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R. Gordon Talley
Communication
for Institutional Advancement
The Tailored Case
AISNE Conference
2001
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
WHY?
Paradigm Shift
95/5
Moves Management
Hydrodynamics
Cost Analysis
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
WHY?
for Institutional Advancement
Paradigm Shift:
The Old Paradigm
Concept
Flagship Publication
Audience
Editorial
Format
Printing
AISNE Conference 2001
© 2001 R. Gordon Talley
Journalism
Alumni Magazine
Mass
Feature Story
Bound or stitched
Offset
www.rgtalley.com
R. Gordon Talley
Communication
WHY?
for Institutional Advancement
Paradigm Shift:
The New Paradigm
Concept
Flagship Publication
Audience
Editorial
Format
Printing
AISNE Conference 2001
© 2001 R. Gordon Talley
Marketing
Web Site
Targeted
Interactive
?????
?????
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
WHY?
95/5
Gift Level
The Gift Pyramid
$100,000 +
$10,000–$100,000
Less than
$10,000
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
WHY?
95/5
The New
Pyramid
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
WHY?
for Institutional Advancement
95/5
10/97
90/3
$10,000+
Connecticut
College
110% Goal
77/1
$100,000+
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
WHY?
Moves Management
Personalization of Relationship
“Natural Partner”
Tracking Contacts
Moments of Engagement
Message
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
WHY?
Hydrodynamics
Campaign Fluidity
Lagging Goals
Success
Initiatives and Opportunities
Leadership Changes
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
WHY?
Cost Analysis
Unit Cost
Waste
Payback, or Cost per Sale
PODi Analyses
Value Proposition
“Pull” Marketing
Underlying Market Forces
Adobe Presentation at DRUPA:
Benefits of Personalization
Whirlpool Case Study
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
Payback formula
Graph Expo
Chicago
Sept. 24, 2000


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
Example:
traditional payback model
Graph Expo
Chicago
Sept. 24, 2000

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.
If your response rate never
varies:
Graph Expo
Chicago
Sept. 24, 2000

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 fundamental
value proposition
of personalized print is:
it increases the value
of the printed page
as a purposeful
communication tool.
Pull Marketing
Graph Expo
Chicago
Sept. 24, 2000

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”
The underlying
marketing forces
Graph Expo
Chicago
Sept. 24, 2000

“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
Controlling the sales process
Graph Expo
Chicago
Sept. 24, 2000

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”
R. Gordon Talley
Communication
for Institutional Advancement
HOW?
On-Demand Printing
Characteristics
Examples
What You Need
Software
Hardware
Workflow
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
HOW?
On-Demand Printing:
Characteristics
Bindery
Press
Workflow
Desktop Publishing
Publish and Subscribe
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
HOW?
On-Demand Printing:
Examples
Transitional Period
Combines Preprint and On-Demand
Buckingham Browne & Nichols
Boston Symphony Orchestra
University of Rochester Medical Center
Tuck School
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
HOW?
What You Need:
Software
Page Layout
PageMaker
Quark
InDesign
Word Processing
Microsoft Word
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
HOW?
What You Need:
Hardware
Printer
Desktop
Inkjet vs. Laser
Color Laser
Digital
DocuTech/DocuColor
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
HOW?
What You Need:
Hardware
Bindery
In-house
Wire-O
Digital
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
HOW?
What You Need:
Workflow
Up-to-Date Information
Approval Procedures
Password Security
or Gatekeeper
“Message Delivery System”
Component Design
(Parts Catalogue Model)
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
PROBLEMS
Editorial
Complexity
Personnel
Use of Time
Unfamiliar Roles
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
PROBLEMS
Editorial
Complexity
Level of Detail
Anticipate Donor Interest
Gift Opportunities Orientation
(Donor Engagement)
Component Model
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
But:
Graph Expo
Chicago
Sept. 24, 2000

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
R. Gordon Talley
Communication
for Institutional Advancement
PROBLEMS
Personnel
Use of Time
Re-allocation of Communications Effort
Increased Presence in Development Team
Unfamiliar Roles
Major Gifts Officers
Increased Responsibility for Donor
Communications
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
Graph Expo
Chicago
Sept. 24, 2000
Adding value
in the face of trends that will
change our industry

Manage scope
 Choose a task that will create
enough value to be worth
everyone’s investment
 Get moving
 Maintain momentum
 Stay flexible as things change.
R. Gordon Talley
Communication
for Institutional Advancement
The Future: “Next Step” Scenarios
Editorial
Publish and Subscribe
Information Management
Printing and Delivery
True DocuTech
Web
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
FUTURE
Editorial
Publish and Subscribe
“Merge” Document
PPML Software
Information Management
Digital Media Management
Internet/Intranet
LiveLink
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
FUTURE
Printing and Delivery
True DocuTech
Limited-Run Bound Case Statements
Web Delivery
PDF File Generation
Donor-Dedicated FTP Sites
Intranet Information Systems: LiveLink
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com
R. Gordon Talley
Communication
for Institutional Advancement
FUTURE
The Tailored Case
Old
Transition
Future
Message
Overview and
Complete Goal Set
Overview and Single
Goal
Donor-Requested
Information
Print
Offset
Offset and Desktop
On-Demand or
Web
Bindery
Saddle or Perfect
Bound
Wire-O
On-Demand or
Web
Editorial
Fixed
Components
Distribution
Mail and In Person
In Person
Personnel
Communications
Team or Consultant
Communications
Team and Major
Gifts Officers
Publish and
Subscribe
In Person and
Web
Major Gifts
Officers
AISNE Conference 2001
© 2001 R. Gordon Talley
www.rgtalley.com