News > Articles > 2006-06

Solidifying Strategic Client Partnerships Are Vital to Success in Today’s Mailing Industry

Technology and Competition Have Combined to Create a High-Performance Communications Channel

As seen in Mailing Systems Technology, June 2006

By Christopher M. O'Brien, President & CEO, Neopost, Inc.

Just when you think your team has all the answers, a customer reminded me whose opinion matters most. Our sales leaders just happened to be in a workshop, strategizing on how we would manage the aggressive growth spurt the company is in. I happened to check an email during a break and a customer sent me his thoughts on a concern on how our growth was affecting our partnership. I read the letter to the team and our conversations were redirected for the balance of the meeting.

To be a player in your market I have learned that your company has to succeed in three important areas. They are a quality product, strong operational excellence, and customer intimacy. However if you wish to outshine your competition, you have to stand out in excel in one of the three.

Now in this fast moving technological arena we compete in which should a company choose to invest to be their greatest strength? One could argue that a personal computer supplier must maintain a technological advantage to stay ahead of their competitors. We all know of another PC supplier who has excelled in the operational excellence side of the equation. They have figured out a way to ship a customized product in three days while getting paid up front then not paying suppliers to 60 days later.

Today’s formula is getting more challenging. Companies are moving at breaking speeds in duplicating both product technology and operational excellence. It has become clearer to many suppliers, especially in the mailing industry, is that customer relationship is not easily acquired or cloned. It is more important than ever before, in order to be a top player in any market, you must have a deep-rooted relationship on your customer’s key business drivers. In other words, yesterday’s vendor-client relationship has evolved into a strategic partnership. This has become increasingly evident in the mailing industry over the last several years.

Technology Delivered.
There was a time when shipping a package or mailing a letter was an arduous process. As a mail customer, you essentially had one option for all your mailing needs: a trip to the United States Post Office (USPS). There were no consumer benefits that sprouted naturally out of healthy competition such as, the ability to pre-sort by zip codes, multiple carrier options, cost accountability and bulk rate discounts. But today, as a direct result of the steady influx of new technologies and innovations, options abound. Mail users now have multiple options for saving money and maximizing the efficiency of their mail operations.

Over the years, I’ve seen postage meters evolve from a stamp printing “box” to a powerful and intelligent tool. Today’s meters are equipped to keep pace with the ever-changing regulations of the United States Postal Service with built-in software that allows tracking, verification via e-mail, address correction, multiple postage payment methods, and much more, This enables companies to have the equivalent of an internal post office at their finger tips.

It is in large part due to these technological advances that postal services are actually thriving at a time when many predicted their demise in the face of digital options. In particular, many companies recognize that direct mail continues to be a strategically effective means of communicating with customers and prospects. Moreover, the USPS has adapted to make direct mail a more enticing communication solution through the use of incentives such as discounts for bulk mailing, pre-sorting, etc. There is also a strong focus on efficiencies and standardizations for shipping packages.

So now the question arises: how, in the constantly evolving and increasingly competitive mailing industry, do equipment and solution providers keep customers satisfied, while maintaining a competitive edge? The answer - you stay in step with needs of your customers and a step ahead with of the innovations of your competition.

Piece Mail.
The increase in user-friendly technologies has led to a much savvier customer base for mailing services and products. Customers are looking for ways to meet their mailing goals while cutting costs. With the introduction of multiple competing vendors, if you can’t deliver on these, the competition is only a click away.

As I’ve said, mailing service companies need to be flexible, to nimbly adapt to industry trends and bend to customer needs. Modularity is the key to this. One of the mail industry’s biggest hurdles, much like any other technology sector, is consumers’ fear that once they make an investment in a piece of equipment, their business needs will change, and they will outgrow that equipment’s capabilities.
To combat this issue, equipment providers’ products and technology must adapt quickly and easily to changes in business conditions. This is where modularity plays such a key role. Unlike most technological devices or systems, mailing machine components can be easily upgraded to meet customers’ ever changing mailing needs. For example, if you need to switch to a higher volume paper feeder, you don’t have to replace your entire machine; you simply switch out one component for another.

Keeping Tabs on the Customer.
As the industry continues to progress, it’s now more important than ever for a mailing services provider to connect with their customer – to gain a complete understanding of how and why they are using the mail. What are their unique issues and priorities? Do they have specific needs? Does your client need to be further educated regarding USPS regulations? Could those 500,000 letters they send out every week cost 29 cents a piece, instead of 39 cents? Does your client understand the ramifications of decertification, and, are they prepared to make the necessary changes? Only after you build a strategic relationship with your customers can you begin to offer them efficiency-maximizing solutions that address their needs while separating you from your competition.

A key component to the customer intimacy strategy is educating your representatives on the industry. How can the people on the front lines be helpful in accessing customer needs if they aren’t fully versed in the regulations and processes of the industry themselves? Companies should be spending an equal amount of time on post-awareness training for their people that they spend on product training. As a result, consultants will be able to answer questions like: What does the USPS rate change mean for my business? Are there any discounts available to me? How will it be implemented? How can I protect myself as much as possible from unbudgeted cost spikes? This knowledge goes a long way in securing a customer’s confidence in your ability to accurately assess and meet their mailing needs.

Mailing a letter or parcel isn’t what it used to be - it’s better! And as the industry continues to evolve, solutions providers must continue to strengthen customer relationships by offering enhanced technologies and customer-driven services.

Putting the Stamp on It!
Technology has created the ability to provide customers with services and options that were previously never dreamed of. But, as with any opportunity, a new set of challenges has also been introduced. Providers must be prepared to move more quickly and be more flexible than ever before. They must keep abreast with constantly changing regulations and be prepared to act in a moment’s notice. Customers are now strategic partners and you must know their businesses as well as you know your own.

Options abound for consumers and the demand on providers for the latest and greatest is at an all time high. Companies that can address this proactively are well positioned to lead the industry for the next several decades. Mail is now a multi-billion dollar a year operation - not bad for an industry that began with a couple of ponies.