xerox dublin javier_recuenco_v24

From Shamans toSurgeons

The emerging new business model for digital printing

2009

Javier G. Recuenco

Before start, two questions

How many of you have attended a

conference on the advantages of the use of

personalization in printing in the last five

years?

Agosto de 2008

How many of you are satisfied with the

commercial results obtained from the

translation of such conclusions to

your day-to-day work?

My opinion on personalized digital printing?

Infinite potential

Personalization issues : Trivialities and inaccuracies

There’s not an academic corpus of reference

Underutilized

Too stuck in the “comfort zone”

Agosto de 2008

Too stuck in the “comfort zone”

ICEBERG

I cry for every penny lost

Agosto de 2008

The efforts

Agosto de 2008

The Marketing drift

Agosto de 2008

Art Commercial

Show me the money!!!

Agosto de 2008

Where does the game get jammed?

Agosto de 2008

Let’s check the midfielders

Which is the

reason we

cannot make the

midfield work as

intended?

Agosto de 2008

Scenario

Agosto de 2008

Personalized marketing is sick

Agosto de 2008

With a little bit of imagination

Agosto de 2008

The Marketing drift, revisited

Art Science

Agosto de 2008

Art Science

http://sethgodin.typepad.com/seths_blog/2

009/05/is-marketing-an-art-or-a-

science.html

The bottom line

Agosto de 2008

La Percepción

Agosto de 2008

La realidad

Agosto de 2008

Is this a profile?

Agosto de 2008

A sistematic approach to profiling

Agosto de 2008

There Ain't No Such Thing As A Free Lunch3

3There Ain't No Such Thing As A sneaked profile

Agosto de 2008

...unless, of course you belong to3

Agosto de 2008

Trivial Use = Trivial Impact

Some shocking conclusions derived from our current studies

so far:

Over the total of relevant attributes (The ones who really have

an impact on the purchase process) used on a customer

model, sociodemographic data (The ones ussually available

and therefore the most used in segmentations) only

contribute with a 15%

Agosto de 2008

contribute with a 15%

Databases do not hold the needed information for generated

clusters being of any use, and they simply have value

against no segmentation, but they are clearly suboptimal.

Causing a smile is not the same than causing a durable

commercial impact. And loses effectivity with time.

Bring the contextual to the table

Usuario

Perfil

Atributos

Contextuales

Atributos que

identifican

macrotendencias

consolidadas o datos

Segmento

Segmento Protocolo

Asociado

A Segmento

Segmento de

valor vigente

Preselecciona

Dispara

Determina la pertenencia

SNAPSHOT:

Datos capturados de

un cliente en una

interacción con NH

Datos de perfil

Datos

Contextuales

Actualiza

Determina

Segmentaciones de Valor

Valoración

Parcial

Valoraciones Globales o

Ponderadas

Determina

Valoración

Parcial

Valoración

Parcial

Valoración

Parcial

Protocolo final a

aplicar

Protocolos

híbridos /

combinacionales

Puede disparar

Agosto de 2008

Repositorio de

Protocolos de Actuación

Usuario

Guia de Segmentación

Contextual

Contextuales

Atributos que

identifican tendencias

puntuales

consolidadas

Snapshot timeline

(Atributos

Contextuales)

Infiere

Genera

Contexto

Protocolo

Asociado a

ContextoPreselecciona

Taxonomía Contextual

Condicionantes

Contextuales

Dimensión

Principal

Contexto Posible

Contexto Posible

Contexto Posible

Contexto con sentido

de negocio

Contexto con sentido

de negocio

Limita

Genera

Potencialmente

Puede generar

Transiciones dinámicas

Contexto

Vigente

ESCENARIO B:

Segmentos de Valor no

preeminentes

Tuning Chart

Agosto de 2008

Step by Step

ABSOLUTE UNKNOWN

Behavioral / Semantic, Second degree

Clustering

Sociodemographic knowledge

Trivial Knowledge / Semantic, first degree

Agosto de 2008

MIND READING

Behavioral / Semantic, Second degree

Emotional, contextual and attitudinal knowledge with value in terms of taking

commercial decisions

Emotional, Contextual and Attitudinal Knowledge

Personal Privacy Aspects

A non-formal definition?

Harry S. Stamper (Bruce Willis), Armageddon, on

drilling:

“Drilling is an art. It has been running in my family for

generations. I have dedicated 28 years of my career

to it and I am still learning.”

