Intelligent Inserting

Note:
At the time this story was written, Baronet Litho was operating out of Johnstown, NY. The company is no longer there. However, the concept of intelligent inserting is an interesting one and gives much insight as to how powerful direct mailing can be. This is why I have chosen to post this story.


What is an Automatic Intelligent Inserter? Sounds like something George Jetson would have used while working at Spacely Sprockets, in a world that exists only in the very far future. However, the Automatic Intelligent Inserter that Baronet Litho has been using for the past six months is very much a reality in the here and now. It is a new mailing device that can “see” and determine what letters, forms, charts, etc., will go in each individual envelope and who those envelopes will be delivered to. In addition to the new mailing system, the company is also using five new Hitachi DDP 70 Digital Laser Printers for materials that require variable data or personalized messages. With the arrival of these new systems also comes the potential for growth and more employment opportunities with Baronet Litho as well as the Johnstown Post Office.

Hitachi had planned to debut the Digital Laser Printers for Variable Data back on September 11, 2001. For obvious reasons, that debut did not take place. Consequently, there are few companies that have obtained the printers since. Baronet Litho is one of a handful of companies in New York State that have these state of the art printers.

The Digital Printers produce sharp, fine images and can print on one or both sides of a piece of paper in a single pass through the machine. When using one side of the paper the printers can output 4,000 sheets per hour. When doing two sided printing, jobs run at approximately 2,400 sheets per hour.

According to Doug Hart, the president of Baronet Litho, “The printers are driven by Objectif Lun software. This software allows the programmers to build a base design form and then import the customer mail file and variable imprint information. Once compiled and processed through Postal software, the data is sent to the printers through a network configuration to the printer. “

The completed forms are then delivered to the Automatic Intelligent Mail Inserter. The process begins with a flat, pre-printed sheet from the laser printers. The sheets pass under a camera that is called an Optical Character Recorder, or OCR. This tells the computer how many sheets to insert and what name to put on the envelope. The sheets are then automatically folded to fit in the envelope, therefore bypassing a separate operation altogether. The customer can also have additional pieces of mail put in the envelope at the same time, before the envelope is sealed. After sealing the envelope the inserter then applies a postage stamp and the mail is directed to the actual postal trays that are pre-sorted for the USPS. Using this method, approximately 5,500 pieces of mail can be produced per hour.

Obviously these new machines have the potential to expand the ability to do a job. Mark Harnichar, the Mailing Specialist for Baronet Litho feels, “ in my opinion, e-mail will never threaten regular mail. The new system will save the customer time and money and, at the same time, reach thousands of existing and future customers “.

The bottom line for any business, of course, would be the profits that could be achieved. Brian Smith, Marketing Director for Baronet Litho, believes the potential gain for his printing customers could be very attractive. Smith states that potential customers respond to personalized mail more often than general mass mailing. Usually a mass mailing would generate approximately 2% in leads for the company. Personalized mailings generate approximately 10% in leads. Therefore, a company could send less personalized mail, therefore reducing the cost of printing and postal fees, and still generate more leads than if the same company had done a mass mailing. Also, personalized mail increases an average order for products by 25%. All of this could raise the company’s profits dramatically. Smith feels “ the method represents a potential to improve relations with current customers and to generate future customers, which means more business for the company using the system. “

The potential for more jobs being generated at Baronet Litho is also great and would be beneficial to the Fulton County area. Already the company has had to hire five new employees and sees the need for additional employment opportunities in the future. The increase in volume of jobs will result in an increase of employees. Along with the increase in employees at Baronet Litho, the Johnstown Post Office will benefit as well. More mail going to the post office will result in more work for the postal workers, which could result in more employment opportunities there.

Area business people see the advantages of personalized mailings and direct mailing. Jim Murdico, Advertising Manager for R&Q of Gloversville estimates that his company uses approximately 12% of their advertising budget on direct mailing. Although R&Q does not do it’s printing at BL, they do use Baronet Litho as a mailing house and Murdico says that he is very pleased with their services. Murdico adds that R&Q used to use an out of town company, but preferred using someone locally, thus creating the relationship with Baronet Litho. “ Direct mail is very very important to us “ states Murdico, “ it is a vital part of advertising “.

With the arrival of the Hitachi Printers and the Pitney Bowes Automatic Intelligent Inserter, Baronet Litho may be well on their way to a very bright and profitable future. Whether that future will bring them to George Jetson’s world at Spacely Sprockets, no one knows, but it should help in the future of the present day people of Fulton County and the surrounding areas. The quality of printing Baronet Litho is now capable of could result in an increase of professional businesses using the area and increasing the quality of life for Fulton County residents.