R. Gordon Talley Communication for Institutional Advancement Conference 2001 © 2001 R. Gordon...

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.comAISNE Conference 2001© 2001 R. Gordon Talley

The Tailored Case

AISNE Conference2001

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

WHY?

Paradigm Shift

95/5

Moves Management

Hydrodynamics

Cost Analysis

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

Paradigm Shift:The Old Paradigm

ConceptFlagship PublicationAudienceEditorialFormatPrinting

Journalism

Alumni Magazine

Mass

Feature Story

Bound or stitched

Offset

WHY?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

Paradigm Shift: The New Paradigm

ConceptFlagship PublicationAudienceEditorialFormatPrinting

Marketing

Web Site

Targeted

Interactive

?????

?????

WHY?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

95/5

The Gift Pyramid

Gift Level

$100,000 +

$10,000–$100,000

Less than $10,000

WHY?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

95/5

The New Pyramid

WHY?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

95/5

Connecticut College 110% Goal 77/1

90/3

10/97

$100,000+

$10,000+

WHY?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

Moves Management

Personalization of Relationship

“Natural Partner”

Tracking Contacts

Moments of Engagement

WHY?

Message

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

Hydrodynamics

Campaign Fluidity

Lagging Goals

Success

Initiatives and Opportunities

Leadership Changes

WHY?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

Cost Analysis

Unit CostWaste

Payback, or Cost per SalePODi AnalysesValue Proposition“Pull” MarketingUnderlying Market ForcesAdobe Presentation at DRUPA:

Benefits of Personalization

Whirlpool Case Study

WHY?

Graph Expo

Chicago

Sept. 24, 2000

Payback formulaPayback formula

Traditional view: cost per piece That’s only appropriate if everything

else is constant

The formula: Expected value = response rate

x close rate x $ per sale

Evaluate payback by:Expected value / cost per piece

Graph Expo

Chicago

Sept. 24, 2000

Example: Example: traditional payback traditional payback

modelmodel Expected value = response rate

x close rate x $ per sale

Example: 2% response, 10% of those buy, average sale $500:

.02 x .10 x $500 = $1 of revenue per mailer.If cost, mailed, is 50c, payback is 2:1.

Graph Expo

Chicago

Sept. 24, 2000

If your response rate If your response rate never varies:never varies:

The print buyer can only improve payback

by reducing cost per piece.

Examples: $1 expected value / 50c = 2:1 payback$1 expected value / 40c = 2.5:1 payback$1 expected value / 30c = 3.3:1 payback

So that’s what the buyer will hammer on:cost per piece.

Graph Expo

Chicago

Sept. 24, 2000

The fundamentalThe fundamentalvalue propositionvalue proposition

of personalized print is:of personalized print is:

it increases the valueit increases the valueof the printed pageof the printed page

as a purposefulas a purposefulcommunication tool.communication tool.

Graph Expo

Chicago

Sept. 24, 2000

Pull MarketingPull Marketing

Driven by: customer Stage in the relationship:

customers have already “raised their hand”

Value propositions:– More cost-efficient fulfillment– More targeted:

“More of what they asked for,less of what they didn’t want”

Graph Expo

Chicago

Sept. 24, 2000

The underlyingThe underlyingmarketing forcesmarketing forces

“Personalize everything” The push for “share of attention” The death of dependable brand

loyalty The birth of “customer relationship”

and “one-to-one” marketing Peppers & Rogers:

– Identify– Communicate– Differentiate

Graph Expo

Chicago

Sept. 24, 2000

Controlling the sales Controlling the sales processprocess

This is not a “print buyer” sale:it’s a sale to a marketing executive

If you’re walking on cement, you’re in the wrong department. Look for carpet.

Longer sales cycle

Earlier involvement – perhaps even at campaign conception

“These aren’t print jobs – they’re annuities”

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

HOW?

On-Demand PrintingCharacteristicsExamples

What You NeedSoftwareHardwareWorkflow

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

On-Demand Printing: Characteristics

Bindery

Press

Workflow

Desktop Publishing

Publish and Subscribe

HOW?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

On-Demand Printing:Examples

Transitional PeriodCombines Preprint and On-Demand

Buckingham Browne & Nichols

Boston Symphony Orchestra

University of Rochester Medical Center

Tuck School

HOW?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

What You Need:Software

Page LayoutPageMakerQuarkInDesign

Word ProcessingMicrosoft Word

HOW?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

What You Need:Hardware

PrinterDesktop

Inkjet vs. Laser

Color Laser

DigitalDocuTech/DocuColor

HOW?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

What You Need:Hardware

BinderyIn-house

Wire-O

Digital

HOW?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

What You Need:Workflow

Up-to-Date Information

Approval ProceduresPassword Security

or Gatekeeper

“Message Delivery System”Component Design

(Parts Catalogue Model)

HOW?

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

PROBLEMS

EditorialComplexity

PersonnelUse of Time

Unfamiliar Roles

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

Editorial

ComplexityLevel of Detail

Anticipate Donor Interest

Gift Opportunities Orientation(Donor Engagement)

Component Model

PROBLEMS

Graph Expo

Chicago

Sept. 24, 2000But:But:

It takes work to set up the data link It takes work to “program the page”

(create the job and its logic rules)and test how the data selects content

So it makes a lot more sense to look for personalization projects, not one-off jobs

Ultimately, automation is where the real payback will be

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

Personnel

Use of TimeRe-allocation of Communications Effort

Increased Presence in Development Team

Unfamiliar RolesMajor Gifts Officers

Increased Responsibility for Donor Communications

PROBLEMS

Graph Expo

Chicago

Sept. 24, 2000

Adding valueAdding valuein the face of trends in the face of trends that will change our that will change our

industryindustryManage scopeChoose a task that will create

enough value to be worth everyone’s investment

Get movingMaintain momentumStay flexible as things change.

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

The Future: “Next Step” Scenarios

EditorialPublish and Subscribe

Information Management

Printing and DeliveryTrue DocuTech

Web

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

Editorial

Publish and Subscribe“Merge” DocumentPPML Software

Information ManagementDigital Media ManagementInternet/Intranet

LiveLink

FUTURE

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

Printing and Delivery

True DocuTechLimited-Run Bound Case Statements

Web DeliveryPDF File Generation

Donor-Dedicated FTP Sites

Intranet Information Systems: LiveLink

FUTURE

AISNE Conference 2001© 2001 R. Gordon Talley

R. Gordon TalleyCommunication for Institutional Advancement

www.rgtalley.com

The Tailored Case

Old Transition FutureMessage

Print

Bindery

Editorial

Distribution

Personnel

Overview and Complete Goal Set

Offset

Saddle or Perfect Bound

Fixed

Mail and In Person

Communications Team or Consultant

Overview and Single Goal

Offset and Desktop

Wire-O

Components

In Person

Communications Team and Major Gifts Officers

Donor-Requested Information

On-Demand or Web

On-Demand or Web

Publish and Subscribe

In Person and WebMajor Gifts Officers

FUTURE