Michael Tamblyn  @mtamblyn
EVP Content, Sales &  Merchandising      @kobo
20 minutes
Four users
how we look at readers and         reading
and to answer the    question:
“What happens when...
...a group ofreading-obsessed technophiles...
...get their hands on the    richest data set...
...in the history of the book          industry?”
A bit about Kobo
global ebook retailer
2M+ registered users
200 countries
34,300 employees   24,100 employees   170 employees!!
#1!
May 2010 $149
Cloud
obsessed
segments
Geography Reading PlatformPricepoint Tolerance  Reading History  Lifetime Value   Free vs. Paid
can get complicated      quickly
vs.
vs.
<$5   80%      free
<$5    80%       free~$11   100%        paid
complicated
4 users
eInk Reading Machine
eInk Reading Machine Gold-A Kobo2Jun-2010 Fiction100% Paid
eInk Reading Machine Gold-A Kobo2Jun-2010 Fiction100% Paid
eInk Reading Machine Gold-A         Most valuable Lifetime Value cohort Kobo2Jun-2010 Fiction100% Paid
eInk Reading Machine Gold-A           Most valuable Lifetime Value cohort Kobo2        Cohort               GoldJun-2010  ...
eInk Reading Machine Gold-A           Most valuable Lifetime Value cohort Kobo2        Cohort               Gold       1st...
eInk Reading Machine Gold-A Kobo2Jun-2010 Fiction100% Paid
eInk Reading Machine Gold-A             Most Productive Sales Channels                           (% conversion) Kobo2     ...
eInk Reading Machine Gold-A Kobo2Jun-2010 Fiction100% Paid
eInk Reading Machine Gold-A Kobo2        Purchase frequency is increasingJun-2010                  overall. eBook buying i...
eInk Reading Machine Gold-A                  A customer who starts in Kobo2         June 2010 buys 44% more in            ...
eInk Reading Machine Gold-A Kobo2               A customer joining Nov. 2010               buys 70% more in their firstJun-...
eInk Reading Machine Gold-A                         Why? Kobo2                 Better apps                     Better devi...
Gold-A Kobo2Jun-2010 Fiction100% Paid
Health                                 Religion                                            Business                eInk Re...
Gold-A Kobo2Jun-2010 Fiction100% Paid
Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
Small-screen ReaderBronze-E        Largest segment in terms of numbers iPhone Nov-10Romancepaid+free
Small-screen ReaderBronze-E         Largest segment in terms of numbers iPhone       Cohort               Gold Nov-10     ...
Small-screen ReaderBronze-E         Largest segment in terms of numbers iPhone       Cohort               Gold Nov-10     ...
Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
Small-screen ReaderBronze-E       Least Productive Sales Channel                          (% conversion) iPhone        1. ...
Small-screen ReaderBronze-E iPhone         Small screen device = Nov-10          lower price-point                      to...
Bronze-E iPhoneNov-10Romance50% paid
Actual Selling Price vs. Purchasing PlatformCan$10.00                    8.84     8.53 Can$7.50    7.80                   ...
Actual Selling Price vs. Purchasing PlatformCan$10.00                    8.84     8.53 Can$7.50    7.80                   ...
Actual Selling Price vs. Purchasing PlatformCan$10.00                    8.84     8.53 Can$7.50    7.80                   ...
Actual Selling Price vs. Purchasing PlatformCan$10.00                    8.84     8.53 Can$7.50    7.80                   ...
Actual Selling Price vs. Purchasing PlatformCan$10.00                    8.84     8.53 Can$7.50    7.80                   ...
Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
Small-screen ReaderBronze-E iPhone               Small screen device = Nov-10             less likely to stick aroundRoman...
Small-screen ReaderBronze-E iPhone Nov-10                  churnRomancepaid+free
Small-screen ReaderBronze-E                    Platform User Longevity               1. Kobo eReader iPhone        2. Kobo...
Small-screen ReaderBronze-E                    Platform User Longevity               1. Kobo eReader iPhone        2. Kobo...
Small-screen ReaderBronze-E                    Platform User Longevity               1. Kobo eReader iPhone        2. Kobo...
Small-screen ReaderBronze-E                    Platform User Longevity               1. Kobo eReader iPhone        2. Kobo...
Small-screen ReaderBronze-E                    Platform User Longevity               1. Kobo eReader iPhone        2. Kobo...
Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
Histori                                    cal                                            Erotica                         ...
Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
iPad SocialiteGold-B  iPadDec-10General90% paid
iPad SocialiteGold-B  iPadDec-10General90% paid
iPad SocialiteGold-B        Not as good as the Reading Machine, but                         still pretty great.  iPadDec-1...
iPad SocialiteGold-B        Not as good as the Reading Machine, but                         still pretty great.  iPad     ...
iPad SocialiteGold-B        Not as good as the Reading Machine, but                         still pretty great.  iPad     ...
iPad SocialiteGold-B  iPadDec-10General90% paid
December 2010
(just launched for iPhone           too!)
How does social change     eReading?
Quite a lot.
33% more time in app
Reading behaviour atdifferent times of day
Average Time in App vs. “Time of Day” Awards60%45%30%15% 0%-15%-30%-45%-60%           mute                               c...
