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Print Service Providers Increasing Profitability with Advanced Variable Data Printing Solutions

(Weymouth, MA) August 6, 2008 . . . Print service providers who are already comfortable with entry-level VDP can now take advantage of growing market demand by implementing advanced VDP solutions, which are easier to use than ever before. Advanced VDP solutions enable marketers to leverage one or more databases of information to develop relevant communications that improve the effectiveness of marketing campaigns. By accessing a quality, multi-table data source and strategically segmenting the messaging to specific groups within a target audience, campaign results can be dramatically improved.

InfoTrends Director Laureen Chudzinski commented, “By moving from entry-level to advanced VDP solutions, a company can differentiate its business in the marketplace and improve profitability while moving deeper into the marketing supply-chain. It becomes a high value partner to its customers and an integral part of the campaign development process. This can open the door to higher margin products and service offerings with new revenue streams as well as greater potential for customer retention.”

Print service providers who deliver variable data printing services, even at an entry-level, can benefit from several new revenue streams. In addition to increased profits generated by selling higher margin variable data products, print service providers can charge fees for the following services:

  • Data preparation and hygiene
  • Customer engagement strategy consultation
  • List acquisition
  • Project management
  • Design and VDP composition

Variable data applications also drive more digital print volume. In addition to capturing a higher price per sheet, this volume increase helps leverage the total cost of ownership of the digital equipment investment and spreading the cost of the equipment over a larger number of impressions. Many vendor service and consumable agreements provide a tiered pricing model based on average monthly A4 sheet volume, which means that the higher the volume, the more consumables are purchased and the lower the price per unit becomes because of volume purchase discounts. This, again, acts to reduce the total cost of operations on a per-piece or per-project basis.

InfoTrends has released a new report in its Customized Communications White Paper Series entitled Customized Communications: Advanced VDP. This document provides a definition for Advanced VDP and identifies the market opportunity for print service providers in the In-plant/CRD and commercial print market segments. It discusses the need for document owners and marketing professionals to deliver more relevant and more effective business and marketing communications and outlines how advanced variable data printing solutions can be employed to help marketers and document owners achieve business goals. It also provides examples of applications and strategies for selling into each market segment. InfoTrends has also released an alternate version of this report that is geared toward solution suppliers.

For more information about this report or to make a purchase, visit our online store or contact Jennifer Skerrett at ext. 111 or via e-mail at .

InfoTrends, a Questex company, is the leading worldwide market research and strategic consulting firm for the digital imaging and document solutions industry. We provide research, analysis, forecasts, and advice to help clients understand market trends, identify opportunities, and develop strategies to grow their businesses. Additional information about InfoTrends is available on the Web at

Copyright © 2008 InfoTrends. All rights reserved. Reproduction or reuse of InfoTrends materials is strictly prohibited without prior written consent. If you are interested in referencing InfoTrends content, please submit your request to .


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