What is the “truth” about full-colour variable data printing? There is certainly enough hype to go around.
Prior to the 1993 introduction of the production speed digital colour presses (Indigo and Xeikon), the technology to print thousands of highly personalized, full-colour pieces did not exist. Rudimentary word processing mail merge on your personal computer let you create personalized black-and-white letters, and coarse industrial inkjet printers announced “You Are a Winner” in some sweepstakes or other.
Today, there are over 25,000 digital colour printers in the world at speeds over 40ppm. Software to drive these presses with variable data is now available from over 20 suppliers. In the past, applications for variable output were custom-written for specific presses or high-speed transaction printers and written by in-house information systems (IS) staff, or written for specific mainframe data management and transaction processing systems, such as the ones that generate your telephone bill.
Businesses today need to know that the expenses involved in a personalized print run will generate a profitable rate of return on their investment before they invest in it. With careful application of demographic science and selective data mining, it is possible to improve customer response from a typical level of two percent for generic “junk” mail to 50 percent or better in a well-planned personalized marketing program.
In 1998, Dave Broudy and I performed the only validated response rate analysis. It consisted of five mailings:
1.The most basic mailings (static, black-and-white) had a response rate that averaged 0.46 percent—which was under the so-called industry standard of one percent, but may be truly closer to an industry average.
2. Adding a name to the piece—a basic level of personalization—increased response rates by 44 percent over the Program 1 (the static, black-and-white mailing). There is anecdotal information that adding a name to a mailing no longer has the power it once had. In this test, at least, it did have an effect.
3. Adding full colour increased response rates by 45 percent over Program 1. It was surprising that this level of response was so close to the personalization level of response, but even more surprising that colour alone could have such a positive effect.
4. Adding name and full colour increased response rates by 135 percent over the Program 1 static, black-and-white mailing. Personalization and colour appear to be a double whammy and produce a significant increase in response.
5. Applying database information in constructing the offer and the piece increased response rates by over 500 percent compared with the Program 1 static, black-and-white mailing. Tying the mailing into something you know about the recipient—past buying habits being the most common—appears to provide a significant benefit. The database information should be used in such a way as to not threaten the recipient’s privacy.
Variable data printing works. But here is the dirty little secret about VDP: the really great stories about success rates are not discussed. Printers who are succeeding at VDP are keeping their ideas and response rates to themselves so that this profitable service is not commoditized.