Average Time in App vs. “Time of Day” Awards60%45%30%15% 0%-15%-30%-45%-60%           mute                               c...
Average Time in App vs. “Time of Day” Awards60%       7-9am45%30%15% 0%-15%-30%-45%-60%           mute                    ...
Average Time in App vs. “Time of Day” Awards60%           m m-n o o n        -9a 9a       745%30%15% 0%-15%-30%-45%-60%   ...
Average Time in App vs. “Time of Day” Awards60%           m m-n o o n        -9a 9a       745%                12   -2pm30%...
Average Time in App vs. “Time of Day” Awards60%           m m-n o o n        -9a 9a       745%                12   -2pm30%...
Average Time in App vs. “Time of Day” Awards60%45%30%15% 0%-15%-30%-45%-60%           mute                               c...
Average Time in App vs. “Time of Day” Awards60%45%30%15% 0%-15%-30%-45%-60%           mute                               c...
Average Time in App vs. “Time of Day” Awards60%45%30%15%                                           6-8pm 0%-15%-30%-45%-60...
Average Time in App vs. “Time of Day” Awards60%45%30%15%                                           6-8pm am               ...
Average Time in App vs. “Time of Day” Awards60%45%30%15%                                           6-8pm am               ...
Average Time in App vs. “Time of Day” Awards60%45%30%15%                                           6-8pm am               ...
Bet                    ter                        i nB                            ed                    Prim              ...
Bet                    ter                        i nB                            ed                    Prim              ...
1              Bet                    ter                        i nB            0-1                            ed        ...
1              Bet                    ter                        i nB            0-1                            ed        ...
8pm-midnightebook shopping primetime
The Freegan
The Freegan*FreeganWebsite Apr-10 Fiction100% free
The Freegan*FreeganWebsite Apr-10 Fiction100% free
The Freegan*Freegan              “Below Bronze-F”Website Apr-10 Fiction100% free
The FreeganBronze-FWebsite Apr-10 Fiction100% free
Free Books Accessed                   The FreeganBronze-FWebsite Apr-10     Web             ne                      roid  ...
Side-loadingZero investment International
Not everyone who readsfree books is a freegan.
Lots are paygans.
Customers with Free Books                 The FreeganBronze-FWebsite Apr-10 Fiction   e           es                 es   ...
Customers with Free Books                eBook           Training wheels                 The FreeganBronze-FWebsite Apr-10...
Customers with Free Books                eBook           Training wheels                 The FreeganBronze-F              ...
Customers with Free Books                eBook           Training wheels                 The FreeganBronze-F              ...
Customers with Free Books                eBook           Training wheels                 The FreeganBronze-F              ...
1t                                                                                   im                                   ...
1t                                                                                   im                                   ...
Customers with Free Books                                                          Freegan                                ...
Customers with Free Books                                                          Freegan                     Freegan    ...
The Freegan*FreeganWebsite Apr-10 Fiction                                  to Mar keting                     Res istant100...
Why?
make reading better
know the reader,sales will follow.
Michael Tamblyn | @mtamblyn | mt@kobo.com
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)
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Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)

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An In-depth, Research, and Data-driven Exploration of Reading Behavior, Content Consumption, and Consumer Attitudes Toward eReaders and eReading

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  • great customer insights into reading motivations on digital platforms. A must read for all digital publishers.
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  • \n
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  • We eat\n
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  • We&amp;#x2019;re doing a ton of stuff with social, but having now seen 5 social presentations, we may come out of this all feeling that &amp;#x201C;Hell is other readers.&amp;#x201D;\n
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  • 3rd most popular eReading app for the iPhone (# 34,300 employees, #, #)\nAlso The first ebookstore for the (#)\n
  • &amp;#x2026;\nThe first ebookstore for (#)\n
  • &amp;#x2026;\nThe first eInk device for (#)\n
  • \nThe first ebookstore in the (#)\n
  • (cloud)\n
  • We are obsessed with reading, with the reader, with how they behave, about their characteristics. \n
  • Making assumptions about the &amp;#x201C;typical&amp;#x201D; digital reader is incredibly difficult. Instead, we try to look for meaningful segments, smaller groups that do have some consistent behaviours.\n
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  • Because it isn&amp;#x2019;t just how is a consumer from the UK different than a consumer from HK.\n
  • Or do you sell differently to a romance buyer in UK than a thriller reader in Hong Kong.\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • or is there a difference between a reader who...\n\n
  • it gets complicated. So to give a sense of the way that we look at some of these different combinations, I&amp;#x2019;ve pulled out some samples.\n
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  • I&amp;#x2019;ll spend a bit of time with each one. We&amp;#x2019;ll look at some of the data that is especially relevant to that user and along the way, you&amp;#x2019;ll hopefully get a sense of both what we&amp;#x2019;re finding interesting right now and how our understanding of the digital reading is evolving.\n\n
