Openfirst | Data-driven Communications

	WORKFLOW OPTIMIZATION

	DIRECT MAIL

	LOCALIZED MARKETING

	STATEMENT & BILL PROCESSING

Workflow Optimization Whitepaper

Executive Summary

Faced with increasing postage and material costs, complex creative demands and declining response rates, leading direct mailers are aggressively searching for efficiencies that stand to enhance the return-on-investment of their marketing initiatives. In a promotional environment defined by fragmented media consumption and heightened production requirements – especially in light of the “multichannel” phenomenon now requiring the coordination of on- and offline channels – how can marketers expand their direct mail ROI expectations while optimizing their marketing mix? And how can service providers best serve their clients in such a way that achieves marketers’ response objectives as well as their own profitability goals?

Traditionally, tradeoffs in direct mail marketing have required concessions on price – marketers typically bargained for better, faster execution at lower cost, while service providers fought for higher prices and a greater degree of predictability around volumes and formats. But today’s competitive direct mail environment has rendered such discussions moot; higher upfront costs and declining returns now require that marketers and production providers collaborate to generate efficiencies that may be realized at all stages in the direct mail process.

Though enhanced technology is often cited as the sole cure for what ills both parties, a more achievable and impactful efficiency solution may be found through a coordinated approach that leans upon both technology and internal process improvements to provide for reduced cycle times, a lower cost burden and generally smoother production interactions. That approach centers on enhancements to the direct mail workflow the process by which projects are conceptualized, supplied, managed and executed through the production cycle. Properly executed, workflow optimization boils down to the efficient blending of both technology and process design – allowing for the appropriate, logical and timely flow of materials and data inputs. Effective workflows offer:

Improved overall efficiency at both the functional and macro process levels, providing for reduced cycle times, inventory costs, error rates and rework requirements

Continuous process control through the establishment of standardized checkpoints and accountability measures

External flexibility, allowing for the unique ability to tailor projects late in the planning cycle – or even, in some cases, during the production process – while maintaining data and campaign integrity

A profit-centric view into marketing execution. Since workflows are best designed to support the business needs of the marketer (as well as the production vendor), continuous process improvements may be enacted based on core profit concerns, rather than one-off project requirements.

Case Studies – Direct Mail

LARGE FINANCIAL ORGANIZATION

Challenge

This large financial organization was mailing in excess of 50,000,000 letters a year. Because of the competitive nature of its business, and the importance of testing, it was mailing a significant number of test panels. These and their endorsed mailings were of smaller quantities, usually less than 250,000 pieces each. They were using normal mail presentation software with local postal entry for their mailings. Because of the size of these smaller mailings, they were too small to justify the cost of destination delivery discounts that are available when mail is delivered to BMC and SCF destinations across the country.

Openfirst Solution

An analysis of the client’s mailing situation determined that significant savings could be obtained through our “PowerMail” service that combines multiple mail panels and mailings into a larger, single mail stream. This provides the mailer with greater presort savings at the “Five Digit” level plus the ability to have mail delivered to BMC and SCF destinations across the country at additional savings.

Impact

A savings of over $1,000,000 in the first year alone. These savings have grown each year since.

MEDIUM SIZED NON-PROFIT ORGANIZATION

Challenge

This mid-sized non-profit organization depends heavily on its mailing for its annual income. It squeezes every penny out of its mailing program through careful purchasing of its printing, envelopes and letter shop services. But it failed to recognize the additional savings available in what it was spending on postage.

Openfirst Solution

Openfirst analyzed the organization’s postage budget of over $400,000. It was found that though the letter shop was properly presorting the mail, it was unable to offer the customer the greater savings that would result from destination delivery to postal locations across the country.

Openfirst found that through the use of its PowerMail service, the client could combine its mail with other mailers to benefit from having more mail qualify at the lower “Five Digit” rate plus be able to have its mail delivered to BMC's and SCF's across the country to gain “drop ship” or destination delivery discounts.

Impact

A savings of over $45,000 a year.

MAJOR MEMBERSHIP ORGANIZATION

Challenge

This major membership organization mails in excess of 60,000,000 letters a year. Because much of its mail is in extremely large single panels, it is able to take advantage of both Carrier Route sortation and destination delivery.

It appeared at first glance that there were no further postage savings available.

Openfirst Solution

Openfirst analyzed the mailings and found a significant amount of test panels being mailed each month. Because these were smaller, they did not qualify for either lower presort (Five Digit) discounts or destination delivery discounts where mail is delivered to the BMC's and many of the SCF's across the country.

Openfirst recommended splitting these test panels away from the larger mail and treating them independently. These panels were then combined with each other plus other small mailings in the shop through our PowerMail service.

Impact

Monthly savings of approximately $15,000. Though this is a small part of their postage budget, it still saves the customer almost $200,000 a year.

Case Study – Localized Marketing

Coming Soon...

Case Study - Statement & Bill Processing

Challenge

A major communications utility providing telephone, cable and high-speed Internet access to customers nationwide sought a way to break free from the rigid constraints imposed by its incumbent statement and bill processing vendor – constraints that made it impossible to achieve the following goals:

Find a more cost effective way to prepare statements
Make statements clearer, friendlier, easier for customers to read and understand

Openfirst Solution

Design a new statement format based on focus group priorities. Increase size of statement form. Eliminate unnecessary page breaks. Facilitate smoother messaging and achieve more efficient placement of dynamic content.
Incorporate an ad insert program that maximizes available weight/space and eliminates costly postage overages.

Impact

Page count was reduced by 847,747 pages a month – an overall reduction of 32% - for an annualized savings of
$508,343.

Marked reduction in billing related call volume and talk time. (Analysis still pending).

Additional revenue in excess of $250,000 has resulted from an ad inset program.

In the first 9 months of production Openfirst has generated expense savings or revenue of more than
$1,000,000 for this customer.