Does Your Survival Depend on Variable Data Printing?
Yes, says Dr. Harvey Robert Levenson, Ph.D. In an interview with Print Matters, Levenson discussed the importance of variable data printing (VDP). He is a professor and department head of Graphic Communication at California Polytechnic State University, San Luis Obispo, Calif.
1. What kinds of strategies should printing companies develop to succeed in the digital print market?
To begin with, let's define digital printing in the context of this interview. Digital printing in and of itself is really not that different from traditional printing. It simply means using technologies and applications that are digital as opposed to analog. Such technologies and applications can be found in prepress, press, and post-press technologies of the printing industry. The production of long run or short run printing, where the image is exactly the same from impression-to-impression or from sheet-to-sheet throughout the duration of the press run, can be accomplished in an analog or digital mode.
However, from my standpoint the really exciting application of digital printing is in the variable data printing (VDP) area where each impression within a press run can be personalized for the recipient of that printed impression. To me, this is where the high growth of the printing industry lies in the years ahead. And, quite frankly, I believe that the survival of the printing industry as a major provider of information services lies in the further development and application of VDP. Hence, from this point on in this interview, my reference to digital printing will be to VDP.
First and foremost, in developing strategies for digital printing, printing companies must begin thinking of themselves as marketing consultants to their customers. They must think about integrating telephone, email, web, and related communication technology with print because this is what it takes to market successfully in today's business environment. Increasingly, print by itself does not work. It takes a multiple media communication effort. Hence, the commercial printer today should ask, "Am I going to diversify into providing multiple communication services, or am I going to allow the provider of a typically non-print medium diversify into print?"
Part of the strategy to be successful is to demonstrate to prospects and customers the virtues of short run color and how they can benefit from digital printing. While this is likely to change in the future, today's digital presses are designed for short run color, and part of the strategy should be to show that inventory can be provided when needed, without the burden of warehousing large inventories.
I also believe that the printing industry must be more proactive with equipment vendors to provide incentives on digital equipment installations. From the standpoint of the digital press manufacturers, the revenue is in the consumables and service contracts, not in the sale of the presses. I sense that being locked into "click charges" also inhibits some printers from entering the digital market. Strategies should be developed to make the equipment acquisition more financially viable for the printer and the application of "click charges" negotiable.
2. What are some of the unique applications of digital printing? Which markets should companies target to successfully sell digital printing?
The common markets for digital printing are variable data printing, short run color and personalization. However, the progressive printer with a vision toward the future should not stop there. Almost every segment of the graphic communication industry will ultimately lend itself to digital printing. This includes commercial printing, magazine and periodical printing, financial and legal printing, greeting card printing, yearbook printing, packaging, and more. A printer employing some vision to her or his marketing and long- range strategy will quickly realize the opportunities that exist.
3. Why are some companies successful in selling digital print while others are not? What are they doing differently?
Marketing is fundamental. Most printers are not marketing specialists; they are manufacturing oriented. Hence, they do not understand strategies associated with helping clients retain existing customers, bring back former customers and acquiring new customers.
The traditional metaphor is, "The printer prints what the customer wants." However, in this new era of digital and personalized printing capabilities, sometime the customer does not know what he or she wants-or needs-to do business effectively. The printer is now in the unique position to provide customers with insights into marketing capabilities that exist today that did not previously exist. The more successful digital printers are already doing this.
Also, the more successful printers that have entered the "digital world" understand issues of workflow. The workflow in digital printing differs from a traditional printing workflow. It often includes operations such as internet submission, file transfer, document creation and management, variable data merging and filtering, document preflighting, proofing, video analysis, postal coding and addressing, postage imprinting, binding and finishing, and more.
Companies that are not enjoying the success of others are often trying to sell and produce digital printing with personnel and a company philosophy associated with traditional printing. Nearly all of the successful digital printers will tell you that hiring IT people to handle the front-end is essential because the traditional prepress capabilities do not include understanding digital workflows, file construction, data mining, and database management.
Additionally, those successful have established a planning cycle allowing six months to a year or more to develop clients. This is fundamentally atypical of the traditional commercial printing industry where the timeline is much shorter. Planning includes developing a fundamental understanding of the print buyer's business philosophy including mission, goals, and objectives, as well as those of the print buyers' customers. Questions that have to be asked and answered include: Who are they "talking" to? What do they want to say? How do they want to say it? How the project results will be tracked and measured? What is the current response to traditional printing? What the expected response will be to digital printing? How complete is the customer's database? If it is not complete, what additional information is needed and what will it take to get it? What will be considered a success?
Fundamentally, planning is vital for a printer to serve as a consultant to customers. The printers that have experienced success have become a communications service provider rather than just print providers.
4. What trends do you see in digital printing in the next five years?
Well, the anticipated trends have been well documented by the pundits in the field of digital printing. They include less litho printing and more digital printing, more short run color and less inventorying of printing, an increase in the number of printers acting as consultants and marketing service providers for their customers.
On the vendor side, I expect to see larger and faster digital presses. This will be necessary to further compete with the longer run offset lithographic printing.
Next week, Levenson will discuss ways to overcome challenges companies face while selling digital printing.
Click here to read Levenson's discussion on hiring young people.
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