outsourced printing and mailing trends
Several trends are impacting the industry of outsourced printing and mailing. As many companies shift from in-house operations to third parties, they still need to be aware of factors that influence their providers.
As a transactional print and mail leader, PCI Group is tracking trends and their effect on customers. Here are the latest ones and why they matter.
Security and Compliance Concerns Grow
In the age of constant consumer data breaches, malware, and ransomware, businesses are scrutinizing their partners more closely. Since transactional communications contain PII (personally identifiable information), PHI (protected health information), or both, data security must be a priority.
Hackers use sophisticated methods to target any organization with PII and PHI. As such, outsourced printing and mail providers must be proactive in measures. Ideally, they should invest in the latest cybersecurity tools and perform regular vulnerability scanning and penetration testing.
Security and compliance share the same environment. Increased security initiatives align with compliance requirements. The best in the industry go beyond these, elevating their vigilance in safeguarding sensitive and confidential information.
More Consumers Transition to Digital Communications
The paper-to-digital transformation accelerated during the pandemic and has shown no signs of contracting. According to a consumer financial report, consumers like the convenience of receiving electronic statements and making payments online. They were more likely to do this in the categories of telecom, utilities, personal finance, and insurance.
While many people still want the “paper trail” of their transactions, the adoption of email statements, notifications, and other secure documents has risen. This change in consumer behavior means companies must use a secure and compliant email platform.
The system you use for marketing or promotional messages isn’t sufficient. This is a cost reduction but also an increased risk. When moving customers to digital communications, you should look for a solution with:
- Layered security
- Controls to meet all the mandates for PII and PHI documents
- Protocols that adhere to Federal, State, and internal guidelines
To meet customers where they are, you should also consider an e-delivery system that complements printed and mailed communications. One key feature of this would be to trigger a physical letter if needed. Also beneficial is the ability to manage multi-channel communications with one provider, integrating digital and paper.
Automation Drives Efficiency
In any complex production, efficiency can be a struggle without dedicated strategies. One of those should be automation. Many outsourced print and mail companies have woven automation into the entire process. It starts with data upload through a secure processing hub, which starts the automated workflow.
As the letters move through the process, automation reduces or eliminates manual work, ensuring jobs are the most efficient. Of course, smart automation doesn’t happen by accident. It’s the product of using a framework like Lean Manufacturing and creating standard works.
As the communication ends the process, automation of insertion and verification are also critical. Intelligent insertion involves scanning 2D barcodes printed on each sheet. This informs the inserter of which ones go into the envelope. Another camera verifies this by taking an image of the envelope.
Innovative providers in the space are consistently improving the automation cycle to ensure it’s seamless and efficient.
Rising Costs of Postage and Materials Continue
Any company managing transactional letters in-house will see sharp increases in costs for postage, paper, ink, equipment, and more. As your print numbers decrease, your costs for these things actually go up because lower volume.
The expenses for materials, especially paper, are currently volatile as a result of tariffs. Postage is now on a bi-annual increase, too. The best option is contracting with an outsourcing partner. They have the scale to warrant the best rates for postage and use pre-sorting and commingling to achieve this.
These companies also buy materials in large quantities and have direct contracts with manufacturers. It ensures that they can still get the lowest prices regardless of the market.
Data Insights Become More Critical
Data around any of our operations has great value. It provides the foundation for strategies and forecasting. Having access to this is critical, and having it in real-time enables you to improve decision-making quickly.
Not every transactional print and mail company offers this. If they do, reviewing it may be cumbersome, or the data may be stale.
A solution with advanced reporting lets you control all the data generated from your jobs. Another function it should have is the ability to track letters from upload to delivery.
As a result of this transparency, you can analyze it to understand performance. Combining this data with other internal sets can bring clarity to trends, costs, and customer interactions.
Outsourced Printing and Mailing Trends Are Always in Flux
In this dynamic industry, so many factors impact the trends we’re watching. We understand that every business wants to enhance efficiency, reduce costs, and gain more insights. With trends come opportunities to improve, and we’re doing just that, ensuring our product maps reflect the current and future needs of our customers.
Learn more about outsourcing with us today.
