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When supermarket giant Sainsbury’s launched a direct mail campaign in 2005 using new technology that married computer software with digital printing presses, it had high hopes.

Data from the retailer’s Nectar cardholders was used to send out a personalised card with each recipient’s name emblazoned on a birthday cake. Around 400,000 cards were sent out with coupons attached to them, which were also targeted to match previous purchasing patterns. Based on the experience of previous campaigns, return on investment (ROI) increased by 25.5% and incremental revenue leapt by 110 % with gift redemption up by 39%.

Sainsbury’s wasn’t the first to use the technology, but the scale and success of the award-winning campaign opened the eyes to marketers and big business alike. So much so that today it seems as if every other mailer that drops through the letterbox bears some level of personalisation.

With ROI for personalised marketing campaigns up to 65% greater than mass mailing, it’s easy to see why so many have gone down this route. But what do you need to do to make your own campaign a success and are there any pitfalls to be wary of?

The good news for technophobes is that personalised campaigns are relatively easy to undertake and most digital printers of a certain size can offer some level of personalisation (see ‘How it works’ box).
However, the key to a successful campaign is the quality of data that you hold on your target audience,
according to James Gray, product manager at the NCS Group, which sells image personalisation software tool DirectSmile. “The data is the most difficult part,” says Gray. “Too many people make the assumption that getting very relevant customer records is readily available, but this is rarely the case.”

Good quality data
If you can get your data right at the outset, then this will save you money at the delivery end, according to Robin Skinner, group sales and marketing director at direct marketing specialist 4DM, who advises: “The data should be of the best possible quality to ensure the maximum postage discounts can be obtained. Your mailing house should be able to run supplied data against current enhancement databases to ensure that postcodes are in place and correct and give the opportunity to remove any records that are out of date.”

Once the data is clean, the cost of personalisation will vary depending on the type of kit used. Skinner says that it is key that when the job is quoted that the right equipment is used. “For example, if you propose producing 300,000 A4 simplex personalised letters, you would pay significantly less to produce those on a continuous laser than on a sheetfed laser.”

Also bear in mind that while personalised campaigns will typically require shorter run lengths and
therefore distribution costs will be lower, personalisation does command a premium.

“Due to the technologies involved and the complexities of working with variable data, the ‘per unit’ price of a personalised mailing is greater than a uniform en masse mailing,” explains Noel Warner, managing director of communications firm Inc Direct. “As personalisation offers so many possibilities, it is impossible to put a figure on the unit cost increase. However, our experience shows that through careful planning and consultation, companies can expect to see a significantly higher return on investment.”
If all of this sounds attractive, where do you find a printer who can do
this for you?

Ivor Dixon, managing director of pre-press workflow solutions provider Positive Focus, which sells the variable data and image personalisation tool XMPie, says that there are plenty of digital printers who claim to offer personalisation, but those that offer a comprehensive and reliable service are significantly fewer with around a dozen major players.

To help buyers and marketers, Dixon’s firm is currently building a database of providers that are prepared to state what they do and what software they use to do it, but until such a list is completed, it’s worthwhile shopping around and perhaps speaking to other buyers who have already used the technology for their recommendations.

No limits
Beyond that, there are few limitations to personalisation with the right time, ideas and products and the next trend appears to be into multi-channel campaigns. “Personalisation can be extended with personalised emails and websites – it does not have to stop with just print,” according to Gray.

Some companies have already enjoyed impressive response rates by mixing printed DM mailers with email, personalised URLs and SMS messaging and this will inevitably grow as the market becomes more mature. But Dixon cautions that while personalisation looks set for an exciting future, there are no guarantees. “It is a steep learning slope and probably a continual learning process, which requires regular maintenance and investment.”

The only thing that does look certain is that personalisation is set to see strong take-up over the coming months with a raft of companies lining up to dip their toe in the water. “The highest growth over the next five to 10 years will be personalised digital print,” says Simon Currid, production manager at direct marketing company Howard Hunt, “but the companies doing that will have to be on board with the right digital printer and more importantly with the right front end software.”

Once you’ve got these key elements in place it appears as if the possibilities are endless.

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HOW IT WORKS
Personalisation software automates the task of making each copy of an item personal to the recipient using information held in data file in either a CRM system or database. This information can then be imported onto a base design created in something like Quark or InDesign.

According to Simon Currid, production manager at Howard Hunt, some jobs can take as little as an hour to set up, whereas others may take weeks. All you need to set up a campaign is a computer, data program­mer and the all important personalisation software. “You need a very good front-end software platform to put your creations onto the page,” advises Currid.

These solutions, such as XMPie and DirectSmile, range from a couple of hund­red pounds to over a hundred thousand.

Buyers need to look carefully at the functions they require from the software, according to Positive Focus managing director Ivor Dixon. “It is not a one size fits all situation, so the market you are aiming for may determine the software product or products you should look at.”