  • I&amp;#x2019;ll spend a bit of time with each one. We&amp;#x2019;ll look at some of the data that is especially relevant to that user and along the way, you&amp;#x2019;ll hopefully get a sense of both what we&amp;#x2019;re finding interesting right now and how our understanding of the digital reading is evolving.\n\n
  • I&amp;#x2019;ll spend a bit of time with each one. We&amp;#x2019;ll look at some of the data that is especially relevant to that user and along the way, you&amp;#x2019;ll hopefully get a sense of both what we&amp;#x2019;re finding interesting right now and how our understanding of the digital reading is evolving.\n\n
  • I&amp;#x2019;ll spend a bit of time with each one. We&amp;#x2019;ll look at some of the data that is especially relevant to that user and along the way, you&amp;#x2019;ll hopefully get a sense of both what we&amp;#x2019;re finding interesting right now and how our understanding of the digital reading is evolving.\n\n
  • She is an eInk Reading Machine. And here are some of the things we know about her.\n\n
  • She is an eInk Reading Machine. And here are some of the things we know about her.\n\n
  • She is an eInk Reading Machine. And here are some of the things we know about her.\n\n
  • She is an eInk Reading Machine. And here are some of the things we know about her.\n\n
  • She is an eInk Reading Machine. And here are some of the things we know about her.\n\n
  • She is an eInk Reading Machine. And here are some of the things we know about her.\n\n
  • She is an eInk Reading Machine. And here are some of the things we know about her.\n\n
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  • She has been with us since June 2010. She probably had a first edition Kobo eReader and has since upgraded to a 2nd edition Kobo. We look at when people joined very closely and are starting to see some interesting patterns there. Generally, we can say that (#)\n\n
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  • The last one is important. Our suspicion is that we&amp;#x2019;re not just moving more people from print to digital. We&amp;#x2019;re moving more heavy readers from print to digital more quickly.\n\n
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  • She also tends to buy just about everything she reads. Now we distort that a bit by preloading free books onto the eReader, but as far as her ongoing consumption goes, she&amp;#x2019;s a full on customer with a big focus on new releases.\n\n
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  • Talk about why -- lots of testing, app trialing, large percentage of apps that are installed are not used.\n\n
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  • (#) Smartphone users, generally, are much more sensitive to price than those on (#) larger-screen devices.\n(#) Android sits in between them because we see both phone and tablet users through the same platform. And the Web is almost exactly the same as the average, which makes sense because people buy on the web for all of their devices.\n\n\n\n
  • (#) Smartphone users, generally, are much more sensitive to price than those on (#) larger-screen devices.\n(#) Android sits in between them because we see both phone and tablet users through the same platform. And the Web is almost exactly the same as the average, which makes sense because people buy on the web for all of their devices.\n\n\n\n
  • (#) Smartphone users, generally, are much more sensitive to price than those on (#) larger-screen devices.\n(#) Android sits in between them because we see both phone and tablet users through the same platform. And the Web is almost exactly the same as the average, which makes sense because people buy on the web for all of their devices.\n\n\n\n
  • (#) Smartphone users, generally, are much more sensitive to price than those on (#) larger-screen devices.\n(#) Android sits in between them because we see both phone and tablet users through the same platform. And the Web is almost exactly the same as the average, which makes sense because people buy on the web for all of their devices.\n\n\n\n
  • (#) Smartphone users, generally, are much more sensitive to price than those on (#) larger-screen devices.\n(#) Android sits in between them because we see both phone and tablet users through the same platform. And the Web is almost exactly the same as the average, which makes sense because people buy on the web for all of their devices.\n\n\n\n
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  • It&amp;#x2019;s an area with a huge number of factors and very hard to generalize\n(#-circle) Smartphones see a lot of people who use for a while, but then migrate to another platform. Or who use it as a second reading platform supplementing an eInk or tablet device.\nBut it isn&amp;#x2019;t screensize. # iPad users come and go while Android users stick around.\nAnd (#) eInk devices and dedicated eReaders generally outperform multi-function devices in terms of overall user longevity\n
  • It&amp;#x2019;s an area with a huge number of factors and very hard to generalize\n(#-circle) Smartphones see a lot of people who use for a while, but then migrate to another platform. Or who use it as a second reading platform supplementing an eInk or tablet device.\nBut it isn&amp;#x2019;t screensize. # iPad users come and go while Android users stick around.\nAnd (#) eInk devices and dedicated eReaders generally outperform multi-function devices in terms of overall user longevity\n
  • It&amp;#x2019;s an area with a huge number of factors and very hard to generalize\n(#-circle) Smartphones see a lot of people who use for a while, but then migrate to another platform. Or who use it as a second reading platform supplementing an eInk or tablet device.\nBut it isn&amp;#x2019;t screensize. # iPad users come and go while Android users stick around.\nAnd (#) eInk devices and dedicated eReaders generally outperform multi-function devices in terms of overall user longevity\n
