Direct Mail Firm's Leisure and Finance Move

OTM has moved in to new markets in the leisure and financial services industries following a GBP1m investment in Xerox IGen3 digital printing machines.

OTM has moved in to new markets in the leisure and financial services industries following a GBP1m investment in Xerox IGen3 digital printing machines.

Full colour variable image and data printing was a natural extension for OTM, which had been providing data processing and printing customer communications for more than 10 years.

During that time it had developed data capabilities and adding two IGen3 printers was part of a move described by managing director, Kris Prashad, as a 're-engineering' of the business.

He said: "We were in direct mail and three years ago invested in the transactional mail market.

Where we see the next good opportunity is in the digital printing market because there is significant opportunity to add value.

Prices have been squeezed in traditional direct mail and transactional mail markets over the past three or four years but we have not reached that scenario yet in the specialist digital and personalisation print." One application that exemplified the company's strategy was put together by OTM in less than 12 weeks for tour operator First Choice.

Prashad said: "We had discussions with First Choice and they were interested so we developed it through and bought the IGen3s." OTM has a three year contract for the data processing and printing of personalised travel documentation.

John Broughton, head of product development and revenue generation for First Choice, said: "It revolutionises the First Choice's ticketing process, delivering to the customer a single, integrated, easy to understand, personalised pre-departure booklet with all the customer's relevant package information." Previously the tickets and travel itinerary were printed as multiple pieces with generic designs.

Supplemental marketing messages were delivered in leaflet inserts.

Information on airports and resorts was not customised, so each customer received a complete directory of each subject, making the documentation cumbersome and expensive to post, said OTM.

Broughton said First Choice had recognised pre-departure information was a critical point for its customers in the build up to their holidays.

Documentation that contained more relevant information, better presented, could improve customer satisfaction and lead to more sales.

First Choice travellers will receive customised information on their holidays, including personalised images and content, which over time will be extended to include images of their resort, hotel and the excursions they have selected.

OTM developed a multi-page, chequebook style booklet.

These are produced daily on the IGen3 using the company's composition and data software.

The IGen3 digital presses automatically select different stock for six-up printing, including non-tear stock for the personalised luggage labels.

Booklets are bound in-line and inserted in to window envelopes for enclosing.

OTM estimates it will mail about one million booklets a year and in future phases will be making greater use of its web based decision making and selection tool, O42, to handle higher levels of personalisation.

It is already being used in campaigns for other customers, such as utility provider Npower and vehicle hire company Avis to include marketing messages on customer statements.

Prashad said: "We trialled this with Avis and the research showed that an insert with the prime document rated a response rate of two per cent.

When the message was printed on the invoice the response went up to eight per cent.

People tend to read statements but throw away inserts.

You must have the software.

The IGen3 is the vehicle and it is very good but it would not be possible without O42 to drive it." It was the additional marketing opportunities that sold the booklets to First Choice, said OTM.

The operator is keen to use the booklets to increase take-up of car hire, insurance and holiday extras.

Prashad said OTM was talking to three or four other customers in financial services and retail about using the service and explained: "Any business that sends out disparate documents could have a use for this.

The booklet keeps everything together and provides a means of printing a message where it will be read.

When you have a car insurance renewal, you read the cover document and throw away anything that isn't relevant, such as the offers for windscreen replacement." The first booklets for First Choice went out in the middle of last month after a period of staff training on the IGen3, which is more than seven metres long.

A second machine is to be added during September.

To accommodate both IGen3s, OTM has separated the direct mail business in to its other location in Swindon.

At Leicester OTM also runs six IBM Infoprint 4000 web-fed printers and Xerox Manhattan cut sheet devices.

Prashad commented: "Our strategy is to create two centres of excellence.

In Leicester, we will focus on the high added value end of the print and transactional mail business.

At the same time, we will use our skilled workforce in Swindon to meet the demands of the direct marketing and fulfilment markets.".

Back to top