It is worth noting that this practice is not new. It has been around for decades. However, as technology has advanced, this tool has become even more economical, effective and versatile. For example, technology now allows even the smallest of businesses to capture, use, and segment data. These advances in technology provide a wide range of marketing opportunities that were not available when messaging on statements was limited to a few lines of black text on a printed document.

 Data is critical in our information age, so we will take a closer look at how advances in data technology can be used to create an effective statement marketing campaign. Databases are no longer no relegated to Fortune 500 companies. Almost every business has some type of electronic database populated with valuable customer data. This data can (and should) be used to create targeted, relevant messaging that speaks directly to the recipient of the message.  There is a local restaurant chain that I go to that presents a good example of data collection. They have a loyalty program that provides members with discounts after a certain amount is purchased. Every time I go there, I hand them my card with the check. They swipe the card and know how often I visit, which location I visit, what I order and how much I spend. They own a wealth of information about my dining habits.

 So how could they make use of that data? There are many ways, but because we are discussing statements, let us examine how the data collected by my local restaurant could be used on their loyalty club statements (by the way, this is a hypothetical, as this business does not send loyalty club statements – a big mistake in my opinion). So hypothetically, they could send me my loyalty club statement with information about specials on food similar to what I have ordered in the past (Buffalo Wings). They could send me my statement during a time that I have historically not eaten at their establishment. They could add a coupon for a higher margin item I do not typically order. All of these things have the potential to get me (and my money) into their restaurant at a time I usually do not eat there to buy food I usually do not buy. By using the information (data) I give them, they can tailor the messaging on my statement in such a way as to benefit both the business and me.

 If you think about it, there are many such opportunities for them to personalize their communications to me. I receive email updates from them frequently that could be personalized just like the statements.  They could create a referral program if I get my friends to sign up for the loyalty club. That would give them even more data to use in their customer communications.

 With data, which is now easier to capture and use, messaging can be personalized and specific behavior encouraged.  That is just one example of how statement marketing can impact a business’ bottom line. Can you think of any others? Please share your ideas in the comment section.

 If you are looking to take your business’ marketing to the next level, give us a call. Perhaps we can help make the process easier and start putting that additional revenue into your cash register even faster.

 So I figured what better to do than share them you.  Be warned, there is no order to these thoughts.  No links as they are derived from the lost and ancient practice of writing notes on paper with a pencil.   With that disclaimer, let’s dive in.

 DATA ISSUES

 One of the largest impediments to executing an effective personalized marketing campaign is a lack of good data.  There is no lack of data, just a lack of organization and consistency in the data.  There are so many legacy systems it is impossible to identify one solution to fit all data.  There is also the issue of integration, which is taking the legacy problem and multiplying it by a factor of X.  X in this case is the number of autonomous systems running within one organization.  So there is a CRM system tracking customer data, an accounting system tracking billing, perhaps there is a production system tracking live orders and a pile of prospect’s business cards that, were they not scattered around an office, would reach the moon.  So that is 4 totally separate systems, and I did not include web analytics, social media monitoring and the like.  Thus the formula reads as follows:

 X = A² + M

As stated above X represents the number of legacy systems to be integrated, A equals the number of aspirin I need after working on one of these projects and M represents the Martini I use to wash down the aspirin. 

 LEGAL REVIEW

 I am a lawyer and I have spent time working in large firms.  I hated it, but I did it.  Briefly.  That said, I can understand that certain documents need to be reviewed before being published.  Liability and compliance issues are real and do need to be addressed.  But how #$%* long does it take to review the correction of a typo.  I have seen (and I am not exaggerating) a one word correction on what was supposed to have been the final proof take three days to get approved by legal.  Of course, that did not change the production deadline.

 That is another benefit of TransPromo and other automated document production systems.  Templates can be approved and the data related changes do not need to go through legal review.    Of course there will be exceptions, but templatizing (I may have just made up that word) communications can allow for faster deployment of personalized communications.  I won’t even go into some of the nightmares with medical review.  I will just say that Proctologists can be a pain in the…

 MISSED OPPORTUNITIES

 It is truly amazing what technology has done to communications.  Automation is the rule.  Speed is critical.  And the number of outbound documents delivered in a single day, both paper and electronic, is mind boggling.  And on every one of those documents is an opportunity to build your brand, provide information to customers, and increase sales. 

