Background

The insurance company initially lacked the technology and manufacturing capabilities to offer customer preferences. Their in-house systems were antiquated, focusing solely on print options without considering digital solutions. Customers were asking for digital communication options, which the client was unable to provide. They turned to Alleon to help find a solution.

Transformation

While taking the organization through the Alleon Four-Step Process, we discovered that to meet their customer preferences and optimize print output, they needed to upgrade their technology platform. This shift enabled them to offer both digital and print solutions, leading to cost savings and increased manufacturing efficiency. New customers defaulted to digital communications with an option for print, reducing print volume by 30% all while improving the customer experience. This transformation also involved a sales process retraining. With leadership support, the transition brought the company into the 21st century.

Takeaways

• Meeting Customer Preferences: Addressing customer needs can lead to cost savings and enhanced customer experience.
• Modernizing Technology: Upgrading technology and processes is essential for aligning with customer expectations and staying competitive.
• Leadership Support: Having leadership support is crucial, and being open to new ways of thinking is vital.

Redefining how you manage your print and mail operations over time is crucial. The story of a Human Capital Management (HCM) company providing payroll services to its customers  illustrates the importance of considering alternative approaches.

Background

The HCM company came to Alleon with plans to invest heavily in new equipment. However, leadership was concerned they weren’t approaching this challenge correctly. They questioned if updating their in-house fleet was the only way to achieve objectives or if there were alternative methods. After an in-depth assessment by Alleon Group, it was revealed that their current high fixed-cost model was unsustainable due to declining demand.

Transformation

Alleon recommended moving to a variable cost model by outsourcing the print and mail requirements to a third-party provider. We also laid out a path for the client to divest operations and move out of the print and mail business. To that point, the HCM hadn’t analyzed their business this way – examining demand vs. capacity and the total cost of ownership vs. revenue. This approach reduced overall costs, provided better capabilities and technology, and aligned their operations with demand.

Takeaways

– Flexible Cost Model: Shifting to a variable cost model can provide greater flexibility and cost savings.

– Aligning Demand and Capacity: It’s essential to align demand with capacity and costs with revenue objectives.

– Market Solutions: Being open to market solutions can reveal more effective ways to address business challenges.

Optimizing expenses is vital for enhancing efficiency and reducing costs. One of our clients, an investment management firm, highlights the importance of reviewing distribution and postage costs.

Background

The investment firm was focused on the costs for printed output, while not paying much attention to the bigger cost, postage. Postage costs, often three to five times greater than print costs, were not optimized. They turned to Alleon to help them reinvent how to look at their print and mail business.

Transformation

In the end, not much in the print side of the business was changed. The investment firm’s internal processes were optimized and working as needed. However, by taking them through the Alleon Four-Step Process, it was discovered that the firm could update their postage strategy. By moving to a distribute and print model, the firm impacted their postage expenses by moving the initial point of entry in the postal system closer to their recipients, thus reducing delivery and postage costs, leading to significant savings.

Takeaways

– Postage Optimization: Optimizing postage can result in substantial cost reductions, significantly outpacing printing costs.

– Review Distribution Models: Distribution models should be regularly reviewed and updated to ensure efficiency.

– Postage Strategy: Don’t let postage be an afterthought.

Embracing cross-promotion can amplify the impact of your communication and open additional revenue streams. Working with Alleon, a regional consumer and business bank is successfully implementing cross-promotions that not only enhances their print and digital communications, but provides additional revenue.

Background

The bank’s original request was to find ways to help increase their print and mail margins and offset costs. Taking them through the Alleon Group’s Four-Step Process, it was realized that from a production and postage standpoint, they were well optimized. However, we helped the bank understand the revenue possibilities by utilizing cross-promotion on customer-facing communications of other services they offered.

Transformation

With Alleon’s guidance, the bank embraced cross-promotion by including advertisements for bank services within employee checks (whether printed or electronic). This strategy opened a completely new revenue stream. By including marketing on their print and digital outputs, The bank is forecasted to generate additional, unforeseen revenue.

Takeaways

– Additional Revenue: Cross-promotion can generate additional revenue and increase margins.

– Plan Cross-Promotion: Plan effective cross-promotion of internal complimentary services.

– Partner with Vendors: Partner with outside providers that offer complementary services to enhance the value of your communications.