the end user can be considerably
higher. These companies will wait until more success stories surface and more
applications are proven.
The following pages address that need. Print Solutions has dedicated this issue
to companies selling VDP and 1-to-1 marketing applications successfully.
Andy Brown is managing editor of Print Solutions magazine. Email comments to abrown@PSDA.org.