 Take a simple online order.  A customer orders 10 widgets from Widgets-R-Us.  They typically get an email confirmation of the order.  It is usually black and white, text based and contains only information related to that order.  Then there is the shipping notification.  This is also brief, containing a tracking number and little else.  Finally you get your widgets and there is a packing slip and invoice.  If Widgets-R-Us fails to use these communication points to cross-sell, up-sell and inform, they are wasting opportunities to grow sales and increase customer loyalty.  The sad thing is that sending a personalized, relevant message with the document would not add much to the cost. 

 Along those lines, general email can also contain messaging that could improve sales and customer relations.  A link to a product that the customer might need would help both the company and the customer, but such messaging is the exception (think about what Amazon.com does.  Every click on their site is analyzed and used in every communication.  Is it any wonder they are the 1,000-pound gorilla of online selling? 

 TO SUM UP

 There is really no good way to end this brain dump of a post, so I will just say thank you for indulging my ranting.  If you have any thoughts on these topics, please share them by leaving a comment.  It’s only fair that I read your rants as well.

All of this back and forth can cause compliance issues for businesses and uncertainty for customers.  As we know, uncertainty can cause stress, fear and anxiety.  To make matters worse, that uncertainty hinders any economic recovery.  Good, bad or indifferent, the United States economy needs confidence and credit, to grow.  The smaller the supply of either, the less opportunity there is for economic growth.  If I lose my credit card rewards program, I might not have the confidence in my financial ability to take that trip I was planning.  After all, I only budgeted for hotel and meals, but planned to use reward miles for the flight.  Because of the uncertainty caused by my credit card situation, I might call off the whole trip.  That means there is less money being pumped into the economy and the seemingly perpetual downward spiral continues.  If customers are concerned that they might have to pay higher annual fees to keep their credit cards (because banks desperately need to recover lost revenue), that is money customers will not spend.  And the spiral continues. Notice I said if “customers are concerned” that the bank is raising fees they will not spend.  The bank might not ever actually raise the fees, but the concern is enough to change spending behavior.  Therefore, the companies that want to emerge from this recession as market leaders need to factor human psychology into their marketing and communication strategy more than ever before.

How does this apply to TransPromo and customer communications?  (Yes, I do have a point.  Did you doubt me?)  Note that I referenced the fear and uncertainty as factors potentially hindering economic growth.  This has always been an issue in Keynesian economics.  Today, however, this uncertainty is far more acute as people cope with their belief  that it was the banking system and government, the very entities charged with ensuring the smooth operation of the economy, that let them down.  Today people fear for their future and their children’s future, they are uncertain about what, if anything , the government can, or should, do to help turn around the economy.  Confusion reins when it comes to health care, taxes, environmental protection, deficits and war.   It is no wonder that there has been an increase in people seeking assistance from mental health professionals to cope with lost jobs, lost homes, and lost self-esteem.  Intelligent credit card issuers must seize the opportunity to communicate with their customers consistently, honestly, personally and in a manner that builds trust and confidence.  In their book, Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism, George A. Akerlof and Robert J. Shiller (here is the NY Times Book Review), the authors argue that like the Great Depression in 1929, the current economic crisis is the result of human psychology more than monetary policy.

So again, what the heck does this have to do with TransPromo?  I put it to you that smart organizations, financial institutions as well as every other company that wants customers, need to start communicating more effectively with their customers to calm them down and to keep or gain their trust.  Further, sending 12 page, static “modifications” to card holder agreements is not going to do the trick.  Sure, there were strategic reasons banks did this.  But those reasons cause further mistrust and did not help explain, in plain English, what changes are going to impact THAT PARTICULAR CUSTOMER.   That is where TransPromo comes in (you thought I would never get there, didn’t you?).  Personalized communications, with messages that help to alleviate fear and anxiety, will go a long way toward building that trust.  Earning that customer confidence will make your company the trusted one people want to deal with when things get better.  And things will get better.

Now is the time to build an integrated communication strategy.  Now is the time to plan your goals, plan how you will reach those goals, plan how to measure your progress toward those goals and plan how to improve your results. TransPromo is a means to accomplish all of this in a way that is almost guaranteed to be seen by the customer.  So put clear, personalized information on your transactional documents.  Don’t just do what is legally required and nothing more.  Go the extra mile and provide as much information as the customer can use.  Knowledge is power.  When people feel they have more power, they are more confident.  When customers and prospects feel more confident, and your company is the source of that positive emotion (even if it is subconscious), they will trust your company over your competition.  Therefore, a laser-like focus on earning your customer’s trust must be a priority for every person in your organization.

