Here’s where innovative publishers need to focus
There are a number of key attributes successful publishers will be known for in the future. These core capabilities will be very different from the ones that have led to the modern empires of the Big Five.
Some attributes will remain the same, of course. For example, it will always be crucial for publishers to acquire, develop and produce excellent content. But the services and capabilities that surround and complement the acquire/develop/produce core are what will matter most.
With that in mind, here’s my short list of what will separate tomorrow’s publishing leaders from all the rest:
Being data-driven – Remember the old days when Ingram data was the only source of industry-wide sell-through information? Then Bookscan hit the scene and it felt like we moved from the Stone Age to the Information Age. I’m not talking about this kind of data. Bookscan and other retailer sell-through numbers are lagging indicators. They represent what happened yesterday, last week or last month. The successful publisher of tomorrow wants to know what’s happening right now and where the trends are leading. Real-time website analytics, heat maps, email open/click-thru rates…that’s where the actionable data can be found today but most book publishers treat them as secondary information sources at best. A publisher who thinks they’re data-driven today might adjust plans for a book scheduled to publish six months from now based on sell-through data they studied from last month. Tomorrow’s data-driven publisher will alter the free content on their website this afternoon based on information they gathered this morning.
Breaking free of containers – Why are publishers focused on lagging indicators? Because they’re stuck in the era of containers. They’re producing books, magazines or newspapers and they measure everything based on those containers. It may not be obvious but the container model is slowly fading away. Please don’t misinterpret this. I’m not saying books are going away. Print books will still be produced for a long, long time. But the way content is being consumed is shifting to a more digital, container-less model. Think about that last bit of content you read on your phone. Did you care whether it was originally produced for a newspaper, a magazine, a blog, a website or a newsletter? Probably not. What mattered most is that the content covered a topic that matters to you. Innovative publishers need to think more about highly relevant content streams rather than content containers.
Direct-to-consumer (D2C) – I vividly recall talking five years ago with a Big Six executive about the importance of creating a vibrant direct-to-consumer channel. She rolled her eyes and said they’d never do that because they prefer to let their retail partners handle the consumer connection. I feel somewhat validated now as I see that same publisher experimenting more and more with D2C. It’s not just about capturing all the revenue. The data and resulting opportunities to do some very powerful things with that data are what make D2C such an important model. That, and the fact that you become less reliant on middlemen who control your destiny, ought to be reason enough to focus on D2C.
Owning and leveraging the list – The most important piece of data every publisher should own is the customer name and email address. This is what makes D2C so special. Securing names and emails isn’t as easy as simply making a sale. You’ve got to earn the consumer’s trust by having them opt in to your future marketing campaigns. Too many publishers who have built a D2C channel simply become data hoarders, gathering names and emails but never doing much with them.
Building the funnel – One of the biggest reasons publishers don’t go direct is that they feel they’re unable to attract enough traffic to make it worthwhile. That’s because they’re not applying the funnel model. You start by offering plenty of outstanding free content on your site. Once visitors arrive and they like what they read you have the opportunity to connect with them via free newsletters, for example; rather than waiting and hoping they come back, offer to continue sending outstanding content right to their email inbox. Part of this step includes asking them to opt in for other offers and information from you. As the funnel narrows from top to bottom, you’re leading these consumers along a path loaded with all your terrific content, some of it free and some of it paid.
This isn’t for everyone. For example, the Big Five are simply too reliant on the existing ecosystem, unwilling to risk alienating certain channel partners and built upon a very rigid container-based creation and distribution model. The Big Five will remain large, just like B&N and Borders did for many years after Amazon arrived. But then Borders went away and in order to survive B&N evolved from a bookstore to a gift shop.
The smaller players though, the ones who focus on a particular topic, vertical or audience are the publishers who are best positioned to embrace the attributes described above. And as they do they’ll find themselves in a far better world with a direct connection to customers and the ability to serve those customers with more than just one or two types of container-driven content.
I don't think I've ever missed an article. Our community grows by over 1000 a day now, in part, because of your validation and wisdom. Because of the very ideas contained in this post, we now sell our books and our peers' books. We also have so much data, we are able to predict a consumers next book and serve it to them. Keep up the awesome writing.
Posted by: Ken Dunn | May 09, 2016 at 08:10 AM