  • It&amp;#x2019;s an area with a huge number of factors and very hard to generalize\n(#-circle) Smartphones see a lot of people who use for a while, but then migrate to another platform. Or who use it as a second reading platform supplementing an eInk or tablet device.\nBut it isn&amp;#x2019;t screensize. # iPad users come and go while Android users stick around.\nAnd (#) eInk devices and dedicated eReaders generally outperform multi-function devices in terms of overall user longevity\n
  • While eInk consumers are big fiction readers generally, Small screen readers are especially strong consumers of genre fiction sub-categories like sci-fi, fantasy and mystery. But especially (#) romance.\n
  • They also have a strong propensity to go hunting for free titles, but we&amp;#x2019;ll talk more about that in a bit.\n
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  • This person is an iPad user who came on in December. That means we know even more about this user than we do about users on other platforms. As many of you know...\n
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  • Reading Life, a social experience integrated into our reading experience for iPad.\n
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  • One of the options that you have is to connect to Facebook so that you can share some of the events from your reading life with your friends. People that turn this on\n
  • spend 33% more time in app, most of it reading.\n
  • We also give badges and awards to people depending on the time of day they read, whether it&amp;#x2019;s on the way to work\n
  • or at night in bed\n
  • or at lunch time.\n
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  • ((explain what this shows...)\nThe biggest surprise we found in looking at this data was that our assumptions about when and how long people read were completely wrong.\n* ((had thought - late nights, more reading. Daytime, more time-pressured.))\nWhen we looked at people who were consistently reading during the day #\nKill the Commute (#) Sleeping In (#) I Eat Books for Lunch (#) Playing Hooky (#) - they were spending way more time reading (#)\n
  • ((explain what this shows...)\nThe biggest surprise we found in looking at this data was that our assumptions about when and how long people read were completely wrong.\n* ((had thought - late nights, more reading. Daytime, more time-pressured.))\nWhen we looked at people who were consistently reading during the day #\nKill the Commute (#) Sleeping In (#) I Eat Books for Lunch (#) Playing Hooky (#) - they were spending way more time reading (#)\n
  • ((explain what this shows...)\nThe biggest surprise we found in looking at this data was that our assumptions about when and how long people read were completely wrong.\n* ((had thought - late nights, more reading. Daytime, more time-pressured.))\nWhen we looked at people who were consistently reading during the day #\nKill the Commute (#) Sleeping In (#) I Eat Books for Lunch (#) Playing Hooky (#) - they were spending way more time reading (#)\n
  • ((explain what this shows...)\nThe biggest surprise we found in looking at this data was that our assumptions about when and how long people read were completely wrong.\n* ((had thought - late nights, more reading. Daytime, more time-pressured.))\nWhen we looked at people who were consistently reading during the day #\nKill the Commute (#) Sleeping In (#) I Eat Books for Lunch (#) Playing Hooky (#) - they were spending way more time reading (#)\n
  • ((explain what this shows...)\nThe biggest surprise we found in looking at this data was that our assumptions about when and how long people read were completely wrong.\n* ((had thought - late nights, more reading. Daytime, more time-pressured.))\nWhen we looked at people who were consistently reading during the day #\nKill the Commute (#) Sleeping In (#) I Eat Books for Lunch (#) Playing Hooky (#) - they were spending way more time reading (#)\n
  • than the people reading at night (#) Happy Hour (#), Witching Hour (#), Primetime (#) and with people reading at &amp;#x201C;bedtime&amp;#x201D; Better in Bed (#) spending 42% less time reading per session than the average. This was a big shock to us. A lot of us have this preconception that the book industry is kinda powered by the bedside table, and by the almighty trinity of Beach, Bath, and Bed. But this would suggest that at least 2 of those -- Bath time and Bed time -- might not be where people spend as much time reading.\n
  • than the people reading at night (#) Happy Hour (#), Witching Hour (#), Primetime (#) and with people reading at &amp;#x201C;bedtime&amp;#x201D; Better in Bed (#) spending 42% less time reading per session than the average. This was a big shock to us. A lot of us have this preconception that the book industry is kinda powered by the bedside table, and by the almighty trinity of Beach, Bath, and Bed. But this would suggest that at least 2 of those -- Bath time and Bed time -- might not be where people spend as much time reading.\n
  • than the people reading at night (#) Happy Hour (#), Witching Hour (#), Primetime (#) and with people reading at &amp;#x201C;bedtime&amp;#x201D; Better in Bed (#) spending 42% less time reading per session than the average. This was a big shock to us. A lot of us have this preconception that the book industry is kinda powered by the bedside table, and by the almighty trinity of Beach, Bath, and Bed. But this would suggest that at least 2 of those -- Bath time and Bed time -- might not be where people spend as much time reading.\n
  • than the people reading at night (#) Happy Hour (#), Witching Hour (#), Primetime (#) and with people reading at &amp;#x201C;bedtime&amp;#x201D; Better in Bed (#) spending 42% less time reading per session than the average. This was a big shock to us. A lot of us have this preconception that the book industry is kinda powered by the bedside table, and by the almighty trinity of Beach, Bath, and Bed. But this would suggest that at least 2 of those -- Bath time and Bed time -- might not be where people spend as much time reading.\n