All of the new regulations and all of the changes to those regulations present an opportunity to differentiate your company, to separate your company from pack.  TransPromo is but one tool to accomplish this, but it is a powerful tool.  You will surely need other tools to complete a comprehensive strategic communication plan, and we will address those other tools in future articles.  The take-away here is that in these times of uncertainty, developing a communication strategy that builds trust and confidence will earn you rewards that dwarf the investment.

As always, if you have any questions, please contact us.  Our mission at White Space is to help our customers build communication strategies that foster trust and create good will.  If you have any thoughts or experiences you would be willing to share, please leave a comment.  We are all smarter together than any of us are alone.

In the interest of not losing every one of my readers, I will spare you the details of all of the amendments.  But there are some important (and funny) issues raised in a select number of these amendments and I wanted to share them with you so we can avoid some of the penalties for non-compliance.

As it is the first amendment offered, looking at Amendment 1 seemed as good a place to start as any.  It is also quite relevant in how payments are made and fees charged.  In addition, for those of us in the TransPromo world, this pertains to how offers, applications and contracts are printed and precisely what is contained on them.  Therefore, we really are looking at detailed issues related to document compliance.

Pay to Pay

This amendment, offered by Democrat Luis Gutierrez representing the 4^th Congressional District of Illinois was accepted on April 30, 2009.  In essence, one of the things this amendment does is allow credit card companies to charge you for paying your bill.  Well, that characterization might be a tad unfair, (nah , it’s fair).  Do you agree?  Read on, decide, and please let us know what you think.

This amendment allows credit card issuers to charge you and me, regular consumers, for making expedited payments by telephone.  Of course, card issuers cannot simply charge people whenever they want.  Under the amendment, the consumer must request such an expedited payment (apparently, they do not have to request the associated fee).

So in order to pay your bill on time and avoid a late fee, you will be charged an expedited processing fee.  No, I am not joking.  Now practices will vary among card issuers, so do your homework here.  What companies charge for late fees and expedited payments will vary greatly so read all of your mail from your card companies.  The devil is in the details.

Document Mandates – How Big is Your Font?

This amendment also requires that all credit card offers (and solicitations and contracts, etc…) notify prospective applicants that excessive credit applications can adversely affect their credit rating.  QUESTION:  if a person is making an excessive number of credit card applications, do you think they are really concerned about their credit rating?

Like much of the rest of the bill, the implementation of this is left to the Board of Governors of the Federal Reserve. This my friends, is where the wheels come off the cart.  The “suggested” guidelines have creditors supplying cardholders with information regarding the availability of legitimate and accredited credit counseling services.  Therefore, we have lenders collecting fees when they receive payments from people they know have bad credit because they have applied for a bazillion credit cards, but at least they are being offered the name of a credit counselor, in writing.  Perhaps it is even on a transactional document.  Lenders can use the effectiveness of this medium to prove they communicated with their customers in writing.

Font sizes

However, not just any writing will do.  Congress, loath to read bills themselves, requires all written information on any application, solicitation or agreement for any credit card account appear in no less than 12 point font.  Yup, the leaders of the United States of America, a country in economic turmoil dealing with massive deficits, fighting wars all around the globe, are spending their time mandating *&^#% font sizes.  And, just in case you are applying for your card in a store, the font police got your back there, too.  Businesses who are self-issue credit must display a “large, visible sign” at counters with the same information that is required to be disclosed on the application itself.

The problem: they don’t say what size font must be used on the signs.  Some lawyer’s kid will get their braces paid for with tax dollars when this oversight is litigated (and it will be litigated).  Folks, I can’t make this stuff up.  It’s nuts, but it’s the law.

Stay tuned for more, or subscribe to the feed so you don’t miss one important (or silly) compliance issue.  While we try to look at this stuff with a bit of humor, it is important to your business.  And if you are concerned that the intricacies of these laws could impact your company, it would be wise to get some professional input.

After all, if you have a small font (hey, I thought size didn’t matter!) it might be more than just the guys at the gym harassing you!

Mailbox or Pre-Recycle Bin?

Why I do this I have no idea.  Unless it is my birthday (which is rare), I am inevitably disappointed with the daily haul.  In fact, I could ALMOST skip getting the mail and never miss it.  Note that I said ALMOST.  There are a few things that I need from in that little box which is why I fire up the old GMC and roll the 9 yards to the mailbox.    I catch my breath and examine the day’s delivery.

