In the transactional print world, there is a change happening, but nobody is talking about it. Or wants to talk about it. Printed and mailed bills and statements will be the Yellow Pages of the next decade.
It’s a bold, but true, statement that has traditional printers uneasy about what the future looks like, even though data points to it already happening.
What’s also true? There is a digital experience transformation happening in parallel that you can capitalize on beyond or with the print experience. So, let’s unwrap it and understand how Treeline Research can help with your understanding of the current market, where it’s headed and how to navigate the transformation into new opportunities.
Disruptive Innovation Is Good
Yes, the market is changing, and we know, the human reaction being what it is, any change can be scary. But it doesn’t have to be.
Though we’re all aware of the shift, that print is declining, there is still a place for it. Knowing this, have you taken the time to uncover what’s necessary in your business to capitalize on it — people, products and processes — to succeed in your next chapter? The good news is, there are a lot of opportunities awaiting you in the digital customer experience, but pretending it isn’t happening or being afraid to talk about it isn’t going to convert inevitable change into success.
The volume of customer communications is increasing with new digital capabilities, and when they leave one channel like printed paper, they transition to another channel, they don’t just disappear. The key to success is knowing where to look.
The Digital Experience
When one door closes….
We know that there will always be a place for print, but when the market is increasingly digital, the best path forward is providing value by understanding your customer’s preferences and derive an experience vs. a one and done transactional communication.
As a Print Service Provider (PSP), can you see and prepare for this future? Turns out you can by starting with the data and embracing it.
Regardless of the medium, everybody needs information. Your financial and healthcare information, for example, doesn’t just go away because you clicked the ‘do not want printed statements’ box. You need your data to make decisions and often create a plan for budgets, follow-ups and top-ups. Those customer preferences are more than a simple email but rather part of an overall customer experience.
In the “Above the Treeline” Vlog Series, the latest installment is with Didier Rouillard, Co-Founder of DNOW! where we discuss why PSPs are in a great position to capitalize on the digital experience and shift in communications.
“If the Print Service Provider owners believe they are part of a process where they are helping the enterprise to assemble content, personalize communications and distribute in a secure manner regardless of the channel, then we have a lot of opportunity. However, if the owners are so deep into printing that they will never let go of physical manufacturing process, the sights sounds and smells of printing, then it will be difficult.” — Didier Rouillard, Co-Found DNOW!
Simply put, innovation and change go hand in hand and if done right, the opportunities for printers that come with these new challenges can be a game changer for your print business. But if you choose to only focus on traditional processes, there will be no room to capitalize on the transitional shift to digital.
All of this leaves print providers at a crossroads: how do they create a strategy around the reality that 90% of communications are digital but there is still a print element? How do printers balance the two, recognizing that the need and volume for direct mail and transactional print may be steadily decreasing, but understanding that people still need relevant communications?
A critical step is understanding where businesses are investing and expanding digital capabilities, and partnering with thought leaders who understand how to help get you there (see Figure 2).
Research Findings
Digital adoption rates and volumes are poised to become some of the most important metrics in customer communications. Companies are increasingly focused on efficiency gains, cost reductions and enhancing customer experience — goals that are often intertwined with digital transformation efforts.
There are three essential metrics that we believe will be closely monitored as businesses transition from paper to digital:
- Number of customers adopting digital as their preferred method of communication.
- Number of companies prioritizing digital communications.
- Overall volume of communications by delivery method.
While printed mail will continue to be available for certain consumers and regulatory reasons, the race to achieve digital adoption rates exceeding 90% will define the customer communications landscape through the end of this decade. For companies, digital is not just an alternative; it is the future of communications, with printed mail gradually fading into the background as it has in other parts of the world.
We have found that nearly every enterprise wants to significantly increase their digital adoption, but they are stuck between legacy systems and regulations in their quest to improve digital adoption. Their print needs are also outsourced to 3rd party service providers (PSP) who are best equipped to help with the transition to digital, but they are also challenged with commitments to equipment leases, revenue models and other overhead related to print. It’s a challenging situation that will start to unravel in the next 3 to 5 years.
Most businesses have a desire to remove paper communications and significantly increase their digital adoption within the next 3 to 5 years.
- Business overestimate the necessity of printed mailed communications in delivering customer experience. Most customers say they will not leave their bank, insurance company, etc. if they are forced to transition to digital communications.
- Businesses and their customers view mailed paper as redundant with digital alternatives.
- Digital methods of delivery are the most trusted form of communication delivery.
“Digital experiences are about making the documents that are valuable to the end-user. They work, navigate, look and feel the same as all the other stuff end-users are already doing on their mobile device or a on website, but this experience is delivered as a document that satisfies all the requirements of a “statement of record” with trusted relationship that can be personalized, even printed if that is what they desire.” — Alan Burger, Co-Founder & CEO NA InfoSlips
Surviving and Thriving: Recommendations in Navigating the Shift
There is definitely a place for printers in a digital world by becoming a strategic partner who understands the customer and creates an experience based on their preferences. Tips for success:
Enhance Digital Engagement: Businesses should invest in improving digital communication methods, particularly mobile and email, to ensure higher engagement and satisfaction among customers. User-friendly platforms and enhanced security features should be prioritized to encourage customers to switch from paper to digital communications.
Focus on Security and Privacy: Given that security and privacy are top concerns for customers, especially older generations and specific ethnic groups, service providers should emphasize these aspects in their digital communication strategies. Clear and transparent communication about data security measures can help build trust and encourage the transition to digital.
Utilize AI for Enhanced Customer Experience: As AI is expected to significantly impact customer communications, businesses should integrate AI technologies to improve customer experiences, identify problems faster and manage regulatory and compliance risks. AI-driven personalized experiences can also help in making digital interactions more engaging.
Monitor and Adjust Based on Customer Feedback: Regularly track and analyze customer satisfaction and engagement rates with digital communications. Use this feedback to continually refine and improve digital strategies, ensuring they meet the evolving preferences and needs of customers.
Promote Digital Wallets and New Communication Forms: Encourage the adoption of innovative digital communication methods, such as digital wallets and cloud delivery, which have strong support from younger generations. These new forms can further enhance the convenience and accessibility of digital interactions.
Andy Young, founder of Treeline Research, has dedicated his career to understanding how people communicate, and how to monetize those inevitable shifts in communication. His professional path has wound through all aspects of the communications spectrum. He grew up in print, working for businesses big and small, market leaders and entrepreneurs, frequently finding himself as a thought leader at the forefront of a market in transition, which starts with disruptive innovation to be successful. Treeline Research is a specialized market research firm focused on the transformation of paper customer communications into digital experiences within banking, general insurance, financial services and healthcare insurance sectors. Visit www.treelinepress.com.
