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Transactional Direct Marketing: A new engine for growth

Yes, you read that right. Classic transactional print may be declining, but transactional Direct Marketing (DM) is on the rise. In fact, it’s expected to grow larger than all offset litho printing processes combined by 2024.

Now is the time to leverage the power of inkjet and digital print to optimize first class transactional communications and open the door to greater opportunity.

Print is trending up

Digital migration within transactional communication has reached maturity, and the pandemic has accelerated factors that were already in place.

Transactional DM to grow:

3.7% by 2024 in US¹
6.8% in Western Europe¹
Over 42B combined pages¹

Consumer communication expectations rising

1/3 consumers prefer paper bills and to pay digitally²
Around 25% have switched back to paper²
Over 25% of respondents had reduced digital access because of the recession²

Digital overload and cybercrime make digital channels less desirable

Digital fog is real. Transactional direct marketing lets you deliver consistent and relevant content while providing a reprieve from screens and digital devices. And as cyber hacks increase exponentially, security and data privacy concerns take center stage. There is an inherent trust factor in communications that are printed and sent through First-Class Mail.

Almost 3 in 4 employees say that working from home has increased their feeling of "digital overload"³

With online crime up 90% and data breaches up 223% during the pandemic⁴, 1/4 of respondents switched back to paper bills due to personal data privacy concerns⁵

Print still outperforms digital

Consumers choose to spend more time reviewing paper-based communications than electronic versions. More than reminders to pay, transactional direct marketing is a tangible artifact consumers can interact with on their own schedule. And with its near 100% open and read-through rate (more than double the rate of email) it’s the most powerful way to ensure key messages and offers are not overlooked or dismissed.

50% of consumers prefer getting printed transactional communications⁶

Direct mail requires 21% less cognitive effort to process than email. Transactional mail has an open and read-through rate of at least 95%⁶

Direct mail recipients purchase 28% more items and spend 28% more money than people who don’t get that same piece of direct mail⁷

Multichannel is key

Digital is a powerful tool. But most consumers want channel choice. Brands that push digital-only options may see loyalty lapse. Communications that include both digital and transactional direct marketing will be more important than ever. And while many have added color, charts, images or migrated to white paper factories, today’s customers expect engaging experiences that are digitally integrated. Adding embellishments and specialty ink enhancements, as well as AI, QR codes, AR and VR, triggered personalization and targeted content can increase customer satisfaction and retention.

On average and across industries, people spend up to 5% more time with paper bills and statements vs. electronic⁸

50% of respondents wish providers would stop asking them to “go paperless” because they liked receiving paper mail (up 10% from 2018)⁸

Businesses need more, too

Print providers that leverage redesigns of their transactional communications and integration of direct marketing content can add value by helping businesses reinforce and strengthen their brands.

39% expect help with data analytics and customer segmentation⁹

31% of businesses expect strategic help with evolving communications⁹

14% expect you to become a full-communications service provider⁹

We help print and digital work brilliantly

Xerox is taking automation to the next level to make it easy for print providers to push Beyond CMYK, create custom content, simplify operations and streamline workflow.

Our approach isn’t just “smart”, it’s adaptable to how people work, think and communicate — with an emphasis on both efficiency and security.

Automate your physical and digital workflow

Optimize and automate physical and digital processes to be more efficient and productive.

Expand beyond commodity printing

Take advantage of new growth opportunities and position yourself for the long term.

Invest with confidence

Count on future-proof technology and support that lets you adapt to industry change while covering you every step of the way.

Ready to tap into the potential?

We’re here to help you with everything from design to ROI — to keeping you positioned for growth and ahead of a fast-moving world. So, let’s get started.

Sources:

1. US and WE Digital Production Printing Application Forecast_ 2019-2024

2. 2020-NA TCC Analysis Primary Research, page 21

3. Paper & Packaging, The Workplace Productivity Report 2020

4. ANALYSIS Road Map 2021: Customer Communications

5. Keypoint Intelligence, 2020

6. Keypoint Intelligence - InfoTrends 2018

7. 24 Direct Mail Statistics To Write Home About - 2021 Edition (smallbizgenius.net)

8. Keypoint Intelligence: PRIMARY RESEARCH ANNUAL STATE OF TRANSACTIONAL COMMUNICATIONS, 2020

9. Xerox

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