Increasing Your Print ROI with

Fast & Affordable Digital Color

Barbara Pellow
Group Director, InfoTrends

Tina Langton
Supervisor of Computer Processing, Red Rose Mailing Services, Inc.

Bob Rymarchuk
Owner, UBR Services

Casey Williams
Sales Representative, DataImage
 Topics

• Why Digital Color? Why Now?

• Three Unique Market Perspectives
– Direct Mail
– Small Commercial Printers
– Data Service Bureaus
• The Bottom Line
A Simple Question… Why is Digital Color So
Important in Today’s Market?
Color Print On Demand is Driving the Market

• Six Major Trends

1. Offset is moving to digital
2. Black & white is moving to color
3. Shorter run lengths
4. Mass customization/personalization
5. Utilization of the Web
6. Movement toward “super-efficiency”
Color Print On Demand is Driving the Market (2)

• Six Major Trends

1. Offset is moving to digital
2. Black & white is moving to color
3. Shorter run lengths
4. Mass customization/personalization
5. Utilization of the Web
6. Movement toward “super-efficiency”
 Not Everyone Gets It!

• Offset • Digital
– Longer runs (5,000+) – Shorter runs
(from one to thousands)
– Less expensive as run lengths
– Fast turnaround
increase
– Quality meets expectations for
– Higher image resolution
most printed materials
o Fine lines – Media options beginning to
o Screen tints expand
o Photos – In-line finishing – single step
– Broader set of paper alternatives process (stitching, folding,
trimming, perfect binding, etc.)
(thick and coated stocks)
 Income from Various Services: 2004 vs. 2008
What percentage of your income (total sales or revenue) do you believe comes from the following types of services?
Percentage Change

2004 2008

42.3% -7.7%
Conventional Printing
53.2%

8.7%
39.1%
Digital Printing
29.8%

18.5%
3.1%
Value-Added Services
13.9%

0% 20% 40% 60% 80% 100%

N = 270+ Commercial Printers Percentage of Respondents

Source: The Changing Print for Pay Market: The Future of Commercial Printing, InfoTrends, 2004
Source: The Future of Commercial Printing in the United States, InfoTrends, 2008
 Volume Moving from Offset to Digital
What percentage of your digital B&W and color volume (measured in pages) comes from the following categories?

30-40% of digital volume

Transfer from other 17.2%
from offset transfer
sources* 23.1%

Digital Color
38.1% Digital B&W
Offset transfer
34.4%

Volume from new

applications that 44.6%
could not be done 42.5%
conventionally

0% 20% 40% 60% 80% 100%

N = 278 Commercial Printers
Percentage
Source: The Future of Commercial Printing in the United States, InfoTrends, 2008 of Respondents
 Offset Is Moving to Digital

Source: InfoTrends
Color Print On Demand is Driving the Market
• Six Major Trends
1. Offset is moving to digital
2. Black & white is moving to color
3. Shorter run lengths
4. Mass customization/personalization
5. Utilization of the Web
6. Movement toward “super-efficiency”
 2. No Different than Television – Color Communicates!

• Color visuals increase willingness to read by

up to 80%¹
• Using color can increase motivation and
participation by up to 80%¹
• Color enhances learning and improves
retention by more than 75%²
• Color accounts for 60% of the acceptance or
rejection of an object and is a critical factor in
the success of any visual experience ³
• Using color in advertising outsells black &
white by 88%²

¹ The Persuasive Properties of Color; Ronald E. Green; Marketing Communications, October 1984.
² Loyola University School of Business, Chicago, IL., as reported in Hewlett-Packard's Advisor, June 1999; (http://www.hpadvisor.com).
³ The Power of Color; Dr. Morton Walker; Avery Publishing Group; 1991.
 Black & White is Moving to Color
Annual Impressions (U.S. POD) Overall 4% CAGR
782 B
800

700 630 B Color 25%

CAGR
600
Annual Impressions (B)

500

400

300
BW
-3.3% CAGR
200

100

0
2007 2008 2009 2010 2011 2012
Source: U.S. Print On Demand Market Forecast, 2007-2012. InfoTrends, 2008.
Color Print On Demand is Driving the Market

• Six Major Trends

1. Offset is moving to digital
2. Black & white is moving to color
3. Shorter run lengths
4. Mass customization/personalization
5. Utilization of the Web
6. Movement toward “super-efficiency”
 3. Shorter Run Lengths

• 46% of 356 print providers agreed with the following

statement:
– “Within two years, more than half of my jobs will require delivery
within 24 hours”
• 240 print buyers report:
– 50% of color jobs have a run length of under 1,000
– 70% of color jobs have a run length of under 5,000
 Anticipated Change in Run Lengths
For the following run lengths (sets of documents), do you expect to see an increase or decrease in the frequency of printing jobs?

