Last month, I outlined two of the capabilities needed to make transpromo work: a world-class mailroom capability (insourced or outsourced). To this must be added a great data capability, again either contracted in, or developed in-house.
The next non-negotiable is the ability to execute creatively. This is important, as companies cannot simply send the same old statement out with perhaps a single spot colour or a touch of full colour. To succeed with transpromo, a company needs to acquire world-class design capabilities, and again it's a matter of insource or outsource.
When it comes to transpromo, it's important to note that companies are no longer in their comfort zone: rather, they are now a consultant and communicator on behalf of their customer, and in turn to their customers.
Communication is to an extent what lies at the heart of transpromo: it's about the targeted transmission of content to a clearly identified recipient, with well thought out and designed content likely to elicit a desired response. And, because the communication channel is a trusted, even expected one, the chances of clear, uncluttered, static-free reception is enhanced, along with the heightened chances of a successful response.
That is very far from the mandate of a typical mailroom, which takes a predesigned template from a customer and ensures it is delivered in the most efficient and cost-effective manner to perhaps millions of customers.
The decision as to design skills is an important one, and if it's not a core competency, which it likely is not, it is advisable to partner with the appropriate person or company.
As an example, transpromo will always require a significant volume of creative design, but not enough to warrant investing in my own capability. So I would be likely to partner with a highly competent service provider, offer them office space, and through a non-exclusive agreement, gain access to skills while they can use my premises and flow of jobs as a business foundation. I have the skills and resources without having to retain them on the payroll. And clients will enjoy rapid turnaround of their jobs. It's a win-win scenario.
Do it in phases
Doing transpromo in a phased manner helps reduce both cost and limit exposure to risk.
Konni Hoferichter is MD of LaserCom, a division of Bytes Technology Group.
As the saying goes, it's best not to try and eat the elephant all at once. Doing transpromo in a phased manner helps reduce both cost and limit exposure to risk. I recommend the following approach:
Phase one: Extract a file containing contact history, or use a specific variable in an existing customer billing file, and choose a sample of specific customers to receive a message. A good idea is to reinforce a direct marketing offer that has already been sent, or include the offer on the statement.
Phase two: Now it is time to apply data mining to gain insights into customer behaviour so as to identify propensity to respond to special offers. It is advisable to apply basic segmentation with flags, or more sophisticated segmentation through data mining. Typically, segmentation should be driven through customer value, existing and potential, as the type of communication needs to be driven by the value, today and tomorrow, of the customer.
Phase three: This is a highly sophisticated phase, where the transactional data in the statement/invoice triggers the market message. Business rules can be used, or more sophisticated triggers and events-based programs applied. This introduces a level of automation that can save money and produce more accurate results.
Measurement
It's been said millions of times, but it's still true: you can't manage what you can't measure, and so it is with transpromo. As a starting point, the transpromo team needs to know what it is going to measure, and the business is unlikely to sign off if control measures aren't put in place right up-front. Without this, of course, there can be no way of determining whether the transpromo exercise has been a success or not.
While transpromo is not hugely expensive, there are costs attached, and the transpromo team is more likely to overcome internal inertia and resistance if it can state its business case, with expected outcomes, at the beginning.
The controlled trial phase should only be entered into if a number of predetermined indicators can be monitored. Set in place indicators such as cost of response or cost of conversion or reduced churn rate.
Finally, consider integrating transpromo with other channels, as it is ideal for this. Transpromo can happily support other marketing channels and campaigns, reinforcing existing messaging. When combined with other media and campaigns, transpromo can enjoy even higher response rates. There are many case studies to corroborate this.
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