1.  A couple of catalogs from some retailers from whom I bought a gift years ago and have never bought anything since, and I do not intend to.  Those go right into the recycling bin;

2.  A couple of direct mail postcards.  If there is cool personalization (not just my name or even a PURL – been there, done that) or an obvious offer too good to pass up , I might look for a few seconds.  If the offer is good enough, and easy enough,  I might even take action.   But if I see “Resident” or “Our Friends” as the addressee, it’s going right into the bin, unopened, unexamined and a total waste to the sender who probably paid a decent amount to design, print and mail the piece.  Sorry.

3.  A package of coupons, presumably from local service providers, addressed to “Current Resident” (very warm).  I never even open the envelope any more.  I don’t have to.  I can tell you what’s inside because I used to open them looking for a great deal, but found that it was the same junk every time.  Worse, much of it did not even apply to me.  It goes, unopened, into the bin.

4.  An Explanation of Benefits from my health insurance company.  That I keep to look at later.  I want to make sure that there is not some claim wrongly denied, so I will review that thoroughly.

5.  A few bills (my homeowner’s insurance, a car payment and a few of the store-brand credit card statements my wife insists on getting at every location she shops.  Those I keep and look at.  Closely.  I will spend more time reviewing one those transactional documents than I spend on the half-dozen pieces of unsolicited mail. I NEED these bills (that why I said “ALMOST” earlier).  I have to pay them on time or have to pay late fees, interest and penalties which up until recently, the small print in my card holder agreement said could have included the forced donation of a kidney or one of my children.  The CARD Act (written about at White Space University) puts a halt to forced organ harvesting.  With the exception of section six thousand eighty two, Sub-Chapter Y, paragraph h(6) which allows for the organ to be harvested so long as that term is prominently listed in a 14 point serif font within the first 26 pages of your 87 page card-holder’s agreement.  You did read your card holder’s agreement, didn’t you?.   Here’s one one if you are looking to cure insomnia.

I do not just say all of this because I am in the statement business.  OK, that’s not entirely true.  If I were a school teacher or an astronaut, I probably would not have written a post about tossing mail and reading statements.  But I digress.

The point is that I throw away the vast majority of my mail without even looking at it.  And I bet you do the same!  In fact, I am almost sure of it.  That is why TransPromo messaging works so well.  It puts the right message in the hands of the right person on a document they will review closely and carefully.

Putting your messages where they will be read seems like a pretty good idea.   How many ways could your business benefit from having almost every recipient see your targeted, personalized message?   I know.  It’s a lot.  Let White Space MARKETING help you

That is another reason transpromo works so well.  The right message gets to the right person the right way.  Data personalizes the message so that it is relevant and timely and speaks directly to the recipient.  Because the message is on a transactional document, it is almost guaranteed to be seen, regardless of the delivery method.  People look closely at their transactional documents, so why not use them to effectively communicate to your customers?   You have the data.  You have the white space.  You are sending the documents anyway.  Getting a better outcome without adding expense seems like an idea that could take hold.

Of course, email communications have their place and should not be overlooked as a valuable communication tool. You would not use only one tool to build a house, why limit yourself when it comes to building your company’s communication strategy.  Use all of the tools you can, especially the most effective and least costly tools you have available.  TransPromo is that tool.

So make sure your messages are seen by the right people.  Make use of transpromotional message today.  Call us today for additional information on turning your documents into revenue.  You’ll be glad you did.

So is your message “junk?”  I bet you would say no.  What would the legislation say?  If passed, how would that affect your ability to communicate with your current customers and future prospects?  It doesn’t look good, does it?  But take heart for all is lost!  You see, transactional documents, by their very nature, are not covered any of the “Do Not Mail” proposals.    You can’t “opt out” of receiving billing documents and legally required notices.  In addition, people read those documents far more than they read direct mail.  This means that no matter what the “Do Not Mail” legislation says, you can use your data to make sure that the right person is receiving the right message at the right time.

With White Space as your transactional document partner, you can not only fight city hall, you can win!

 One part of the law requires credit card issuers mail or deliver periodic statements at least 21 days before they are due.  That is a change from the prior law, which was 14 days.  Another part of the law that became effective August 2009 requires card issuers provide at least 45 days notice of any APR increase or other significant change in terms. 

Please notice that these laws are all focused on CUSTOMER COMMUNICATION. 

Massive Legislation - the cure for insomnia

 Come February 22, 2010, we will have to deal with laws that are completely reshaping the way we handle transactional documents.  The law imposes requirements that are likely add at least a half page to the average statement.  This is a great opportunity for everyone in the TransPromo and marketing field. 

 An opportunity to open a dialog with our customers.  An opportunity to use individual statements not only to comply with the law, but also to improve our communications with customers.