Digital Adoption: Measuring a Fragile Future for Printed Transactional Communications

New Research Sets Benchmarks in the Shift to Digital Communications

One of the key objectives of Treeline Research’s 2024 Paper Suppression Study was to examine the state of customer communications—specifically monthly transactional bills and statements of the financial services industry—from a fresh perspective. Instead of the asking meaningless questions like, “What percentage of your bills and statements arrive by mail versus digitally?” we need to be asking new questions that truly reflect the current landscape of customer communications. By establishing new benchmarks, we can better understand the marketplace and track the shift from paper-based communications to digital experiences. These insights are particularly relevant for service providers and vendors looking to make data-driven decisions that align with modern customer expectations.

There are three essential metrics that we believe will be closely monitored as businesses transition from paper to digital: the number of customers adopting digital as their preferred method of communication, the number of companies prioritizing digital communications, and the overall volume of communications by delivery method. These benchmarks, drawn from Treeline Research’s 2024 Paper Suppression Study, provide critical insight into the evolving needs of consumers and the ways businesses must adapt, especially those who currently derive a significant portion of their revenues from print and mail activities.

Why It Matters

Digital adoption rates and volumes are poised to become some of the most important metrics in customer communications. Companies are increasingly focused on efficiency gains, cost reductions, and enhancing customer experience—goals that are often intertwined with digital transformation efforts. This shift is also driven by advancements in AI, which streamline digital communications, and corporate sustainability goals that encourage the reduction of paper usage.

While printed mail will continue to be available for certain consumers and regulatory reasons, the race to achieve digital adoption rates exceeding 90% will define the customer communications landscape through the end of this decade. For companies, digital is not just an alternative; it is the future of communications, with printed mail gradually fading into the background as it has in other parts of the world.?

However, even as digital adoption increases, it’s important to focus on what remains: the printed and mailed communications that continue to serve as vital touchpoints for many consumers. This segment, though shrinking, remains essential for those involved in print and mail production and delivery. Nevertheless, it is fragile and increasingly vulnerable to disruption as new digital technologies emerge. Navigating this shift will be challenging for those that fail to innovate. ?

Any significant shift in this percentage could have a profound impact on print and mail volumes, reshaping industries that depend on physical communication.

Digital Preference

Approximately 70% of customers prefer to receive and engage digitally with their service providers. This figure has steadily increased over the years, fluctuating slightly between 65% and 73% depending on the source. For many companies, this 70% benchmark marks a tipping point, where digital communication becomes the default rather than the exception. Any significant shift in this percentage could have a profound impact on print and mail volumes, reshaping industries that depend on physical communication.

Understanding why customers prefer digital over print is crucial for businesses aiming to improve their digital adoption rates. Convenience, speed, and accessibility are often cited as primary factors driving this preference. Companies that cater to these needs are likely to see even higher rates of digital engagement.

Business Goals

Approximately 80% of businesses have a formal paper suppression strategy or a goal to significantly reduce or eliminate paper-based communications. Some aim for as close to 100% digital as regulations allow, while others focus on balancing consumer preferences with compliance needs. This shift is part of a broader trend where businesses are investing in digital platforms, automation, and new communication technologies to enhance customer experience, reduce operational costs, and meet environmental sustainability goals.

Many companies view the next 3 to 5 years as critical for driving digital adoption and fully transitioning away from paper-based systems. This shift will require not only technological investment, but new ways of approaching the market opportunity, and efforts to educate consumers and ensure smooth transitions across communication channels.

Digital Dominance

Today, 90% of customer communications are digital, with only 10% still relying on printed and mailed formats. This stark contrast highlights how far the industry has come in embracing digital-first strategies. The rise of mobile apps, email, SMS, and web portals has made digital the default choice for the vast majority of customers.

However, businesses aren’t just focused on transitioning existing customers to digital. They are also exploring new ways to engage through digital channels, such as personalized messaging and interactive content. These innovations are putting additional pressure on print and mail volumes, signaling that the future of customer communications will be even more digitally focused. As digital tools and experiences evolve, they will continue to shape customer expectations and redefine what “effective communication” means.

Setting the Standard

Treeline Research will continue to monitor these metrics closely, providing regular updates on the state of digital adoption and paper suppression. We will track how different industries, applications, and methods transition to digital and how this shift impacts both the volume and value of communications across sectors. Our goal is to provide actionable insights for businesses looking to effectively navigate the future of customer communications.

Whether you are a service provider, vendor, or end-user, the 70%, 80% and 90% benchmarks serve as key indicators of the changing landscape. Understanding them will allow you to adapt and thrive in a rapidly evolving market.

Contact Treeline Research, LLC

For more information about Treeline Research, our 2024 Paper Suppression Study, and upcoming research on Healthcare Communications, please visit our website at www.treelinepress.com or email info@treelinepress.com.

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