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Xerox Premier Partner Meeting Dublin 2008 From Shamans to Surgeons, the new business model for the Printing business.TRANSCRIPT
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”
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Too stuck in the “comfort zone”
ICEBERG
I cry for every penny lost
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The efforts
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The Marketing drift
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Art Commercial
Show me the money!!!
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Where does the game get jammed?
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Let’s check the midfielders
Which is the
reason we
cannot make the
midfield work as
intended?
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Scenario
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Personalized marketing is sick
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With a little bit of imagination
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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
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La Percepción
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La realidad
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Is this a profile?
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A sistematic approach to profiling
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There Ain't No Such Thing As A Free Lunch3
3There Ain't No Such Thing As A sneaked profile
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...unless, of course you belong to3
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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
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Step by Step
ABSOLUTE UNKNOWN
Behavioral / Semantic, Second degree
Clustering
Sociodemographic knowledge
Trivial Knowledge / Semantic, first degree
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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
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“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
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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
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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
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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?
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Let’s read the right way
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One idea: Transpromo
The idea is simply wonderful
Thousands of communications, periodic, relevant and stored
Infinite potential for personalization
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The problem
Who in hell knows what makes this tick?
What works and what not?
Show me the money!
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The Industry need
Create expertise centers
Focus in awareness creation
Let’s desmitify
Let’s pilot the industry transition
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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
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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
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Conclusions: current situation
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Conclusions: Innovation
What drives Innovation: NEED
• Cutthroat competence
• Competition a click away
• Brutal price wars
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• 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