It basically involves getting something pretty much

simple and intuitive (The capacity of adapting our

Agosto de 2008

simple and intuitive (The capacity of adapting our

product/service to customer needs in every

moment) which in truth, demands a lot of know how

and a bunch of different disciplines involved, as

we will see later.

There’s much more unwritten than written about

personalization.

The case for personalization

LAW OF OFFER AND DEMAND

Agosto de 2008

“There’s no such things as mature business, there are

business who have not applied personalization”

Pascual Montañés, IE professor

Does it have economic sense?

There’s a lot of money in democratizing

goods/products/services which were initially

available just for a chosen elite

Service democratization -> Low cost

Tourism democratization -> Globalia

Agosto de 2008

Tourism democratization -> Globalia

Hotel Quality democratization -> NH hoteles

Democratized access to differentiated and exclusive

Product / Services -> PERSONALIZATION

Which is MKT Holy Grail?

RELEVANCE

• We are consumers

• They are not offering us drugs or arms

What sets apart success from failure is that what we

are being told concerns us, and as a bonus, that

Agosto de 2008

are being told concerns us, and as a bonus, that

reaches us in the precise moment and through the

most adequate channel as possible

That’s the wet , secret dream of every MKT director

worldwide

An Example

Creating a TRIVIAL RELEVANCE

Balanced Recommenders: 10x money generated by

GOOGLE on next 10 years

Killer app of MKT, XXI century: TARGETED AND

PERSONALIZED ADVERTISING

Agosto de 2008

PERSONALIZED ADVERTISING

What about the ad agency?

Ad agencies have its own problems at the time being:

"Ahora mismo estamos perdidos, igual que el resto de colectivos de este

país", reconoce Segarra. [3] "Fundamentalmente, se está

transformando el modelo de negocio", observa Segarra. "Estamos

pasando de una etapa donde accedíamos a un público masivo a otra

donde la audiencia se dispersa y fragmenta". Mancebo precisa otro

importante detalle: "Cambia el modelo de negocio porque ahora el

consumidor tiene voz. Nos replica, y de forma inmediata".

El Mundo, Reflexiones de los creativos españoles más importantes,

27/04/2009

Agosto de 2008

27/04/2009

Q: ¿Pero realmente hay un modelo de negocio en Internet? ¿Se puede

ganar dinero?

JLC: Se sabe cómo ganar, y hay algunos que lo hacen, pero los

márgenes son muy inferiores; y ése es el drama. Un site informativo

de éxito en Internet tiene márgenes de explotación del 4%. Un

periódico o una radio tiene un margen del 25% o del 30%. Es

imposible competir, pagar bien la mano de obra intelectual, enviar

corresponsales... Todos los modelos están montados respecto a un

sistema del pasado. Vivimos un cambio de modelo, no una crisis

Esquire, entrevista a Juan Luis Cebrián, 27/4/2009

What’s personalization?

A continuous process of

customer knowledge and

portfolio modulation that

allows us to suggest him

a personalized offer, in an

adequate communication

Agosto de 2008

adequate communication

context, with an objective of

achieving a state of

Commercial Intimacy

abypersonalize, 2003

Commercial Intimacy?

A final state, aspired by a

company with respect to their

customer, in such a way that

there’s enough knowledge,

prudence and trust for both

sides, and therefore there are no

Agosto de 2008

sides, and therefore there are no

commercial interactions which

turn out annoying, unsatisfactory

or just plain useless

abypersonalize, 2003

What’s the role of paper on this maelstrom?

Agosto de 2008

Let’s read the right way

Agosto de 2008

One idea: Transpromo

The idea is simply wonderful

Thousands of communications, periodic, relevant and stored

Infinite potential for personalization

Agosto de 2008

The problem

Who in hell knows what makes this tick?

What works and what not?

Show me the money!

Agosto de 2008

The Industry need

Create expertise centers

Focus in awareness creation

Let’s desmitify

Let’s pilot the industry transition

Agosto de 2008

The Solution

1to1 Labs (Xerox & others)

Competence centers

Innovate

Awards and Symposiums

Traditional printing push to migrate to new capabilities

Agosto de 2008

capabilities

The Solution’s problem

Agosto de 2008

Orkut

The true solution

Both the

customer and

the agency

cannot

Agosto de 2008

cannot

distribute the

needed game

The true solution

Strategic Personalization

channels

Digital Printers

Ad AgencyEnd

Customer

MKT

Printer

Ad agency

Agosto de 2008

Personalization Specialist

Printers

Customer MKT &

Strategy

Ad AgencyCustomer

Sales

Printer

Ad agency

Ask yourself this question:

Agosto de 2008

Randy Swope, Xerox, 2008

If your answer was

A) A Direct Marketing specialist witn 30 years of experience in the DM sector

B) An Ad agency who has created a “hyperpersonalized” campaign with six

different segments

C) A Marketing professional who has a signed photo with Kotler and 30 years

of experience under his belt

Agosto de 2008

of experience under his belt

D) An specialist in WHAT?

