Transpromo – The New Route to Revenue
For many years, companies have included promotional inserts into bills, statements and financial mailings, but the effectiveness of those inserts diminishes every year as customers often bin them immediately and only read and keep the document with their information on it.
However, if you can replace that insert with a targeted colour message on the prime document, you can be sure that the consumer will look at that message for between 1-3 minutes. Due to the increased attention to your message, response rates can increase by anything up to 800%. This is why `true transpromo` mailings are so exciting to customers.
A statement is a statement, right?
WRONG. Using a combination of bold design, colour print and variable data, you can turn your statement (or any transactional document) into valuable marketing tools that allow you to both retain and inform customers. By using, or allowing others to use, the white space on your transactional documents it is now possible to generate valuable extra revenue. This action will bring excellent results with customer acceptance.
Already 20% of the UK’s top 100 loyalty schemes are now printing transpromo adverts in the white space of their statement mailings, a report has found.
The recent study from GI Solutions Group’s direct mail division, GI Direct, found that the music and entertainment, mobile phone and electronics industries had employed the strongest transpromo initiatives. The least advanced schemes were found in the credit card issuers and travel agency sectors. Patrick Headley, sales and marketing director at GI Direct, said: "As pressure is mounting on marketers to achieve improved return on marketing investment in 2009, harnessing transpromo for cross sales, or to subsidise scheme costs through third party advertising revenue, is turning into a commercial imperative."
The recession has created a timely opportunity for companies to capitalise on transpromotional advertising and design opportunities within billing and statement documents, DST Output has said.
In a recent survey commissioned by the company, nearly two-thirds of respondents said they reviewed their bills more closely to check their accuracy and to look to opportunities to cut them. The most reviewed bills were found to be those from credit card, energy and mobile phone companies. The survey also highlighted that more consumers were delaying payments until final demands, or are more readily switching suppliers. (A customer retention strategy beyond the traditional ‘enhancing of brand’ via mass market media, or product discounting is needed to resolve this growing concern).
DST Output chief executive Tim Delahay said: "More than half the respondents questioned stated that they are looking to change service suppliers – now is the time that businesses must use every communications channel open to them effectively to keep customers loyal. "Work with our clients has shown that businesses who invest in clever design and targeted messaging on bills and statements can reduce debtor days and improve relationships with customers."