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
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