IWCO Direct Agrees To Acquire Transcontinental Direct US Operations

IWCO Direct (http://www.iwco.com) entered into a definitive purchase agreement to acquire Transcontinental Direct’s US operations, a high-volume direct mail organization with a network of facilities throughout the United States. Transcontinental Direct’s parent company, Transcontinental (http://www.transcontinental.com), is the largest printer in Canada and Mexico and Canada’s leading consumer magazine publisher. This acquisition positions IWCO Direct’s platform as an unrivalled solution in the industry for the optimization, execution, and delivery of direct marketing campaigns. Terms of the deal are not yet disclosed; the transaction is expected to close in the spring of 2010.

“We are pleased to combine the strengths of these organizations to provide a robust national total package footprint for our customers seeking innovative and cost effective programs for customer acquisition, loyalty and engagement programs anchored by powerful strategy development,” said Jim Andersen, IWCO Direct president and CEO. “The IWCO Direct team is looking forward to working with our new colleagues from Transcontinental to create exceptional direct marketing programs for our customers.”  

“Combining the production technology and world-class manufacturing techniques and processes of Transcontinental Direct’s US operations with IWCO Direct’s exceptional campaign execution will provide tremendous opportunities for our customers and employees,” said François Olivier, Transcontinental’s President and Chief Executive Officer.

Long-Term Brand Relationships Sacrificed For Short Term Efficiency

For many of us, gift registries no longer provide the personal experience they once did as technology and self-service have replaced true customer service.  A Mystery Shopping Study of Gift Registries conducted by the e-tailing group (http://www.e-tailing.com) in 4Q '09 revealed that today merchants often opt for self-service models where customers drive the experience and service levels vary from a supporting cast to accessible only upon request.

Unfortunately such cost-effective solutions may fail to connect the customer to the brand and not take advantage of this important life experience to make a lasting impression.  "Merchants must weigh these options to determine the right mix of technology, resources, branding, and service to ensure that they present their brand in its best light to garner the greatest short-term dollars yet still make a lasting impact on each shopper," emphasizes Lauren Freedman, President of the e-tailing group.

By exploring the relationship between the store and the online world across a series of category verticals including the wedding (58%), baby (27%), and general gift (15%) sectors, the e-tailing group analyzed available consumer choices for building and buying from registries noting the variances in the experiences.

Mystery Shoppers tested 26 registries by tracking Amazon online only and visiting 25 retail stores to gain the consumer perspective by participating in a multi-channel registry experience with a combination of channels involved for research, setup, editing, and shopping.  How merchants approach registry execution and subsequent communication were also tracked with best practices throughout the process recorded.

Registry initiation was available both online and in-store for 76% of the 25 merchants with a store channel; none of these merchants limited signup to the store channel.  Self-service and cost containment factors were clearly evident as 27% of these merchants offered registration exclusively online,

likely due to resource issues. Informational  kiosks were found in 79% of the stores, all of which utilize them for customers to access and print registries.

However, registry setup and subsequent revisions were a secondary option offered by 60% with just under half (47%) enabling the registrant to enter their initial information or the shopper to access the Internet for order placement.

The placement of registries within the retail store was split with 42% providing a dedicated, signed area vs. 58% handling registry functions at a generic register.  Only one-third of these retailers had dedicated registry specialists, instead a general cashier (68%) was apt to provide assistance.  The role of the associate ran the gamut from entering initial information into the system (63%) to assisting customers with self-service registration (79%) to non-involvement in the self-service process (32%).  As merchants try to do more with less, multi-tasking was pervasive, even in this area as 23% of associates were also focused elsewhere while assisting with registry functions.

Although changing dynamics and continual shifting in our culture to a self-service world can be seen in gift registries, some merchants do deserve accolades for delivering notable customer experiences.  The following table lists the top merchants who made extra efforts in-store and/or online.  A top in-store experience often included merchant efforts to either truly personalize the process for the registrant through dedicated registry specialists who were exceedingly knowledgeable and helpful or efforts to make the registry process as streamlined and flawless as possible.  A top online registry and shopping experience entailed compelling merchandising, helpful guides and checklists, as well as branding messages that touted registry features and benefits.

Top In-Store Experiences – Bed Bath & Beyond, Bloomingdale’s, Buy Buy Baby, Giggle and JCPenny.

Top Online Registry & Shopping Experience – Amazon, Babies ‘R’ Us, Bed Bath & Beyond, giggle and JCPenny.