  • than the people reading at night (#) Happy Hour (#), Witching Hour (#), Primetime (#) and with people reading at &amp;#x201C;bedtime&amp;#x201D; Better in Bed (#) spending 42% less time reading per session than the average. This was a big shock to us. A lot of us have this preconception that the book industry is kinda powered by the bedside table, and by the almighty trinity of Beach, Bath, and Bed. But this would suggest that at least 2 of those -- Bath time and Bed time -- might not be where people spend as much time reading.\n
  • But where the preconception holds is that it is still the time when *the most people spend time reading. More people get their reading time in during those hours between 8pm and midnight.\nIt is also still where we see people do most of their *buying.\n
  • But where the preconception holds is that it is still the time when *the most people spend time reading. More people get their reading time in during those hours between 8pm and midnight.\nIt is also still where we see people do most of their *buying.\n
  • But where the preconception holds is that it is still the time when *the most people spend time reading. More people get their reading time in during those hours between 8pm and midnight.\nIt is also still where we see people do most of their *buying.\n
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  • The first thing you&amp;#x2019;ll notice is that they don&amp;#x2019;t even sit in our pricing cohorts. And they aren&amp;#x2019;t consumers per se. The freegan is like Dark Matter - they are this vast bulk of downloaders who barely show up on our radar.\n
  • Web is far and away the chosen content consumption platform (#) of the Freegan. ((Talk about that distribution)) Now that&amp;#x2019;s for a number of reasons...\n
  • \n
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  • This is a graph of people who are both ebook *purchasers* and free content consumers. Most ebook buyers read (or at least start) at least 1 free book first. We see them in a few distinct groups.\n# eBook training wheels\n# I heart Jane Austen (and the Brontes and maybe a little tolstoy)\n\n
  • This is a graph of people who are both ebook *purchasers* and free content consumers. Most ebook buyers read (or at least start) at least 1 free book first. We see them in a few distinct groups.\n# eBook training wheels\n# I heart Jane Austen (and the Brontes and maybe a little tolstoy)\n\n
  • # But way at the other end we have these interesting guys we call (#) the Freegans. Most of what they read is free. They actively seek it. They look for new good free stuff.\n\n
  • en we go a little more fine-grained\nFreegans - just some people who can find 10 free books they like. Lots of those. Generally more functional - &amp;#x201C;these are the books I like&amp;#x201D;\nFreegan librarians. Want to have lots of books in their accounts, on their shelves. From them, we get a lot of requests for the ability to categorize their collections, more discovery options...\n# Freegan Hoarders - almost compulsive desire to stuff their library with free books. Even though they&amp;#x2019;re all available any time they want. Even though they could never read them all. In some cases, thousands of books.\n\n
  • en we go a little more fine-grained\nFreegans - just some people who can find 10 free books they like. Lots of those. Generally more functional - &amp;#x201C;these are the books I like&amp;#x201D;\nFreegan librarians. Want to have lots of books in their accounts, on their shelves. From them, we get a lot of requests for the ability to categorize their collections, more discovery options...\n# Freegan Hoarders - almost compulsive desire to stuff their library with free books. Even though they&amp;#x2019;re all available any time they want. Even though they could never read them all. In some cases, thousands of books.\n\n
  • en we go a little more fine-grained\nFreegans - just some people who can find 10 free books they like. Lots of those. Generally more functional - &amp;#x201C;these are the books I like&amp;#x201D;\nFreegan librarians. Want to have lots of books in their accounts, on their shelves. From them, we get a lot of requests for the ability to categorize their collections, more discovery options...\n# Freegan Hoarders - almost compulsive desire to stuff their library with free books. Even though they&amp;#x2019;re all available any time they want. Even though they could never read them all. In some cases, thousands of books.\n\n
  • \n
  • \n\n
  • \n
  • For the first time in a long time, we aren&amp;#x2019;t just thinking about what goes inside books or how they are designed or how they are marketed. We&amp;#x2019;re thinking about the reading experience itself. How can we make that experience easier, more enjoyable.\n
  • And how can we do it while keeping in mind that there are lots of different kinds of people who all have their own definition of what reading is.\n\n
  • When you get down to it, we are fighting for those tiny slices of people&amp;#x2019;s day. The more enjoyable we can make that, the more we can enhance that experience, the better we&amp;#x2019;ll be.\n
  • \n
  • Kobo: What Do eBook Customers Really, Really Want? (Tools of Change 2011)

    1. 1. Michael Tamblyn @mtamblyn
    2. 2. EVP Content, Sales & Merchandising @kobo
    3. 3. 20 minutes
    4. 4. Four users
    5. 5. how we look at readers and reading
    6. 6. and to answer the question:
    7. 7. “What happens when...
    8. 8. ...a group ofreading-obsessed technophiles...
    9. 9. ...get their hands on the richest data set...
    10. 10. ...in the history of the book industry?”
    11. 11. A bit about Kobo
    12. 12. global ebook retailer
    13. 13. 2M+ registered users
    14. 14. 200 countries
    15. 15. 34,300 employees 24,100 employees 170 employees!!
    16. 16. #1!
    17. 17. May 2010 $149
    18. 18. Cloud
    19. 19. obsessed
    20. 20. segments
    21. 21. Geography Reading PlatformPricepoint Tolerance Reading History Lifetime Value Free vs. Paid
    22. 22. can get complicated quickly
    23. 23. vs.
