LaserCom, 5th Dimension partner to bring transpromo to SA
Bytes Technology Group company LaserCom, South Africa's leading mail bureau, and 5th Dimension, the country's leading provider of data analytics services, have joined forces to bring transpromo to the South African market.
Transpromo stands for transactional promotional, which is the practice of including marketing or promotional items in existing customer communication items, such as monthly statements and invoices.
Transpromo has proven to be one of the most popular new forms of marketing and media in the US, as it generates record response levels at a relatively low incremental cost.
"The success of transpromo depends on two factors," says Konni Hoferichter, MD of LaserCom. "On the one hand you need a high-speed, colour-capable printing infrastructure, which we have. By way of example, we print 30 million pages a month on behalf of our clients.
“On the other you need the ability to take large amounts of customer data and segment that according to observed and anticipated behaviour and preferences. Once you can segment your customer base appropriately, you can devise and design highly customised, even personalised, one-to-one communications with existing customers based on their existing and potential value and observed propensity to respond."
Current direct marketing techniques produce returns averaging between .2 and 1%. Transpromo has been known to produce yields as high as 2.64%, which, considering the low additional cost, makes it an attractive medium.
"We have years' experience creating and implementing successful direct marketing campaigns," says Keith Wiser, MD of 5th Dimension. "Our motto is customer value management and our track record is that we always exceed by income any investment a client makes in our work.
"Working with our international partners such as Cartesian in India, we mine vast amounts of customer data to segment customers by their historic, current and potential value. We then find commonalities and indicators, which show a customer is likely to respond to a particular offer, or has reached a particular point in his life where he might respond to cross- or up-sell suggestions. Based on the segmented groups, highly focused and targeted communications can be drawn up, and then the appropriate promotion included in the monthly customer communication."
5th Dimension's clients include Avis, Clientele Life, Estee Lauder, Mr Delivery, MGM, Nestle, Sun International and Unilever.
LaserCom and 5th Dimension have identified their first mutual clients and are working to get their first projects into production.