Nov 30, 2009
Xerox Digital Business Development Resources Drive Success
OffiTek and Progressive Communications apply Xerox tools and support services to achieve fast-paced growth
By Gina Testa, Xerox
The current recession is both a threat and an opportunity, for even amid the gloom, some graphic communications providers have thrived. We are tracking these successes and have noticed that several commonalities have emerged.
Digital printing will continue to grow at an aggressive pace, according to industry consultancy Pira International. In 2007, the global digital printing market was valued at $68 billion and is expected to double again by 2012 when it will account for more than 21 percent of the total market value of the print industry.
Another commonality is that successful companies aren’t shy about using external business development resources. Drawing upon these experiences increases the likelihood that they will deliver winning campaigns to customers and prospects who are seeking smarter ways to market.
Here are two stories of graphic communications firms deploying digital color printing and Xerox business development resources to find success.
30 Percent Growth in Wide Format
Rochester Institute of Technology Professor Emeritus Frank Romano recently said that if he was a print provider with a little extra money, he would invest in wide-format inkjet printing. “The market is still young and vibrant and doesn’t yet have the degree of competition that could commoditize it,” he explained. Margins are still very lucrative — 80 percent and more for some digital color products. And the graphics segment — for presentations, posters, point-of-purchase displays, signs and banners — is projected to grow by 7 percent worldwide this year to reach $4.8 billion, according to InfoTrends.
Office Technology Innovations (Offitek), a division of Copy Color, Inc., in Puerto Rico, sells design services and printed output to a diverse customer base of photographers, painters, graphic artists, sign makers, retailers and others.
When the department acquired a Xerox 8264E Color Wide Format Printer it received two benefits. The new printer itself provided new capabilities, such as printing on canvas media, to help expand the business. And to support the installation, Xerox provided Offitek with the Xerox ProfitAccelerator Wide Format Made Easy Kit, which is designed to help print providers to quickly grow wide-format revenue. The kit’s resources include color media samples, application files and strategies for sales prospecting.
Offitek uses the kit to identify possible customer applications, to show customers the range of indoor and outdoor media available, and to demonstrate the machine’s high-quality photo reproduction capabilities. “This way the customer can see and feel the media to decide what they need," Rivera said.
The approach has helped Offitek grow its wide-format business by 30 percent since acquiring the 8264E printer last year, driving average monthly volume to about 2,000 square feet. Growth has come both from existing markets and from new specialty markets, such as artists, photographers and high-end retail stores. Rivera sums up the reason for their success this way: “If you can show it, you can sell it.”
Systematically Building the Business
Progressive Communications, based in Florida, had its light production Xerox DocuColor 242 Digital Color Printer/Copier just six months when it recognized a larger opportunity. But for the full-service commercial print, direct marketing and fulfillment company to capture more of the profitable market for digital, variable color, it needed a more powerful production press.
According to Xerox Business Development Consultant Mickey Call, they also needed to do the necessary planning and training to make the investment pay off. So when they chose the Xerox iGen3 110 Digital Production Press as their new press last spring, Call began helping them prepare well in advance of the press’s installation.
He met with the Progressive Communications sales team for three months preparing them to use the more consultative approach that’s required for selling personalized communications programs. Call then worked with senior executives and the Marketing Accelerator Kit, part of Xerox’s ProfitAccelerator Digital Business Resources, to develop a marketing plan in support of the new business.
To reach new markets and drive print volume, Progressive Communications used Xerox’s ProfitAccelerator vertical market kits for industry knowledge and tools to ease entry into the healthcare and education markets. As a result, the sales team has added several new clients in these segments. And to keep the momentum going, the company uses the Xerox ProfitAccelerator Open House Kit to help plan its “Summer School” seminars, where they educate existing and prospective clients on the power of relevant personalized communications for generating high return on the customer’s investment.
The efforts paid off in a big way — even as the recession took hold. Volume on the iGen3 press quickly grew, from about 40,000 pages the first month to 1.2 million pages in March 2009, averaging 500,000 monthly pages. Some 80 to 85 percent of the company’s work is variable, developed with software from XMPie, Inc., and often using as many as 15 fields to make the personalization more relevant.
“The iGen3 press is keeping us a step ahead of our competition,” said Gabe Hernandez, vice president of Operations, Progressive Communications. “It allows us to keep pushing the envelope on design and customization for our customers.”
Their business is doing so well that they are adding a second iGen press. And the Xerox training, planning resources and business development support has been critical. “The message from Xerox is clear, you are not alone — before, during or after the installation,” said Hernandez.
That’s a reassuring message in these challenging times.
Gina Testa is the vice president, graphic communications, Xerox Corporation.