    24. 24. vs.
    25. 25. <$5 80% free
    26. 26. <$5 80% free~$11 100% paid
    27. 27. complicated
    28. 28. 4 users
    29. 29. eInk Reading Machine
    30. 30. eInk Reading Machine Gold-A Kobo2Jun-2010 Fiction100% Paid
    31. 31. eInk Reading Machine Gold-A Kobo2Jun-2010 Fiction100% Paid
    32. 32. eInk Reading Machine Gold-A Most valuable Lifetime Value cohort Kobo2Jun-2010 Fiction100% Paid
    33. 33. eInk Reading Machine Gold-A Most valuable Lifetime Value cohort Kobo2 Cohort GoldJun-2010 Silver Fiction Bronze100% Paid
    34. 34. eInk Reading Machine Gold-A Most valuable Lifetime Value cohort Kobo2 Cohort Gold 1st Day Average 7 orders /Jun-2010 $35 $25 month Silver Fiction Bronze100% Paid
    35. 35. eInk Reading Machine Gold-A Kobo2Jun-2010 Fiction100% Paid
    36. 36. eInk Reading Machine Gold-A Most Productive Sales Channels (% conversion) Kobo2 1. Web 2. Kobo eReaderJun-2010 3. Kobo-powered Readers 4. iPad 5. Android Fiction 6. iPhone100% Paid
    37. 37. eInk Reading Machine Gold-A Kobo2Jun-2010 Fiction100% Paid
    38. 38. eInk Reading Machine Gold-A Kobo2 Purchase frequency is increasingJun-2010 overall. eBook buying is accelerating. Fiction100% Paid
    39. 39. eInk Reading Machine Gold-A A customer who starts in Kobo2 June 2010 buys 44% more in their first month as a customerJun-2010 than a customer who started Fiction Dec 2009.100% Paid
    40. 40. eInk Reading Machine Gold-A Kobo2 A customer joining Nov. 2010 buys 70% more in their firstJun-2010 month than a Dec 2009 customer. Fiction100% Paid
    41. 41. eInk Reading Machine Gold-A Why? Kobo2 Better apps Better devicesJun-2010 Better marketing Fiction More titles Better customers100% Paid
    42. 42. Gold-A Kobo2Jun-2010 Fiction100% Paid
    43. 43. Health Religion Business eInk Reading Machine Gold-A Juvenile Fiction & YA Kobo2Jun-2010 Biography Fiction History Self- Fami help ly100% Paid
    44. 44. Gold-A Kobo2Jun-2010 Fiction100% Paid
    45. 45. Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
    46. 46. Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
    47. 47. Small-screen ReaderBronze-E Largest segment in terms of numbers iPhone Nov-10Romancepaid+free
    48. 48. Small-screen ReaderBronze-E Largest segment in terms of numbers iPhone Cohort Gold Nov-10 SilverRomance Bronzepaid+free
    49. 49. Small-screen ReaderBronze-E Largest segment in terms of numbers iPhone Cohort Gold Nov-10 Silver 1st Day Average 1 order /Romance Bronze $15 $11 monthpaid+free
    50. 50. Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
    51. 51. Small-screen ReaderBronze-E Least Productive Sales Channel (% conversion) iPhone 1. Web 2. Kobo eReader Nov-10 3. Kobo-powered Readers 4. iPad 5. AndroidRomance 6. iPhonepaid+free
    52. 52. Small-screen ReaderBronze-E iPhone Small screen device = Nov-10 lower price-point tolerance.Romancepaid+free
    53. 53. Bronze-E iPhoneNov-10Romance50% paid
    54. 54. Actual Selling Price vs. Purchasing PlatformCan$10.00 8.84 8.53 Can$7.50 7.80 7.92 7.85 7.82 Bronze-E 7.42 6.81 Can$5.00 iPhone P Can$2.50 Nov-10 Can$0 All d der p oid b ne rry iPa kto We Romance o kbe r Rea iPh And Des c oe Bla Kob 50% paid
    55. 55. Actual Selling Price vs. Purchasing PlatformCan$10.00 8.84 8.53 Can$7.50 7.80 7.92 7.85 7.82 Bronze-E 7.42 6.81 Can$5.00 iPhone P Can$2.50 Nov-10 Can$0 All d der p oid b ne rry iPa kto We Romance o kbe r Rea iPh And Des c oe Bla Kob 50% paid
    56. 56. Actual Selling Price vs. Purchasing PlatformCan$10.00 8.84 8.53 Can$7.50 7.80 7.92 7.85 7.82 Bronze-E 7.42 6.81 Can$5.00 iPhone P Can$2.50 Nov-10 Can$0 All d der p oid b ne rry iPa kto We Romance o kbe r Rea iPh And Des c oe Bla Kob 50% paid
    57. 57. Actual Selling Price vs. Purchasing PlatformCan$10.00 8.84 8.53 Can$7.50 7.80 7.92 7.85 7.82 Bronze-E 7.42 6.81 Can$5.00 iPhone P Can$2.50 Nov-10 Can$0 All d der p oid b ne rry iPa kto We Romance o kbe r Rea iPh And Des c oe Bla Kob 50% paid
    58. 58. Actual Selling Price vs. Purchasing PlatformCan$10.00 8.84 8.53 Can$7.50 7.80 7.92 7.85 7.82 Bronze-E 7.42 6.81 Can$5.00 iPhone P Can$2.50 Nov-10 Can$0 All d der p oid b ne rry iPa kto We Romance o kbe r Rea iPh And Des c oe Bla Kob 50% paid
