Companies (and most outsource print and mail providers) tend to focus on cost savings as the driving force behind shifting an in-house print operation to an outsource service provider. While cost is always a factor, the real benefit of entrusting the production and distribution of business documents to an outsourcing partner is access to knowledge and technologies that would be otherwise unavailable.
“I think companies that look at outsourcing their print and mail operations solely to trim expenses are missing an important part of the big picture,” says Bill Redman, Shelton Connect Executive VP, “Sure, we can help companies eliminate expenses for equipment, maintenance, consumables, and supplies. But we combine a downturn in cost with an uptick in value. Not everyone sees that at first.”
Don’t Overlook the Value of Improved Communications
The increase in value Bill Redman mentions can come in many forms. Examples include color printing, integrated charts and graphs, embedded targeted marketing and informational messages, and multi-channel distribution to name just a few.
Along with the benefits afforded by state-of-the-art document processing methods, companies that outsource their document operations gain access to customer communication professionals. These individuals are current with industry trends, intimately familiar with postal rates and regulations, and are skilled at important tasks like document design, data security, and cost-effective document processing workflows.
“Organizations that just want to talk to us about cost savings are often operating their print centers with systems that are several years behind the solutions we use to process our client’s business documents. They haven’t invested the money necessary to upgrade their equipment, software, and employee skill sets. That means they are missing out on opportunities to improve their business operations and enhance the customer experience through their outbound communications. They are limited by what their in-house systems can do. Turning the work over to us can dramatically change the way they connect with their customers,” says Redman.
Outsourcing will definitely cut some expenses. Companies can rid themselves of equipment leases, save money spent on consumables like ink and paper, and strike software license fees from the balance sheet. The financial impact of turning document production over to an outside vendor should always play a part in an outsourcing decision, but the analysis shouldn’t be confined to the accounting department.
Documents Affect the Customer Experience
The real value of outsourcing is in the additional capabilities document service providers like Shelton Connect bring to the table. We can help our clients respond to their customer’s requests for digital document delivery, online document retrieval, or digital payments. Our document designers can add elements to your documents that present information clearly, cutting down on the number of calls your customer support representatives must field every month. We can boost your upsell/cross sell/customer retention performance by embedding data-driven offers and messages in highly read documents like bills and statements.
Companies that work with document service providers who add value and provide business benefits turn sunk costs into revenue-adding or customer relationship-building assets. In the most favorable arrangements, the outsource vendors and their clients are concentrating on the same thing-achieving the client’s business objectives. The goals might include improving customer relationships, being more competitive in the marketplace, streamlining business operations, or many other business objectives. Cost savings are frequently a welcome bonus, but they aren’t the most compelling factor.
The best way to approach the outsourcing question is to list the business objectives you want to accomplish. Then consider the state of your in-house document operation. Can your internal departments create the physical and digital documents, along with the controls and processes necessary to produce the desired result? Can the in-house operation deliver on your vision without a large cash infusion?
If the answers are no, start looking for a print and mail service provider who will work with you to achieve your business goals. You will be happier with the results if you insist on partnering with a vendor that can ensure your documents contribute to your overall objectives and then examine cost savings. Not the other way around.