The Future of Mail 2.0 · Contributors: Ron Gilboa, Director Andy Gordon, Senior Consultant Trina Gupta, Consultant Holly Muscolino, Director Creative Services: Tracey O’Neil, Graphic

The Future of Mail and Transaction Documents

Executive Director: Charles M. Corr, Group Director

Project Coordinator: P.C. (Pat) McGrew, Associate Consultant

Senior Advisors: Jeffery J. Hayes, Group Director Charles A. Pesko, Jr., Managing Director

Contributors: Ron Gilboa, Director Andy Gordon, Senior Consultant Trina Gupta, Consultant Holly Muscolino, Director

Creative Services: Tracey O’Neil, Graphic Designer

Editorial/Proofreading: Donily Corr

This report is copyrighted by CAP Ventures, Inc. and is made available to a limited number of CAP Ventures clients subject to the following conditions: • CAP Ventures retains all rights to this report in its entirety. • Reproduction and/or disclosure in whole or in part to parties other than the CAP Ventures client to

whom the document was originally sent is prohibited without the express written consent of CAP Ventures.

• This report should be treated as confidential and propietary for internal use only. • The information is believed to be accurate and reliable, but cannot be guaranteed to be correct or

complete

CAP Ventures, Inc. 600 Cordwainer Drive Norwell, MA 02061

(781) 871-9000 www.capv.com

The Future of Mail and Transaction Documents May 2003

© CAP Ventures, Inc. www.capv.com Page 2

May 2003 The Future of Mail and Transaction Documents

Page 3 www.capv.com © CAP Ventures, Inc.

Table of Contents Table of Contents.......................................................................................................................................... 3 Table of Figures ............................................................................................................................................ 6 Executive Summary .................................................................................................................................... 12 Introduction................................................................................................................................................. 16

Why Consider Change? .......................................................................................................................... 18 Our Goals................................................................................................................................................ 19 Methodology........................................................................................................................................... 20

Market Research................................................................................................................................. 20 Initiatives and Opportunities....................................................................................................................... 23

Driving Change....................................................................................................................................... 29 The “E” Initiatives: Why Go Online?.................................................................................................... 31 The “M” Initiatives: Managing Information Around Transactions and Mail........................................ 39

Customer Relationship Management ................................................................................................. 39 Content and Document Management ................................................................................................. 42 Compliance Issues.............................................................................................................................. 44 Digital Rights and Digital Asset Management................................................................................... 45 Mail Management .............................................................................................................................. 46 Caveats ............................................................................................................................................... 47

The “D” Initiatives: Selecting Distribution Alternatives....................................................................... 47 Technologies that Impact the Future of Mail.............................................................................................. 51

Adopting Technologies........................................................................................................................... 51 Personalization........................................................................................................................................ 52

Assessment ......................................................................................................................................... 54 Color ....................................................................................................................................................... 56

Assessment ......................................................................................................................................... 57 Automated Document Factory - ADF .................................................................................................... 57

Assessment ......................................................................................................................................... 58 Digital Smart Factory ............................................................................................................................. 59

Assessment ......................................................................................................................................... 60 Extensible Markup Language - XML..................................................................................................... 60

W3C XML Working Groups.............................................................................................................. 63 XML Technologies ............................................................................................................................ 64 Assessment -- XML ........................................................................................................................... 65

PPML...................................................................................................................................................... 66 PPML Workflow: Producers and Consumers ................................................................................... 70 PPML/VDX – The ANSI Standard .................................................................................................... 71 Archiving............................................................................................................................................ 71 Viewing .............................................................................................................................................. 71 Assessment -- PPML.......................................................................................................................... 71

Job Definition Format - JDF................................................................................................................... 72 Assessment – JDF .............................................................................................................................. 74

Postal Address Standards – ADIS and Others ........................................................................................ 74 ADIS – Address Data Interchange Specification ............................................................................... 74 Assessment ......................................................................................................................................... 76

Web Services .......................................................................................................................................... 76 Assessment ......................................................................................................................................... 77

Portable Document Format -- PDF......................................................................................................... 77 Tagged PDF ....................................................................................................................................... 78 PDF/X ................................................................................................................................................ 78



Assessment ......................................................................................................................................... 79 JAVA...................................................................................................................................................... 81

Assessment ......................................................................................................................................... 81 Digital Front Ends (DFE) ....................................................................................................................... 82

