Transpromo: money in the bank
Transpromo implementation needn’t mean a revolutionary new start.
Ronald van Hees, MD, Pitney Bowes, urges banks to look behind the hype
to understand the bottom-line benefits of a step-by-step transpromo approach.
 When technology suppliers get
swept along by the latest
industry buzz-phrase there is a
real danger that the most important party
– the customer – gets cut off by the tide.
Quoted with a knowing glint at trade events
and within industry publications, transpromo
is a case in point. This latest phrase has
already become almost passé within vendor
circles – indeed, there is already talk of
transpromo 3.0. And yet many potential
purchasers remain unsure of the business
benefits behind the clever title, let alone the
steps required to transform their existing
print and production operation.
The concept itself is a relatively simple
one, taking standard transactional documents
- the trans in transpromo - and adding
promotional marketing messages - the
promo. What is not clear to the purchaser,
and our conversations with the banking
community confirm this point, is exactly how
involved the transition to transpromo might
be. Many potential customers are being
put-off by the thought of an all or nothing
scenario; that their entire operation must
undergo a dramatic facelift if the full benefits
of transpromo are to be realised. The good
news is that this is not the case.
‘Try, test and measure’ is a classic
marketing mantra and today’s technology
enables banks of every size to trial
transpromo on a small scale, perhaps
opposite a new product or service, and to
then extend as appropriate.
Making the case
Despite the hype, transpromo remains an
untapped opportunity. The major obstacle
preventing widespread take-up of transpromo
is no longer anything to do with technological
capabilities. Rather, the stumbling block is
attitudinal, an upsetting of the status quo that
demands true integration from departments
that have become used to operating in blissful
isolation. At one end sits IT and finance, at the
other, marketing, departments not necessarily
used to working in harmony. It is precisely
this integration challenge that makes the ‘try,
test and measure’ approach so valuable. What
better way of convincing peers of the success
of this new approach than by demonstrating
it and measuring it?
Too often, the true value of transpromo
is hidden behind talk of technology. But
compelling figures exist. A 2008 Pitney
Bowes study valued the available ‘white space’
on European transactional documents as
potential advertising space. The study found
that this currently redundant white space
equated to around €2.8 billion worth of
advertising opportunity. Money talks, and
it is precisely this kind of message that will
unite bank marketers with their finance and
IT teams. At a time when marketing and
communication budgets are being more
closely scrutinised than ever, what industry
can afford to overlook such an obvious, and
essentially free, window to the consumer?
Well read
The cyclical nature of transactional documents
provides the ideal ‘sticky’ vehicle for marketing
messages. Again, our own research reveals
that European consumers spend an average
of just over three-and-a-half minutes reading
their monthly printed bank statement,
compared to just under two minutes reading
a piece of direct mail that is targeted towards
them. Additionally, printed statements are
retained for longer than direct mail, meaning
that any marketing message added to a
statement has the dual advantage of gaining
more immediate attention and of registering
again when the statement is reviewed.
Traditionally, the statement production
cycle has been viewed as a necessary cost
burden but transpromo turns this outlook
on its head. Adding marketing messages to
transactional documents that are already
being despatched transforms the statement
into a communication with the potential to
generate significant revenue over the lifetime
of a satisfied customer.
Changing the focus
In the past, focus was on cost per mailpiece
– how can I get this essential customer
information out of the door at the best
possible price? Today, managers are seeking
to measure cost per response as well as
customer loyalty and retention.
Transpromo can deliver marketing
messages that are just as personal and
relevant as the transaction information
enclosed. And, as relevancy increases, profits
can, too.
For banks, the necessary customer data
to achieve this detailed personalisation
already exists. But, for many, this information is stored in disparate systems using
inconsistent formats, and that makes it
unwieldy to get the required answers.
Again, these problems have effectively
been solved by the latest data solutions
which make it easier to create a single,
comprehensive view of every customer. In
this way, banks can turn this jumble of data
into actionable information.
Indeed, today’s software tools are bringing
truly exciting capabilities to the humble
statement. It is perhaps the potential that
now exists that leads suppliers to run too
fast; to wow customers with the possibilities
when they are simply looking to get into
first gear. But equally, if marketers are to
make a compelling case for transpromo, a
vision of the potential roadmap is essential.
There is particular excitement around
the subject of location intelligence. Location
is one of the most crucial factors affecting
market segmentation and decision-making.
The latest software can provide banks
with a demographic profile of any location,
meaning the bank can then tailor decisions
accordingly. For transpromo, the potential
is clear. Statements can carry marketing
messages that are finely tuned to appeal
to a particular group within a particular
location. For example, a bank might identify
a segment of its customers living in rented
accommodation and target them with
messaging around first-time mortgages.
Now, the potential of the monthly
statement as a core revenue generator truly
comes to life.
The time is now
While the potential of transpromo is exciting,
banks are understandably wary of what such
a solution might cost. However, any bank
producing regular statement runs is already
in position to take the next step. The best
solution providers will work with your existing
systems to slowly build transpromo capabilities
layer by layer.
In a challenging economy, transpromo is a
solution that can save money. Consider mail
costs. More than 75% of the cost of mail is
attributed to postage. By aggregating direct
marketing messages with documents that are
already being printed and posted banks can
significantly reduce their mail expenditure.
The same is true of print spend. Combining
marketing messages with transactional
output can reduce the overall volume of
printed output whilst delivering campaigns
on a document that will be opened, read
and retained. Today’s marketing climate is also
placing increased pressure on businesses to
measure against every marketing campaign.
Transpromo can provide banks with a tangible
RO I linked directly to specific business goals
and objectives.
Additionally, analysts acknowledge that
customer loyalty is directly linked to good
communication and sound customer
service. Used intelligently, the transpromo
document can strike a winning balance
between selling and informing.
Money in the bank
Transpromo is not a new phenomenon
but it is a technique that continues to push
the boundaries. The pace of development,
driven by dynamic hardware and software
advances, dictates that many potential
customers are struggling with the ‘how?’
and ‘when?’ of implementation.
For many banks, much of the technology
will already be in place to make the
transition to transpromo quick and effective.
Testing the technique amongst a small group
of customers will provide the necessary RO I
evidence to convince stakeholder peers to
scale the solution upwards.
Behind the hype, transpromo can be
explained in simple terms that should be
genuinely compelling to any business: do
more for less; make your documents work
harder; reduce spend and increase loyalty;
turn cost into profit.
For the technique to really take hold, we
must think of it less as ‘transpromo’ and
more as money in the bank.
When it comes to transpromo insights
and execution, Pitney Bowes is the one
organisation that offers the end-to-end
experience and expertise needed to
leverage all four forms of communication
intelligence: location intelligence, customer
intelligence, production intelligence and
channel intelligence.
Pitney Bowes is also at the forefront of
print and mail integration, bringing these
production functions together to introduce
dynamic cost and process efficiencies. |