2004 2008
100% 4%
6% 8% 6% 9% 7%
13% 17% 13%
Percentage of Respondents

23%
32%
80% 44% 43%
Decrease
46% 46% 43% 42%
49%
55%
48% 53%
60% Stay the same
52% 60%
57% Increase
45%
40%
41% 43%
33%
50% 50% 49%
20% 40% 48% 39%
45%
30% 27%
23% 20%
15% 14% 12%
0%
9

99
9

9
+

+
9

9
0

50
9
99

99

99

99
99
49

99

49
5

00
,9

,9
<2
<2

00
4,

9,

4,

9,
49

49
to

to
to

to

,0
,
to

to

to

o
50

50
0

0
to

to
Run Length Range t
25

50

25

50
00

00

0
0

00
00

00
00
0

,0
1,

5,

1,

5,
,

Source: InfoTrends 2004 and 2008 Print Service Provider Surveys

10

10
Color Print On Demand is Driving the Market

• Six Major Trends

1. Offset is moving to digital
2. Black & white is moving to color
3. Shorter run lengths
4. Mass customization/personalization
5. Utilization of the Web
6. Movement toward “super-efficiency”
 4. Mass Customization/Personalization

Variable Data Printing

Text
• Photo
A variable data job contains
unique printed data, such as name
& address, account information,
or custom text or images
• Almost 30% of documents printed
today contain variable Logo Signature
information
• 43% of document owners expect Customer
Data
the volume of variable print jobs
to increase in the coming year

Source: InfoTrends’ A Vertical-Market Approach to Document Services in the U.S., June 2006
TransPromo: A Different Type of Variable Data
 Retail Value of U.S. POD Variable Data Market

$20 20.8%
CAGR
$14.9
Billions US$ Value of Print

$15
$2.6

B&W
$10
Color
$5.8
$12.3
$5 $2.1

$3.7
$0
2007 2012
Year
Color Print On Demand is Driving the Market

• Six Major Trends

1. Offset is moving to digital
2. Black & white is moving to color
3. Shorter run lengths
4. Mass customization/personalization
5. Utilization of the Web
6. Movement toward “super-efficiency”
5. Utilization of the Web
 U.S. Primary Industries/Shipments E-enabled
Primary Print Industries Shipment e-Enabled
$160

$140 $133 CAGR

$126 $129
$121 $123 2.4%
$118
$120

$100
$Billions

$80

$60
31%
$40 $33
$28
$22
$17
$20 $13
$9

$0
2006 2007 2008 2009 2010 2011
Source: e-Enablement: The Future of Graphic Communications. InfoTrends, 2008.
Color Print On Demand is Driving the Market

• Six Major Trends

1. Offset is moving to digital
2. Black & white is moving to color
3. Shorter run lengths
4. Mass customization/personalization
5. Utilization of the Web
6. Movement toward “super-efficiency”
 6. Movement toward “Super-Efficiency”
• Super-efficiency enables the operation to be competitive and
includes all of these processes
• Tools and technology available:
– Web-to-print
– Print MIS
– Workflow management
• Streamlines the entire document lifecycle
• Super-efficient organizations use new technologies and open
standards to:
– Eliminate re-entry of job info
– Reduce error rates
– Reduce turnaround time
– Better utilize staff
– Increase profitability
 Three Market Perspectives

• Direct Mail - Tina Langton, Supervisor of Computer Processing, Red Rose Mailing Services,
Inc.

• Small Commercial Print - Bob Rymarchuk, Owner, UBR Services

• Data Service Bureau - Casey Williams, Sales Representative, DataImage

 Red Rose Mailing Services, Inc.

• We are a mail house, processing direct mail for our clients

• Located just north of Tampa International Airport
• Many of us have been in the direct mail business for 18+ years
• July 2009 will mark Red Rose’s 5th year in business
• We provide services for companies of all types and sizes
– Our clients include a Mom and Pop deli, printers, and large
retail chains.
 Services

• Inkjetting • Hand Fulfillment

• Tabbing • Data Processing
• Folding • CASS Certification
• Inserting • List Acquisition
• Black & White Lasering • Merge / Purge
• Color Lasering • Palletization
• Metering • Snap Aparts
• Labeling • Mail Merge
• Stamping • Extreme Personalization
• Extreme personalization of postcards and letters
• Regular variable data on letters
• Snap Aparts
• We have 8 Riso HC 5500s, 1 Océ, 2 Konica/Minolta bizhubs,
and 6 HPs
• Commonly used software:
– Alpha4 and Excel for data conversions
– PSL for Variable Data Printing
– Print Shop Mail for Variable Data Printing
– Direct Smile in conjunction with Print Shop Mail for extreme
personalization
– PostalSoft
– Accuzip
• Customers are migrating from black & white to color to
increase their response rate and promote their products
and services with a higher quality mail piece.
• Extreme personalization is still in its infancy, but moving
rapidly to the forefront as a new and unique product.
Having this capability has expanded our reach of potential
new customers.
Key Considerations in the Digital Color Investment

