The cost-of-living crisis is having an effect on many industries across the UK and the print industry is not exempt from this, with economic uncertainty, the rise in energy bills and disruption to the supply chains. How can the print industry respond to the cost-of-living crisis and remain strong?

The Data & Marketing Association’s (DMA) Print Council specialist, Neal Dodd, managing director of The Letterbox Consultancy, discusses the balance between cost effective strategies and ensuring that customer and client service remains efficient.

With the global pandemic and utility bills on the rise from economic turbulence, it has been an extremely challenging few years and now we are experiencing a cost-of-living crisis, high inflation, and cost increases for European imports.

Like most channels, print has been affected, with paper prices soaring over the previous 18 months – quite possibly the most significant factor for users of print media in recent times, causing real issues for clients and their agencies to contend with.

And yet, despite these challenges, the channel continues to welcome new clients – often tech-based businesses – who have seen the value of print media within their advertising plans.

The rise of JICMAIL and the pushback against last-click attribution are helping more people understand how print can offer exclusive benefits. It speaks volumes that we are seeing so many new users of door drop and mail.

How will businesses respond in 2023?

As we move through 2023 and beyond, new, and existing clients – and their suppliers – will continue to try to come to terms with the challenges of the wider market.

They will do this in two ways; making changes to their distribution and material usage, or reducing their use of the channel altogether.

Those making changes to the production and distribution will typically do so by changing paper specifications and reducing pagination. Catalogue companies might reduce the size of their printed item and use print to push online activity. Similarly, more costly die-cut or multi-page door drops might become single-sheet leaflets.

This decision must be made with consideration for effectiveness. Clients and their suppliers should accurately assess how any production changes might affect results and whether it is worth making these key changes during the current climate or to whether it is safer to ride out the storm.

In our recent experience, retailers, regional authorities and FMCG companies were actively testing these changes throughout 2022 and now also into 2023. However charities, in particular, seem to be holding firm with the envelope, letter, lift and response device – something to look out for this year to see if this changes.

I would not be surprised to see a lot of testing in the market over 2023 and for some clients to return to the more costly item, having discovered that this offers a better return on their investment.

Those looking to simplify their item and drive people online have been aided by the rise of QR codes. It is commonplace to see QR codes on door drop and mail through our doors. Anything that can ease the process of guiding consumers online and ensuring a considered customer journey will further encourage clients to reduce content and size.

There will undoubtedly be clients who reduce their use of print media, and it should be expected to see some users of the channel depart.

Much like those testing a different format, the key for clients reducing their volumes is understanding how this has affected business results.

Tough times ahead but the outlook is positive.

Despite many challenges, I believe 2022 was positive for door drop and mail – new clients, further evidence of their value to businesses, and increasing volumes for many key sectors.

There will continue to be some turbulence in 2023. Clients will adapt their work accordingly, so the onus will be on suppliers of door drop and mail to help justify the use of the channel, demonstrating the actual effects of those changes.

However, considering the reach that door drop and mail offers, the physical presence in the home, and the commercial actions that it brings, can this tactility and uniqueness be found elsewhere? I am not convinced.