Panel discussion topic: Successful strategies transforming information into new sources of business value.
Comments by panelist Jeetu Patdla, a Doculab Consultant; “Innovative use of information is not changing corporations as much as transforming entire industries.” For example, consider how Netflix’s mail order movie DVDs service model has impacted Blockbuster’s bricks and mortar movie DVD rental business.
Similarly consider Amazon.com’s use of “client data” of suggesting other books by the same author or similar topical books to the one just purchased a few days earlier. What impact has this personalized knowledge interpretation by Amazon had on the Barnes & Noble business model? The difference is much more than Internet purchasing versus bricks and mortar retailing. This is utilizing pattern recognition software, which is not in violation of any privacy interpretations.
Printers impact: The e-mail suggestion by Amazon that the customer might find a similar book or another book by the same popular author worth purchasing is a fascinating use of variable personalized information. But of the myriad such “interesting” come-ons that I have received from Amazon, I have never taken advantage of any offers despite my potential interest.
And the reason is simple. It was not top-of-mind to me at the time. However, if I had received a post card from Amazon with the same recommendation showing the four-color cover of the suggested book, I might well have saved the post card for later consideration.
The well recognized 3M Post-it™ notes were converted to “Repositionable Notes” to be attached to the outside of mailed envelopes or to the covers of mailed periodicals. This was a USPS innovation, which has resulted in surprisingly positive consumer response. The note has an offer and URL for placing an order. It has turned out that interested prospects have taken the repositionable note off the envelope and attached it (remember the sticky backing) to a corner of their computer monitor or some place convenient to be considered later. Statistical research has indicated that this little reminder often results in a purchase decision as much as two and even three weeks after receiving the note.
So some bright printer is going to approach Amazon with a multi-media program. Amazon no doubt knows the response rate for their customized e-mail appeal. The printer’s idea to complement that same appeal with a mailed offer will be easy to track the effectiveness (and return on investment) of this “retainable” tickler.
At the very least Amazon will begin to tag those customers who needed a little extra time to consider the offer or check personal references among friends who might have heard of or read the second book recommended. Or who knows, maybe Barnes & Noble could build a database of their clients’ topical and author preferences and initiate a multi-media offer including an offer for a dollar off their Seattle’s Best coffee when the prospect comes in to look at the book.
Discussion
By Kevin Keane on Apr 27, 2010
Hi Clint
as always, great thought provoking commentary. We are grateful to you!
There is a fascinating and very in-depth article in this week's New Yorker magazine which I blogged about on Saturday.
www.iaphc.org/kevblog
I encourage folks intrigued by Amazonian in-roads into print publishing to have a look-see.
Cheers,
Kevin Keane
By Gary S. Zumberge on Apr 29, 2010
Kevin,
Great article. Your comments are important on a larger field of view than just about Amazon, to me at least and I have to believe to all in the printing industry. Why? Read this to the end please. I have patented a simple, highly functional, added value media product, actually a reinvention of the most ubiquitious media piece in business world. When I show it in person to a prospect 90% respond with comments of "why didn't I think of that?!", " very cool! where can I get them?", "these are a no brainer, everyone will want these"... until I show it to a printer. Then I hit the wall, a real wall of resistance to change. Their sales reps are chomping at the bit to get them in their hands and the sr. mgmt. eventually share their perspective "why change it if it isn't broken?" or " we would wind up canabalizing our existing customers worth tens of millions of annual sales and then be at your mercy to raise the price of your substrate, or sell your company to our competitors..." I continue to gain market attention and growing sales because of the product but I am still dumbfounded at the imbedded resistance by intrenched off set printers primarily to turn their back on a very easy and a[ppreciated sale to their customers. I am not in the printing industry but I have a tiger by the tail and would like to hear your thoughts. How can a suffering industry loosing sales to the buyers mind set of "whats new? whats cool? what is the best value" and looking more and more to the electronic devices when in truth something actually New ( a new catagory of product actually)is very rare? Our products work, customes love them. Getting printers to embrace the new product is a very good example of the old saying "you can lead a horse to water but you can't make'em drink".
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