Defining What MSPs Do —Sherburne

OVER THE last several 
 weeks, I have had a number of conversations with companies formerly known as printers that have transitioned, or are in the process of transitioning, to so-called marketing services providers (MSPs). What I have found most interesting is the business diversity among these companies, and it made me wonder if there is actually a definition of what an MSP is, or even if that is the right term.

Common MSP Attributes

There are a few commonalities, though, that should be highlighted. These companies:

• Still print, for the most part, but most have taken the word "print" out of their names and off of their Websites;

• Are calling on marketing professionals, advertising agencies and line of business managers;

• Are offering "marketing services" at some level, most commonly direct marketing with output going to multiple channels, including personalized URLs, storefronts, collateral management services;

• May offer one-time, single-transaction products, such as mailing a postcard with a personalized URL, but more frequently offer programmatic services that extend over a longer period of time and tend to lock in the customer;

• Have added data and IT expertise to their staffs;

• Are escaping the "price per piece" question relative to printed components of the project, especially in programmatic environments;

• Begin a sales engagement with a discovery process that does not involve showing sample pitch books or talking about presses; rather, the first sales call is about listening to the customer's business situation, pain points, goals and objectives, and then returning on a second call with some proposed actions;

• Have found it difficult to transition traditional sales reps to the new model of "solutions selling;"

• Use a team approach, often with a traditional print rep being the "finder" who just identifies the opportunity, followed by a specialist team seeking business process 
discussions at the C-Level;

• Experimenting at some level with social media;

• Offer customer self-service via the Web and customer access to a wide range of data, including tracking of campaigns, the ability to refine and modify campaigns in real time, online, and more; and

• Walk the Talk: That is, they are using the tools and techniques they are selling to the customer to promote their own companies, with documented case studies they can use in their sales efforts.

These "new" printing companies typically offer a range of services that can scale with company size and need. Many have focused on specific vertical markets, such as healthcare or financial services, and have built knowledge and expertise around those specific industries; others have focused on more horizontal applications such as collateral management. Some do both.

Many companies have rebranded themselves, either taking the word "print" out of their name, or coming up with a completely new name and tag line. One company I spoke with, which has 40˝ presses, as well as a color digital press, describes itself as two divisions: a print division that delivers print and associated services, and an innovation division that delivers marketing logistics and effectiveness.

One firm told me that taking "print" out of the name was critical in order to gain appointments at the C-Level; otherwise they get sent down the hall to procurement.

Are Making More Money

The other commonality I found among these companies is the fact that they are making money, which goes against the grain of what is happening in the industry at large. They are gaining higher margins on the services around print, and often drive more volume to their presses (digital and offset) than they would have gotten as a "normal" printer.

For example, one firm explained that a customer approached them looking for a fulfillment solution, which bills at about $50,000 annually. But, as a result of creating the fulfillment solution, they are getting an incremental $250,000 in print revenue annually from this customer! So, in the scope of things, the revenue from the fulfillment solution is "small potatoes," but they would not have developed this $300,000 annual revenue client without it.

Making this transition requires investments, of course, and, especially in times like this, it can be hard to see your way to making those investments.

But there are alternatives. One company I spoke with has offset presses only, but has arranged for a number of partners to provide various services to avoid the need to make the investments, including a neighboring digital printer with Xerox iGen presses to produce digital work, and an expert strategy partner they can bring in to discuss high-level marketing strategy issues as required. But they did decide to invest in the customer-facing Web front end, believing it was important to have control over that interface.

Another successful firm has chosen to have the vast majority of resources in-house, including data and IT services, printing, agency services, fulfillment and more.

The bottom line is there are many ways to approach this necessary transition as the demand for print continues to fall. Each individual company should think long and hard about their own core competencies, their ability to invest and their willingness to work through what can be a difficult transition. They should also reach out to companies that are making the transition successfully; some will be willing to share thoughts and best practices, and some will not.

Not everything you try will work, and there will be many bumps on the way. But from what I am hearing, there is not much alternative for companies that want to be successful over the long term as our market continues to change dramatically.

I personally am not happy with the term "marketing services provider," but have struggled to come up with an alternative. A couple of phrases I have heard that describe the category better are "marketing automation services provider" and a "marketing communications company that specializes in personalized communications." While neither translates well to the three-letter acronyms we love in this industry, both are good "elevator pitch" descriptions that can get a good conversation going. PI

—Cary Sherburne

About the Author
Cary Sherburne is a well-known author, journalist and marketing consultant for the printing and publishing industries. She was recognized as a 2009 Woman of Distinction and was awarded the 2009 Thomas McMillan Award for excellence in 
journalism. She can be reached at Cary@SherburneAssociates.com.