In 2001, InfoTrends, a market research firm specializing in print, imaging and digital technologies, conducted a landmark study focusing on the costs of producing printed documents. In its published findings, called The True Cost of Business Communications, InfoTrends revealed that, for every $1 spent on printing, the average company spent an additional $6 on related costs, such as writing, editing, design, ordering, warehousing, distribution and obsolescence. (Yes, obsolescence! According to InfoTrends, a shocking 15% to 25% of all printed materials are thrown out or continue to be used even though they're inaccurate or out of date.)
Follow-up research conducted in 2006, 2009 and, most recently, in 2012, showed that the ratio between print costs and related, non-print costs has come down. This is largely due to technological advances in, and growing usage of:
On-demand digital printing, which makes short print runs more economical, in turn reducing inventory storage and waste;
Online design and editorial tools, which reduce pre-print preparation expenses and
Web-based ordering systems ideally integrated with back-end fulfillment, tracking and inventory management capabilities.
The 2012 InfoTrends study goes on to recommend that businesses:
Analyze internal work processes behind their most common documents;
Identify internal and external expenses to create, produce, and distribute these documents and
Determine how much they could save by outsourcing to the right service provider one that can not only save them money on printing, but also on non-print related activities by offering one point of contact, advanced tools, quicker turnaround times and consistent product quality and service.
That's good advice. But I would go further and encourage businesses to seek ways to boost communications ROI not only by making them more efficient, but also more effective. A consultative process we call Communication Optimization provides a good template.
As we practice it, Communications Optimization begins with an assessment of existing materials to determine how well they are meeting business objectives and sales goals and reaching target audiences. This assessment looks at basic questions such as, is this document necessary/relevant? Is it delivered in the most effective/preferred medium? Can we get the same or better results for less money? What's our competition doing and how effective is that? What are the costs and benefits of the materials we're using now?
From this analysis, a communication strategy is created to ensure that the company produces only the materials it truly needs, in the right quantities, using the most cost-effective production and delivery methods relative to the value of the transaction. So, for a high-value transaction, they might use a relatively expensive four-color brochure, coupled with a highly personalized cover letter and additional materials with customized graphics and text. For lower value transactions, they might use a less expensive package or perhaps a series of post cards. In some cases, it may be possible to eliminate a print document and deliver it electronically, or use electronic files only when print inventory is out of stock.
As a result, some materials might be added, combined, or eliminated. Copy might require revision. Or the company might identify a need for multiple versions of a particular document.
Once a strategy and cost/benefit rationale have been developed, the next step is to automate as many functions as possible, using the web-based systems and tools mentioned earlier. At its best, this optimization process should be ongoing. As results come in, they are analyzed and used to adjust the strategy and further refine communications to target audiences. When used in this manner, we've seen reductions in total marketing costs of 30% or more, while boosting response rates through greater relevance to audience needs and interests.
In a business environment in which marketers are continually being challenged to do more with less, few companies can afford to pass up the opportunity to achieve savings of this degree. The sooner businesses identify what their communications are really costing them, the sooner they can design them to cost less and do more.
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In 2001, InfoTrends, a market research firm specializing in print, imaging and digital technologies, conducted a landmark study focusing on the costs of producing printed documents. In its published findings, called The True Cost of Business Communications, InfoTrends revealed that, for every $1 spent on printing, the average company spent an additional $6 on related costs, such as writing, editing, design, ordering, warehousing, distribution and obsolescence. (Yes, obsolescence! According to InfoTrends, a shocking 15% to 25% of all printed materials are thrown out or continue to be used even though they're inaccurate or out of date.)