Assessment ......................................................................................................................................... 82 Advanced Function Presentation -- AFP ................................................................................................ 82

Assessment ......................................................................................................................................... 84 Universal Pre- and Post Processing Interface - UP3i ............................................................................. 84

Assessment ......................................................................................................................................... 84 Consumers and the Mail ............................................................................................................................. 87

Paying the Bills....................................................................................................................................... 95 Bill Presentment and Payment Issues............................................................................................... 101 Convenience Printing ....................................................................................................................... 104 Satisfaction with the Process............................................................................................................ 107

Marketing Issues................................................................................................................................... 113 Direct Mail............................................................................................................................................ 115

Email Marketing............................................................................................................................... 119 Security Concerns ............................................................................................................................ 123

Analysis ................................................................................................................................................ 126 Transaction Document Owners and the Mail ........................................................................................... 127

Quick Stats: Transaction Print.......................................................................................................... 128 The Survey Results ............................................................................................................................... 129

Managing Documents ...................................................................................................................... 136 Transaction Document Volume ....................................................................................................... 140 Problems with Paper Based Transaction Document Processes........................................................ 141 E-Delivery Issues ............................................................................................................................. 144 Color and Transaction Documents ................................................................................................... 159 Marketing and the Transaction Document ....................................................................................... 162 Other Transaction Mail Data............................................................................................................ 165

Conclusions .......................................................................................................................................... 167 Direct Mail Document Owners and the Mail............................................................................................ 169

Quick Stats: Direct Mail Print .......................................................................................................... 171 The Survey Results ............................................................................................................................... 172 Demographics....................................................................................................................................... 173 Spending ............................................................................................................................................... 177

Telemarketing and Other Direct Marketing Expenditures ............................................................... 186 Spending with External Service Providers....................................................................................... 191

Printing Technology ............................................................................................................................. 193 Direct Mail Digital Printing Forecast ................................................................................................... 197 Marketing Messages ............................................................................................................................. 198 The Technologies of Direct Mail Environments .................................................................................. 198 Direct Mail Production Activities......................................................................................................... 207 Direct Marketing Systems .................................................................................................................... 211 Miscellaneous Issues in Direct Marketing............................................................................................ 216 Technology Topics ............................................................................................................................... 220 Conclusions .......................................................................................................................................... 222

Service Providers and the Mail ................................................................................................................. 225 Quick Stats: Service Providers ......................................................................................................... 225

The Survey Results ............................................................................................................................... 225 Demographics....................................................................................................................................... 226

Technology....................................................................................................................................... 231



Equipment & Services...................................................................................................................... 235 Revenue – Transaction Documents ...................................................................................................... 240

Digitally Printed Messages............................................................................................................... 245 Revenue – Direct Mail.......................................................................................................................... 247 Investment Plans................................................................................................................................... 255 Trends ................................................................................................................................................... 257 Conclusions .......................................................................................................................................... 262

Perspectives on The Future of Mail .......................................................................................................... 264 Conclusions............................................................................................................................................... 273 Appendix A: Key Suppliers ..................................................................................................................... 275

Hardware Vendors................................................................................................................................ 275 Printers ............................................................................................................................................. 275 Mailing Equipment........................................................................................................................... 277 Pre/post Processing .......................................................................................................................... 278

Software Vendors ................................................................................................................................. 280 Content Management Key Vendors ................................................................................................. 281 XML Software Key Vendors ........................................................................................................... 282 Web Services Key Suppliers: ........................................................................................................... 283 Document Development and Transformation Software:.................................................................. 284 Personalization Software.................................................................................................................. 289 Font and Graphic Software .............................................................................................................. 290 Output Management......................................................................................................................... 290 EBPP/EIPP....................................................................................................................................... 292 Mail Verification.............................................................................................................................. 293

Outsourcing .......................................................................................................................................... 293 Mail-Oriented Organizations ................................................................................................................ 294

Appendix B: Standards and Regulations ................................................................................................. 297 Datastream, Formatting and Interchange Standards ............................................................................. 297

AFP References................................................................................................................................ 297 IBM Redbooks Related to Printing .................................................................................................. 297

Regulations ........................................................................................................................................... 297 USPS Standards.................................................................................................................................... 298 Graphic Technology Standards ............................................................................................................ 298