    59. 59. Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
    60. 60. Small-screen ReaderBronze-E iPhone Small screen device = Nov-10 less likely to stick aroundRomancepaid+free
    61. 61. Small-screen ReaderBronze-E iPhone Nov-10 churnRomancepaid+free
    62. 62. Small-screen ReaderBronze-E Platform User Longevity 1. Kobo eReader iPhone 2. Kobo-powered 3rd-party eReader 3. Desktop Nov-10 4. Android 5. WebRomance 6. iPad 7. iPhone 8. Blackberrypaid+free
    63. 63. Small-screen ReaderBronze-E Platform User Longevity 1. Kobo eReader iPhone 2. Kobo-powered 3rd-party eReader 3. Desktop Nov-10 4. Android 5. WebRomance 6. iPad 7. iPhone 8. Blackberrypaid+free
    64. 64. Small-screen ReaderBronze-E Platform User Longevity 1. Kobo eReader iPhone 2. Kobo-powered 3rd-party eReader 3. Desktop Nov-10 4. Android 5. WebRomance 6. iPad 7. iPhone 8. Blackberrypaid+free
    65. 65. Small-screen ReaderBronze-E Platform User Longevity 1. Kobo eReader iPhone 2. Kobo-powered 3rd-party eReader 3. Desktop Nov-10 4. Android 5. WebRomance 6. iPad 7. iPhone 8. Blackberrypaid+free
    66. 66. Small-screen ReaderBronze-E Platform User Longevity 1. Kobo eReader iPhone 2. Kobo-powered 3rd-party eReader 3. Desktop Nov-10 4. Android 5. WebRomance 6. iPad 7. iPhone 8. Blackberrypaid+free
    67. 67. Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
    68. 68. Histori cal Erotica Mystery Small-screen Reader GeneralBronze-E Romance iPhone Nov-10Romance Science Fiction Literarypaid+free
    69. 69. Small-screen ReaderBronze-E iPhone Nov-10Romancepaid+free
    70. 70. iPad SocialiteGold-B iPadDec-10General90% paid
    71. 71. iPad SocialiteGold-B iPadDec-10General90% paid
    72. 72. iPad SocialiteGold-B Not as good as the Reading Machine, but still pretty great. iPadDec-10General90% paid
    73. 73. iPad SocialiteGold-B Not as good as the Reading Machine, but still pretty great. iPad CohortDec-10 Gold SilverGeneral Bronze90% paid
    74. 74. iPad SocialiteGold-B Not as good as the Reading Machine, but still pretty great. iPad CohortDec-10 1st Day Average 4.5 orders / Gold $22 $16 month SilverGeneral Bronze90% paid
    75. 75. iPad SocialiteGold-B iPadDec-10General90% paid
    76. 76. December 2010
    77. 77. (just launched for iPhone too!)
    78. 78. How does social change eReading?
    79. 79. Quite a lot.
    80. 80. 33% more time in app
    81. 81. Reading behaviour atdifferent times of day
    82. 82. Average Time in App vs. “Time of Day” Awards60%45%30%15% 0%-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    83. 83. Average Time in App vs. “Time of Day” Awards60%45%30%15% 0%-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    84. 84. Average Time in App vs. “Time of Day” Awards60% 7-9am45%30%15% 0%-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    85. 85. Average Time in App vs. “Time of Day” Awards60% m m-n o o n -9a 9a 745%30%15% 0%-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    86. 86. Average Time in App vs. “Time of Day” Awards60% m m-n o o n -9a 9a 745% 12 -2pm30%15% 0%-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    87. 87. Average Time in App vs. “Time of Day” Awards60% m m-n o o n -9a 9a 745% 12 -2pm30% 2- 4pm15% 0%-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    88. 88. Average Time in App vs. “Time of Day” Awards60%45%30%15% 0%-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    89. 89. Average Time in App vs. “Time of Day” Awards60%45%30%15% 0%-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    90. 90. Average Time in App vs. “Time of Day” Awards60%45%30%15% 6-8pm 0%-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    91. 91. Average Time in App vs. “Time of Day” Awards60%45%30%15% 6-8pm am 12-1 0%-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    92. 92. Average Time in App vs. “Time of Day” Awards60%45%30%15% 6-8pm am 12-1 8-10pm 0%-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    93. 93. Average Time in App vs. “Time of Day” Awards60%45%30%15% 6-8pm am 12-1 8-10pm0-12pm 0% 1-15%-30%-45%-60% mute ch hift Hour time or Lun yard S Prime e Com Happy ooks f Grave Kill th I Eat B
