Apr 18, 2006
The Future of Customer Messaging
A new transaction-based messaging technology features full
color, variable data and images, and a customized envelope
By George Linkletter
One of the conundrums of transaction-based customer messaging centers on the effective use of variable data. On the one hand the control document of an account statement is composed almost exclusively of transaction-based variable data. After all, that’s what an account statement is supposed to contain: specific details relating to the account. It is pure 1:1 messaging.
But also enclosed in the outbound envelope -- and more recently on the statement itself -- are marketing messages far less specific to the recipient.
Traditionally, these marketing messages took the form of pre-printed inserts that were enclosed with the statement at the time of mailpiece assembly. A few innovators are printing these marketing messages inline on the control document just prior to mailpiece assembly. But these are still largely generic messages and hardly fall into a 1:1 messaging category.
The challenge for managers who want to utilize the full carrying capacity of the transaction-based envelope is obvious: How do you select and insert true 1:1 marketing messages without slowing the entire print/mail finishing process to a crawl?
A solution may be on the horizon and it is coming from a new company called MegaSpirea International.
MSI has developed an entirely new approach to print/mail finishing. The innovative process is being offered via a new hardware device called the Mailliner 100. And the approach is significant for two reasons. First, because it relies on a high-speed digital printer that prints the control document -- and all related marketing messages -- inline, eliminating the need to pre-print marketing inserts and enclose those inserts in the transaction-based envelope.
And second, because the Mailliner 100 eliminates the need for a separate outbound envelope. Instead, the Mailliner 100 creates an outbound envelope inline during the mailpiece assembly process from the same paper used for the control documents.
The advantages of the new approach, demonstrated earlier this month at the International Printing Exposition (IPEX) in Birmingham, UK, are obvious and compelling.
Full color -- The new mail finishing device was demonstrated at IPEX with a Kodak Versamark V-series printing system. So every page in the mailpiece, including the outbound envelope, featured full color images, highlight color, or color shading intended to boost interest and readability.
Variable Data and Images -- Since the various marketing messages are printed at the same time as the control document, the process offers an unique opportunity to match those messages with the recipient via characteristics such as precise spending habits or the demographic profile.
Compressed Time to Market -- There is no need to order, print, ship, warehouse, select and insert pre-printed marketing messages. A unlimited array of messages can be created and stored electronically, and then instantly accessed as the mailpiece is printed and assembled.
Assured Mailpiece Integrity -- The device employs a robust 2-D barcode to assure that each page of each collation is printed and assembled correctly. And since the envelope is ‘created’ immediately after the contents of each mailpiece is completed, there is virtually no chance of misassembling a mailpiece.
Ultra-Fast Assembly -- Since only a single grade of paper is utilized, it is much easier to set up and start processing, there are fewer tweaks to achieve maximum processing speed, and fewer stoppages as well.
An MSI spokesman says customers can expect the Mailliner 100 to achieve speeds of 21,000 completed mailpieces per hour for a single-page application, 17,000 for a 2-page collation, and 14,000 for a 3-page collation. Those numbers compare very favorably with current industry standards.
Lower Costs -- A key savings comes from the elimination of the cost for the outgoing envelope. Other savings stem from higher productivity and lower warehousing costs.
High-Impact Appearance -- The full color images that I saw on the sample outbound envelopes were dramatic. They will help any mailpiece attract the attention of the recipient upon arrival.
The closed-face envelope is a plus as well. A closed-face envelope fully protects the contents and projects an aura of privacy or confidentiality. With no window, there is less chance of tampering or contamination from contact with other mail in the mailstream.
Of course, there is a drawback or two. For example, if you insist on using coated stock for your marketing messages, you’ll be disappointed. There’s no doubt that color and graphics pop better on coated stock. But only one grade of paper can be accommodated right now, and its uncoated. Still, the print quality I witnessed on the uncoated stock was first-class.
And if you are truly wedded to the idea of using coated stock for your marketing messages, don’t fret. The device is still being prototyped, and I’ve been assured that if a customer wants to continue using pre-printed inserts, MSI will outfit a Mailliner 100 with enclosure feeders to allow it. “The device is both modular and flexible,” the spokesman told me. “Since you can never really anticipate what every customer will want,” he said, “you have to be ready to provide almost any alternative imaginable.”
The first Mailliner 100 is already up and running in Europe, and a second device was sold at IPEX. MSI representatives are attending both MailCom and On Demand, but the device won’t be showcased at either show due to competitive concerns. MSI is creating a demonstration center in the suburban New York City area, were potential customers can see the device in action. The demonstration site is expected to open in September.
According to MSI, the early adopters are most interested in the new technology for simple, high-volume applications like credit card statements, EOBs, trade confirmations, and imaged DDA statements.
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Comments? Contact georgeol@ntplx.net .