File Formats for Content Data Exchange ......................................................................................... 298 Content Data Definition ................................................................................................................... 298 Definition of Input Data for Document Creation and Prepress ........................................................ 299



Table of Figures Figure 1 Corporate Transactional Data Flow.............................................................................................. 19 Figure 2 Expected Mean Change in Transaction Print Volume: 2003 - 2007 ............................................ 25 Figure 3 Reasons Consumers Pay Online ................................................................................................... 28 Figure 4 Postage Costs Perspectives........................................................................................................... 29 Figure 5 Change Drivers ............................................................................................................................. 30 Figure 6 Benefits of E-Business.................................................................................................................. 30 Figure 7 B2B Payments in the US 2002-2010 in Billions USD ................................................................. 32 Figure 8 Consumer Transactions – Payment Means in Billions USD ........................................................ 33 Figure 9 US Census Bureau Estimates for the Number of US Households................................................ 34 Figure 10 Why Has E-Bill Presentment Not Been Adopted Faster ............................................................ 36 Figure 11 Percentage of Customers Viewing and Paying Online............................................................... 37 Figure 12 Document Technology Application Expense Distribution......................................................... 43 Figure 13 Management of Traditional Printing and Internet Bill Presentment........................................... 49 Figure 14 Preferred Method of Receiving Marketing Information............................................................. 53 Figure 15 Strong Preference of Personalized Information.......................................................................... 53 Figure 16 Interest in 1:1 Among Direct Mailers......................................................................................... 54 Figure 17 More Printing Moves to Color as Price Decreases ..................................................................... 56 Figure 18 Service Providers and the ADF .................................................................................................. 58 Figure 19 Service Providers and the Digital Smart Factory ....................................................................... 60 Figure 20 Service Providers and XML ....................................................................................................... 63 Figure 21 Interest in PPML Among Direct Mailers.................................................................................... 68 Figure 22 Service Providers and PPML...................................................................................................... 69 Figure 23 PPML Workflow ........................................................................................................................ 70 Figure 24 Interest in JDF Among Direct Mailers ....................................................................................... 72 Figure 25 Service Providers and JDF ......................................................................................................... 73 Figure 26 JDF Flow .................................................................................................................................... 73 Figure 27 Service Providers and PDF-based Workflow Tools ................................................................... 80 Figure 28 Interest in PDF Workflow Among Direct Mailers ..................................................................... 80 Figure 29 Service Providers and JAVA...................................................................................................... 81 Figure 30 Service Providers and Advanced Function Printing................................................................... 84 Figure 31 Service Providers and UP3i........................................................................................................ 85 Figure 32 Interest in UP3i Among Direct Mailers...................................................................................... 85 Figure 33 Number of Bills per Month ........................................................................................................ 88 Figure 34 Number of Bills per Month – Breakout...................................................................................... 89 Figure 35 Number of Bills per Month by Income – Breakout .................................................................... 90 Figure 36 Age of Respondents.................................................................................................................... 90 Figure 37 Age of Respondents – Breakout ................................................................................................. 91 Figure 38 Gender of Respondents............................................................................................................... 91 Figure 39 Gender of Respondents – Breakout ............................................................................................ 92 Figure 40 Region of Residence................................................................................................................... 92 Figure 41 US Regional Population Distribution ......................................................................................... 93 Figure 42 Region – Breakout ...................................................................................................................... 93 Figure 43 Internet Access Point .................................................................................................................. 94 Figure 44 Type of Internet Access.............................................................................................................. 95 Figure 45 Payment Methods of Non-Internet Users ................................................................................... 96 Figure 46 Types of Bills Paid By Telephone, Electronic or Other Automated Methods............................ 97 Figure 47 Types of Bills Paid By Telephone, Electronic or Other Automated Methods - Breakout.......... 97 Figure 48 Percentage of Bills Paid by Different Methods (Mean) ............................................................. 98 Figure 49 Reason for Bills Paid Electronically........................................................................................... 99