    94. 94. Bet ter i nB ed Prim etim e Sle epin g In Hap py H ourAfte rno o nR ush Hou r Pla ying Hoo kyI Ea t Bo oks for Lun ch Kill the Com mu te Number of Awards Issued Gra vey ard Shi ft Wit chin gH our
    95. 95. Bet ter i nB ed Prim etim e Sle epin g In Hap py H ourAfte rno o nR ush Hou r Pla ying Hoo kyI Ea t Bo oks for Lun ch Kill the Com mu te Number of Awards Issued Gra vey ard Shi ft Wit chin gH our
    96. 96. 1 Bet ter i nB 0-1 ed Prim 2pm etim e Sle epin g In Hap py H ourAfte rno o nR ush Hou r Pla ying Hoo kyI Ea t Bo oks for Lun ch Kill the Com mu te Number of Awards Issued Gra vey ard Shi ft Wit chin gH our
    97. 97. 1 Bet ter i nB 0-1 ed Prim etim e 8-10 Sle epin g In 2pm pm Hap py H ourAfte rno o nR ush Hou r Pla ying Hoo kyI Ea t Bo oks for Lun ch Kill the Com mu te Number of Awards Issued Gra vey ard Shi ft Wit chin gH our
    98. 98. 8pm-midnightebook shopping primetime
    99. 99. The Freegan
    100. 100. The Freegan*FreeganWebsite Apr-10 Fiction100% free
    101. 101. The Freegan*FreeganWebsite Apr-10 Fiction100% free
    102. 102. The Freegan*Freegan “Below Bronze-F”Website Apr-10 Fiction100% free
    103. 103. The FreeganBronze-FWebsite Apr-10 Fiction100% free
    104. 104. Free Books Accessed The FreeganBronze-FWebsite Apr-10 Web ne roid iPad ed ktop rry der iPho wer kbe a And Des eRe -po Blac Fiction o o Kob Kob100% free
    105. 105. Side-loadingZero investment International
    106. 106. Not everyone who readsfree books is a freegan.
    107. 107. Lots are paygans.
    108. 108. Customers with Free Books The FreeganBronze-FWebsite Apr-10 Fiction e es es es es es es es es im im im im im im im im tim 1t 2t 3t 4t 5t 6t 7t 8t 9+100% free Number of Free Books in Library Customers with FreeBooks
    109. 109. Customers with Free Books eBook Training wheels The FreeganBronze-FWebsite Apr-10 Fiction e es es es es es es es es im im im im im im im im tim 1t 2t 3t 4t 5t 6t 7t 8t 9+100% free Number of Free Books in Library Customers with FreeBooks
    110. 110. Customers with Free Books eBook Training wheels The FreeganBronze-F “I Jane Austen”Website Apr-10 Fiction e es es es es es es es es im im im im im im im im tim 1t 2t 3t 4t 5t 6t 7t 8t 9+100% free Number of Free Books in Library Customers with FreeBooks
    111. 111. Customers with Free Books eBook Training wheels The FreeganBronze-F “I Jane Austen”Website Apr-10 Fiction e es es es es es es es es im im im im im im im im tim 1t 2t 3t 4t 5t 6t 7t 8t 9+100% free Number of Free Books in Library Customers with FreeBooks
    112. 112. Customers with Free Books eBook Training wheels The FreeganBronze-F “I Jane Austen” “Freegans”Website Apr-10 Fiction e es es es es es es es es im im im im im im im im tim 1t 2t 3t 4t 5t 6t 7t 8t 9+100% free Number of Free Books in Library Customers with FreeBooks
    113. 113. 1t im e 2t im es 100% free 3t im es 4t im es 5t im es 6t im esCustomers with FreeBooks 7t im es 8t im es 9-1 4t im es 15 Number of Free Books in Library -25 Customers with Free Books tim 26 es -50 tim 51 es -10 0t Mo im re es tha n1 00 tim es
    114. 114. 1t im e 2t im es 100% free 3t im es 4t im es 5t im es 6t im esCustomers with FreeBooks 7t im es “Freegans” 8t im es 9-1 4t im es 15 Number of Free Books in Library -25 Customers with Free Books tim 26 es -50 tim 51 es -10 0t Mo im re es tha n1 00 tim es
    115. 115. Customers with Free Books Freegan Librarians “Freegans” e es es es es es es es es es es es es im im im im im im im im im tim tim im tim 1t 2t 3t 4t 5t 6t 7t 8t 4t 0t -25 -50 00 9-1 -10 n1 15 26 51 tha Number of Free Books in Library re100% free Mo Customers with FreeBooks
    116. 116. Customers with Free Books Freegan Freegan Librarians Hoarders “Freegans” e es es es es es es es es es es es es im im im im im im im im im tim tim im tim 1t 2t 3t 4t 5t 6t 7t 8t 4t 0t -25 -50 00 9-1 -10 n1 15 26 51 tha Number of Free Books in Library re100% free Mo Customers with FreeBooks
    117. 117. The Freegan*FreeganWebsite Apr-10 Fiction to Mar keting Res istant100% free
    118. 118. Why?
    119. 119. make reading better
    120. 120. know the reader,sales will follow.
    121. 121. Michael Tamblyn | @mtamblyn | mt@kobo.com

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