• Affordability/Cost Effectiveness
• Inkjet Technology/The Future
• New Opportunity for Red Rose and Our Customers
 The Future

• We are continually seeking ways to cut costs, and increase production

• We are expanding our sales efforts in a quest for new clients
• We are focused on customer retention and staying in close contact with current clients
UBR Services
• We are a print and copy shop in the small
Canadian town of Winfield, British
Columbia (population 10,000).
− We serve many small businesses in our
local area, but also handle larger print
jobs, such as manuals, books, large
format construction drawings, and
digital color for firms across the region
• We are a “mom and pop” operation,
owned by Ursula and Bob Rymarchuk
− Cost-conscious
− Focused on reducing labor requirements
by acquiring equipment that requires
less operator intervention
− Optimizing gross margins
 Customer Counter & Front Office Area

Riso RZ990 (meter - 1,669,649 Two yrs. old) HC5500 (657,304 Eight months)
 The Applications/The Opportunity

• NCR Forms
• Short-Run Letterhead and Envelopes
• Point-of-Purchase Materials
• Short Run Instruction Manuals
• Marketing Flyers
• Exact Quantity Required
• Affordability
 Digital Color Investment Considerations at UBR

• Inkjet was our answer

– Profitability
– More products and services to attract and retain customers
– Maintenance/repair and uptime
– Footprint
– Energy
– Ease of use
 DataImage: Company Background

• We were founded by Dave Speelman in 1987, who

had previously worked with financial printing houses.
His goal was to shrink the business model for lower
volume clients and perform exceptional customer
service with a long-term vision.
• Privately owned
• 4 operation centers in the U.S.
• We print and mail over 5 million statements a month
• Unprecedented customer service and statement
flexibility
 Customer Mix

• Healthcare
• Utility
• Collection
• Financial
• Commercial
• Associations
• Volume Targets: 10,000 to 250,000 per month
 Services

tandard Image Service

olor Image Service

ddress Services

ata Online (Electronic Bill Presentment

and Payment)
 Technology

• We use a proprietary document design system to

create the document
• Variable color printing is produced with a
Riso HC 5500
• Pitney Bowes inserters
 Digital Impact

• The biggest impact variable color printing has had on

our business is creating value for the client.
Transactional documents or financial documents are a
required part of our customers’ businesses. With
digital color, we:
− Increase value for these dollars spent in this competitive
environment
− Demonstrate how variable color is our competitive
advantage for our customers and our business
 Digital Impact

• Data Image has created a marketplace for actionable

documents… documents that work better and communicate
intentional messages to the individual
• We have eliminated preprinted color forms in our
environment and only print dynamic documents that
change based on the individual. Target marketing or target
messaging… one design does not fit all!
• Variable color printing enables us to start with a white
sheet of paper and print within one print stream multiple
designs, colors, graphics, logos, and messages to create the
document. The intended action is paying the bill.
 What is the Value to the Client?

• When we are closing an account, we stress

value rather than price. What are you getting
for your dollar? Is color really more
expensive?
• If an account can save 2 cents per piece using
another vendor, printing in the old
marketplace of pre-printed color and
variable black printing might be attractive.
But if they spend a little more on the front
end utilizing variable color printing, will that
translate to more dollars saved on the back
end?
 What is the Value to the Client?
• The answer is yes… we have multiple case studies
proving that variable color works and creates a better
return on investment. An increase in cash or an
increase in comprehension reduces phone calls to
customer service. It could be the addition of a targeted
marketing graphic that increases the value. If done
correctly, variable color will save the client money.
 Inkjet Technology & Its Future

• At DataImage, we are excited about our future

utilizing inkjet technology. We are firmly committed
and continue to build our business around this
technology.
• In the past 4 years, inkjet technology has become
cheaper and faster
• Quality and clarity has also increased dramatically
• We expect this trend to continue!
 Dealing with a Tough Economy

• As we service our existing client base and

approach prospects for new business, we know
that budgets are shrinking. However, this does
not mean that clients are seeking the cheapest
option—it means that you have to be in front of
them offering the most value. When dollars are
scarce, people become innovative in how they
approach their needs and seek solutions.
• We are trying to position ourselves as providing
a solution, casting the vision that a variable color
document is valuable. If we do this correctly, it
will increase our revenue despite the economic
downturn.
 Recommendation

• My parting recommendation is to lead and not

follow— “me too” businesses can only win with
price. Variable color will create value in your
business as it has done for us.
Color Print On Demand is Driving the Market

1. Offset is moving to digital

2. Black & white is moving to color
3. Shorter run lengths
4. Mass customization/personalization
5. Utilization of the Web
6. Movement toward “super-efficiency”