Figure 50 Reason for Bills Paid Electronically - Breakout......................................................................... 99 Figure 51 Percentage of Bills Paid Electronically Due to Different Reasons (Mean) .............................. 100 Figure 52 Percentage of Bills Paid Electronically Due to Different Reasons (Mean) – Breakout ........... 100 Figure 53 Pay Bills Electronically or Use Bill Presentment .....................................................................101 Figure 54 How Do You Receive Electronic Bills.................................................................................... 101 Figure 55 Types of Bills Paid Using Bill Presentment ............................................................................. 102 Figure 56 Primary Advantage of Bill Presentment Service ...................................................................... 103 Figure 57 Inhibitors to Using Bill Presentment Service ........................................................................... 103 Figure 58 Frequency of Printing Transaction Documents ........................................................................ 104 Figure 59 Typically Print B&W or Color ................................................................................................. 105 Figure 60 Reason for Printing Copy ......................................................................................................... 105 Figure 61 Aspects of Electronic Transaction Least Satisfied With or Could Be Improved ..................... 108 Figure 62 Aspects of Electronic Transaction Least Satisfied With or Could Be Improved - Breakout ... 108 Figure 63 Plan to Increase or Decrease Number of Bills Paid Electronically .......................................... 109 Figure 64 Plan to Increase or Decrease Number of Bills Paid Electronically - Breakout ........................ 110 Figure 65 Reason for Increasing Number of Bills Paid Electronically..................................................... 110 Figure 66 Reason for Increasing Number of Bills Paid Electronically – Breakout .................................. 111 Figure 67 Reason for Decreasing Number of Bills Paid Electronically ................................................... 111 Figure 68 Reason for Decreasing Number of Bills Paid Electronically – Breakout................................. 112 Figure 69 Financial Services Transactions Conducted Online ................................................................. 113 Figure 70 Loyalty Programs ..................................................................................................................... 114 Figure 71 Loyalty Programs – Breakout................................................................................................... 114 Figure 72 Preferred Method of Contact .................................................................................................... 115 Figure 73 Preferred Method of Contact – Breakout.................................................................................. 116 Figure 74 Type of Hardcopy Preferred ..................................................................................................... 117 Figure 75 Type of Hardcopy Preferred - Breakout ................................................................................... 117 Figure 76 Percentage of Items Received in Mail By Level of Personalization and Usefulness (Mean) .. 118 Figure 77 Percentage of Items Received in Mail By Level of Personalization &

Usefulness (Mean) - Breakout................................................................................................... 118 Figure 78 How Do You Feel About Companies Sending You Hard Copy Direct Mail Without Your

Permission ................................................................................................................................ 119 Figure 79 How Do You Feel About Companies Sending You Hard Copy Direct Mail w/o Your

Permission - Breakout ............................................................................................................... 119 Figure 80 Preferred Types of Email Marketing Messages....................................................................... 120 Figure 81 How Do You Feel About Companies Sending You Email Without Your Permission ............ 120 Figure 82 Level of Comfort Getting Email From a Company You Do Business With ............................ 121 Figure 83 Feelings Regarding Providing Personal Information Online.................................................... 121 Figure 84 Feelings Regarding General Web Advertising Not Targeted To You...................................... 122 Figure 85 Concern Regarding Security of US Postal Service................................................................... 123 Figure 86 Concern Regarding Security of US Postal Service - Breakout................................................. 123 Figure 87 Conditions Under Which You Would Be Concerned Re: Security of US Postal Service........ 124 Figure 88 Conditions Under Which You Would Be Concerned Re: Security of US Postal Service -

Breakout ................................................................................................................................... 124 Figure 89 Do Security Concerns Encourage You To Electronic Viewing and Payment of Bills ............. 125 Figure 90 Do Security Concerns Encourage You To Electronic Viewing and Payment of Bills –

Breakout .................................................................................................................................... 126 Figure 91 Type of Business ...................................................................................................................... 129 Figure 92 Number of Employees at Company.......................................................................................... 129 Figure 93 Survey Respondent Job Titles .................................................................................................. 130 Figure 94 Job Functions............................................................................................................................ 130 Figure 95 Level of Knowledge About Transaction Documents ............................................................... 131