E) A youg MBA

F) A printer who has a vague idea of the word and did once a calendar with

some customer names using XMPIE

G) One of The Dublineers after a whole Guinness rocky night

you’re dead

Agosto de 2008

The Example (I)

Hospitality leading company, 300+ hotels worldwide

Strategic Personalization project

10 years budget, building competitive advantage around personalization

Horizontal, Cross- department initiative

Agosto de 2008

Horizontal, Cross- department initiative

Effective segment pre-work around half a year

The Example (II)

Impact at EVERY level in the company

Operations

Technology

Infraestructure

Agosto de 2008

Hundreds of personalized services to customer in different hospitality environments and scenarios

� HAS (Helpers, Aids & Services) : Son el conjunto de servicios que se pueden prestar al

cliente, bien para ayudarle en la realización de su cometido principal o para incrementar su

comodidad

� ROOM: Todo lo que podemos experimentar en la habitación. Se divide en:

� ROOM EXPERIENCE: Lo que llamamos experiencia “out of the box” – Lo que nos

transmite la habitación en los primeros 15-20 minutos de estancia

� ROOM PLACEMENT: Dónde y cómo está colocada la habitación

The Example (III)

Agosto de 2008

46

� ROOM PLACEMENT: Dónde y cómo está colocada la habitación

� ROOM ENTERTAINMENT: Qué me ofrece la habitación en términos de entretenimiento

� TREATMENT: Cómo quiere el cliente ser tratado en sus diferentes interacciones con el hotel

� FOOD & BEVERAGE: Las preferencias del cliente en términos de bebida/comida

� OPERATIONS: Cómo le simplificamos las operaciones clásicas del hotel

� NON ROOM ENTERTAINMENT: ¿Qué me puede ofrecer el hotel como experiencia de ocio a

realizar fuera de mi habitación?

� Y a todos estos aspectos les colocamos la coletilla “3 que a mí me interese y tenga en cuenta

mi perfil y circunstancias en cada estancia”

The Example (III)

Dozens of perks make use of personalized digital printing

Weather Forecast

Local Informative contents

International press headlines

Agosto de 2008

Ready to carry printed maps

Available preferred TV programming

Potential activities to be done report

Director’s choices report

Digital printing is a key channel in the whole project, because it’s able to support personalized, live and leaded contents.

Translating the concept to transpromo

We need to work with the end customer creatingseveral needed items

Segmentation

PPM

Value Models

We can add a spark of creativity – as a spice, not as a

Agosto de 2008

We can add a spark of creativity – as a spice, not as a main dish

IT’S NOT A MECHANISM TO TRANSLATE YOUR BANNER TO ANOTHER CHANNEL

Tell a story!

Analyze, measure, polish, start all over again

The hard numbers

Average estimated return in direct campaigns with some kind of basic personalization involved (sociodemographic, clustering3) compared witntraditional campaigns : 100-200%

Figures obtained from recent experiences (Tuenti, Vodafone)

Our stimated return in terms of end to end application

Agosto de 2008

Our stimated return in terms of end to end application of our methodology and technology built around personalization :

3,000% as average!

Peaking at 5,000% (Luxury, Fashion3)

Those figures are not tiphographic errors

Conclusions: The needed change

Agosto de 2008

Conclusions: current situation

Agosto de 2008

Conclusions: Innovation

What drives Innovation: NEED

• Cutthroat competence

• Competition a click away

• Brutal price wars

Agosto de 2008

• Brutal price wars

• Paradigm Shift

• “Commoditization” – Pervasive Low-cost

• General Market Maturity

• VCR

Conclusiones: The times they are a changin’

• Media

– TV

– LIFE

– Hachette

– Press

Agosto de 2008

– Record Industry

• Digital Printing Business .

Conclusions: The strongest force in the universe

Agosto de 2008

Conclusions: Do not stick to trivial use

Agosto de 2008

Agosto de 2008

aby1to1

javier.recuenco@abypersonalize.com