Figure 96 Level of Knowledge About Spending on Transaction Documents .......................................... 131 Figure 97 Primary Market Served............................................................................................................. 132 Figure 98 Number of Statements Generated Per Month........................................................................... 132 Figure 99 Percentages of Recurring Bills and Statements .......................................................................133 Figure 100 Number of Letter-Size Transaction Document Pages Printed per Month .............................. 134 Figure 101 Number of Support Calls Related to Transaction Documents per Month .............................. 135 Figure 102 Average Cost per Customer Support Call .............................................................................. 136 Figure 103 Amount Spent per Year Managing Transaction Documents .................................................. 137 Figure 104 Spending by Category ............................................................................................................ 137 Figure 105 Percentage of Spending with External Service Providers ...................................................... 138 Figure 106 Expected Change In Transaction Print Volume ..................................................................... 139 Figure 107 Expected Change In Transaction Print Volume – Mean Base Year is 2002 .......................... 139 Figure 108 CAP Ventures Market Segmentation ..................................................................................... 140 Figure 109 CAP Ventures U.S. Statement Market by Technology Billions of Impressions .................... 141 Figure 110 Problems with Paper-based Processes .................................................................................... 141 Figure 111 Problems with Paper-based Processes – 2 .............................................................................. 142 Figure 112 Problems with Paper-based Processes – Means ..................................................................... 143 Figure 113 Portion of Transaction Mail that is Paper-based..................................................................... 143 Figure 114 Change in Transaction Documents Measured by Equivalent Images .................................... 144 Figure 115 Importance of Factors for E-Delivery..................................................................................... 145 Figure 116 Importance of Factors for E-Delivery – 2............................................................................... 145 Figure 117 Currently Offering Internet Bill Presentment ......................................................................... 146 Figure 118 Currently Offering Internet Bill Presentment ......................................................................... 147 Figure 119 Year Expected to Provide Internet Bill Presentment .............................................................. 147 Figure 120 Implementation Model Currently Used .................................................................................. 148 Figure 121 Companies You Work With for Consolidation and Presentment Services ............................ 149 Figure 122 Management of Traditional Printing and Internet Bill Presentment....................................... 149 Figure 123 Initial Spending to Make Internet Presentment System Operational...................................... 150 Figure 124 Percentage of Customers that Use/Will Use Internet Bill Presentment.................................. 151 Figure 125 Has E-Bill Presentment Been Adopted as Quickly as Anticipated?....................................... 152 Figure 126 Why Has E-Bill Presentment Not Been Adopted Faster? ...................................................... 153 Figure 127 Parties Associated with Developing Bill Presentment System............................................... 154 Figure 128 ROI Required for Services to be Implemented....................................................................... 155 Figure 129 ROI for Bill Presentment........................................................................................................ 155 Figure 130 Effect of Postage Rate Increase on E-Presentment Plans ....................................................... 156 Figure 131 Comfort Level by Type of Provider ....................................................................................... 157 Figure 132 Comfort Level by Type of Provider – 2 ................................................................................. 159 Figure 133 Use of Digital Color Transaction Printing.............................................................................. 160 Figure 134 Use of Digital Color Transaction Printing.............................................................................. 160 Figure 135 Using Color ............................................................................................................................ 161 Figure 136 More Printing Moves to Color as Price Decreases ................................................................. 162 Figure 137 Inclusion of Marketing Messages in Transaction Documents................................................ 162 Figure 138 Items Used with Transaction Documents ............................................................................... 163 Figure 139 Items Used with Transaction Documents by Annual Spending ............................................. 164 Figure 140 Portion of Transaction Mail Processed by an External Service.............................................. 165 Figure 141 Portion of Transaction Mail Using Letter Mail or Larger ...................................................... 166 Figure 142 Number of Transaction Document Pages Printed at Home.................................................... 166 Figure 143 Consumers and Direct Mail .................................................................................................... 170 Figure 144 Direct Mailer Perceptions of Recipients................................................................................. 171 Figure 145 Respondent’s Responsibility for Functions of DM Campaign............................................... 172 Figure 146 Industry’s Responding............................................................................................................ 173



Figure 147 Number of Employees in Respondent Companies ................................................................. 173 Figure 148 Direct Mail Spending by Company Size ................................................................................ 174 Figure 149 Job Titles for Direct Mail Respondents .................................................................................. 175 Figure 150 Job Titles by Company Size ................................................................................................... 175 Figure 151 Areas of Responsibility .......................................................................................................... 176 Figure 152 Levels Respondent Can Speak To .......................................................................................... 176 Figure 153 2002 Direct Marketing Spending ........................................................................................... 177 Figure 154 2002 Direct Marketing Spending by Company Size .............................................................. 178 Figure 155 Expected Change in Direct Marketing Spending ................................................................... 179 Figure 156 Expected Change in Direct Marketing Spending by Company Size ...................................... 179 Figure 157 Expected Decrease in Direct Marketing Spending for 2003 .................................................. 180 Figure 158 Expected Decrease in Direct Marketing Spending by Company Size.................................... 181 Figure 159 Expected Increase in Direct Marketing Spending in 2003 ..................................................... 182 Figure 160 Expected Increase in Direct Marketing Spending by Company Size ..................................... 183 Figure 161 Total 2002 Spending on Direct Mail ...................................................................................... 183 Figure 162 Total Current Spending on Direct Mail by Company Size..................................................... 184 Figure 163 Expected Change in Direct Mail Spending ............................................................................ 184 Figure 164 Expected Change in Direct Mail Spending on B&W by Company Size................................ 185 Figure 165 Expected Change in Direct Mail Spending on Color by Company Size ................................ 186 Figure 166 2002 Telemarketing Spending................................................................................................ 187 Figure 167 2002 Telemarketing Spending by Company Size .................................................................. 187 Figure 168 2002 Advertising Spending .................................................................................................... 188 Figure 169 2002 Print Advertising Spending by Company Size .............................................................. 188 Figure 170 2002 Advertising Spending by Company Size - 2.................................................................. 189 Figure 171 2002 Other Advertising Spending .......................................................................................... 189 Figure 172 2002 Companies Spending Under $1 Million on Other Advertising ..................................... 190 Figure 173 2002 Companies Spending More than $1 Million on Other Advertising............................... 191 Figure 174 Portion of DM Spending with External Service Providers..................................................... 192 Figure 175 Portion of DM Spending with External Service Providers by Company Size ....................... 192 Figure 176 Portion of DM using Digital Printing ..................................................................................... 193 Figure 177 Portion of DM using Digital Printing by Company Size........................................................ 194 Figure 178 Portion of DM using Digital Printing by Spending ................................................................ 195 Figure 179 Portion of DM using Full Color ............................................................................................. 196 Figure 180 Portion of DM using Full Color by Company Size ................................................................ 196 Figure 181 Portion of DM using Full Color by DM Spending ................................................................. 197 Figure 182 Digitally Printed Direct Marketing Equivalent Images by Technology ................................. 197 Figure 183 DM Marketing Messages in Transaction Documents ............................................................ 198 Figure 184 Major Problems with Current Paper-based DM ..................................................................... 199 Figure 185 Minor Problems with Current Paper-based DM..................................................................... 200 Figure 186 Factors Affecting E-Delivery of DM...................................................................................... 201 Figure 187 Important of Factors in Using Direct Mail ............................................................................. 202 Figure 188 Importance of Cost Effectiveness in Using DM by Company Size ....................................... 203 Figure 189 Importance of Cost Effectiveness of DM by Amount Spent .................................................. 203 Figure 190 Inhibitors to Using DM........................................................................................................... 204 Figure 191 Inhibitors to Using DM – Means............................................................................................ 205 Figure 192 Inhibitor: Lack of CRM Data -- by Spending......................................................................... 205 Figure 193 Inhibitor: Lack of CRM Data -- by Company Size ................................................................ 206 Figure 194 Factors in Producing DM Inside Organization....................................................................... 207 Figure 195 Factors in Producing DM Inside Organization - Means ......................................................... 208 Figure 196 Factors in Producing DM Outside the Organization .............................................................. 209 Figure 197 Factors in Producing DM Outside the Organization - Means ................................................ 209



Figure 198 Outside DM Companies Used ................................................................................................ 210 Figure 199 Management of DM Systems ................................................................................................. 211 Figure 200 Initial Spending to Make Internet Marketing Operational...................................................... 212 Figure 201 Initial Spending to Make Internet Marketing Operational – by Spending on DM ................. 212 Figure 202 Target Timeframe for Recouping Investment ........................................................................ 213 Figure 203 Marketing Campaigns: Coordinated DM and Web ................................................................ 213 Figure 204 Implementation Models Used................................................................................................. 214 Figure 205 Conditions Under Which Consumers Would Be Concerned -

Security of US Postal Service ................................................................................................ 215 Figure 206 What Would Cause a Move to E-Mail or Internet-based DM? .............................................. 215 Figure 207 Portion of Printed DM That Uses or Will Use Inserters or Self Mailers................................ 216 Figure 208 Percentage of DM Pieces (Mail) By Level of Personalization............................................... 217 Figure 209 Methods Preferred by Recipients as Perceived by Direct Marketers ..................................... 217 Figure 210 Methods Preferred as Stated by Consumers ........................................................................... 218 Figure 211 Current Use of Mail Optimization Technologies ................................................................... 218 Figure 212 Attitude Toward Adoption of New Technology..................................................................... 219 Figure 213 Expected Change in Wireless Spending ................................................................................. 220 Figure 214 Interest in Specific Key Topics .............................................................................................. 220 Figure 215 Importance of Different Types of Companies in Developing Strategies................................ 222 Figure 216 Transaction Documents vs. Direct Mail Revenue .................................................................. 226 Figure 217 Respondents by Title .............................................................................................................. 227 Figure 218 Role in Company.................................................................................................................... 227 Figure 219 Respondents by Region .......................................................................................................... 228 Figure 220 Type of Company ................................................................................................................... 228 Figure 221 Type of Print for Pay Provider ............................................................................................... 229 Figure 222 Department Represented......................................................................................................... 229 Figure 223 Number of Employees in the Company.................................................................................. 230 Figure 224 Approximate Annual Capital Equipment Budget................................................................... 231 Figure 225 Approach to Acquiring New Technology............................................................................... 232 Figure 226 Approach to Acquiring New Technology by PFP Segment ................................................... 232 Figure 227 Approach to Acquiring New Technology by Transaction Print Volume – Under $10M....... 233 Figure 228 Approach to Acquiring New Technology by Transaction Print Volume–

Greater than $10M ................................................................................................................. 233 Figure 229 Approach to Acquiring New Technology by Revenue from DM – Under $10M.................. 234 Figure 230 Approach to Acquiring New Technology by Revenue from DM – Greater Than $10M....... 235 Figure 231 Types of Equipment................................................................................................................ 236 Figure 232 Types of Equipment by Type of Company............................................................................. 237 Figure 233 Types of B&W Digital Printers .............................................................................................. 237 Figure 234 Types of Digital Full Color Printers ....................................................................................... 238 Figure 235 Services Provided In-house .................................................................................................... 238 Figure 236 Other Services Offered ........................................................................................................... 240 Figure 237 Total Revenue Transaction Documents.................................................................................. 241 Figure 238 Total Revenue Transaction Documents- 2 ............................................................................. 241 Figure 239 Expected Change in Transaction Document Income by 2005................................................ 241 Figure 240 Expected Decrease in Transaction Document Income by 2005 ............................................. 243 Figure 241 Expected Increase in Transaction Document Income by 2005............................................... 244 Figure 242 Percentage of Revenue from Digital Printing of Transaction Documents - 2003 .................. 244 Figure 243 Percentage of Revenue from Digital Printing of Transaction Documents - 2005 .................. 245 Figure 244 Percentage of Transaction Documents that have Digitally Printed Message ......................... 245 Figure 245 Expected Change in Production of Digitally Printed Messages in Transaction

Documents - 2005 ................................................................................................................... 246



Figure 246 Total Revenue for Services Related to Direct Mail – Under $10M ....................................... 247 Figure 247 Total Revenue for Services Related to Direct Mail – Greater Than $10M ............................ 247 Figure 248 Expected Change in Direct Mail Income by 2005.................................................................. 248 Figure 249 Comparison of Change in Transaction Document vs. Direct Mail Income by 2005.............. 248 Figure 250 Expected Decrease in Direct Mail Income by 2005 ............................................................... 249 Figure 251 Expected Increase in Direct Mail Income by 2005 ................................................................ 250 Figure 252 Percent of Total Revenue in 2005 by Category...................................................................... 250 Figure 253 Percent of Total Revenue from DM that is Digital Printing................................................... 251 Figure 254 Percent of DM Digital Printing by Category.......................................................................... 252 Figure 255 Percent of DM Digital Printing with Variable Data ............................................................... 252 Figure 256 Mean Percent of DM Digital Printing with Variable Data ..................................................... 253 Figure 257 Expected Change in Use of Each Type of Variable Data....................................................... 254 Figure 258 Most Profitable DM Jobs........................................................................................................ 254 Figure 259 Equipment Investment Plans ................................................................................................. 255 Figure 260 Software Investment Plans ..................................................................................................... 256 Figure 261 Primary Driver of Capital Investment Plans........................................................................... 257 Figure 262 Trend Statements .................................................................................................................... 259 Figure 263 Technology Use...................................................................................................................... 261 Figure 264 Mean Responses on Technology Use ..................................................................................... 262