This document outlines a presentation about new ways to understand shifting book sales channels using consumer data. It discusses how consumer data can be used at different stages of the publishing process from development to marketing. The presenters provide examples of essential consumer facts, key trends, and ways to dive deeper into the data to solve specific business problems for marketing and sales professionals. They demonstrate how to analyze consumer data for genres, formats, demographics, purchase behaviors and more.

1. & Present: New Ways to Understand Shifting Book Sales Channels April 7, 2011

2. James Howitt–Director of Publishing Services, Bowker James oversees the client relationship of a host of Bowker business intelligence services, including the PubTrack consumer research panel reaching annually over 40,000 ‘e’ and ‘p’ book consumers. In addition to being involved in the consumer research panel, he oversees sales data collection and analytics tools for the higher education and trade book markets for Bowker. Before his current position James served for Nielsen BookScan UK and US managing client relationships with Point of Sale data. Ted Hill-President, THA Consulting With over 25 years experience in the publishing industry, Ted has launched dozens of new businesses and business initiatives. As a business development consultant with deep knowledge of the publishing and information industries Ted is a frequent speaker at industry events on the subject of publishing technology. 2 Presenters

3. Agenda Introduction to consumer data Background on the best practices Introduction to howbook consumer data is used sales and marketing professionals Essential facts Key trends Diving deeper

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15. Tracking customers across different types of accounts Projecting Impacts of shifts in consumer behavior on product lines Projecting growth/decline based of categories based on demographic trends Understanding why titles were bought when Identify price paid per unit Identifying lifetime value of customers Selecting comp titles based on reader demographics Understanding the reasons for purchase and purchase intent Field Testing Market basket analysis Identifying new opportunities Diving into book behavior Usability Studies Industry Key Performance Indicators Consumer Bookshelves Advertising and Social Media Book Awareness Purchase Metrics Standard Reports All Custom Reports Pricing Strategies Genre Profiles Quarterly Consumer Landscape – demographics, book, channel, genre, behavior trends report Purchase Dynamics and Influences -Planned vs. Impulse Channel Analysis -Market Share Customer Value/Migration Occasions/Shopping Custom Reports Book Cover and Package Design - Cover Image Testing - Page Layout Testing - Product Design Author Profiles BISG’s Consumer Attitudes Toward E-book Reading Study Book Lover Panels Campaign Level Custom Projects Character Profiles BISG’s Student Attitudes Toward Content in Higher Education Study Customer Satisfaction Series Profiles Usability Studies - Web Testing - App Testing - Page Flip Technology - Product Usability

16. Tracking customers across different types of accounts Projecting growth/decline based of categories based on demographic trends Using Consumer Data Projecting Impacts of shifts in consumer behavior on product lines Development Planning Acquisitions Marketing Sales Understanding why titles were bought when Identify price paid per unit Identifying lifetime value of customers Selecting comp titles based on reader demographics Understanding the reasons for purchase and purchase intent Field Testing Market basket analysis Identifying new opportunities Diving into book behavior Usability Studies Industry Key Performance Indicators Consumer Bookshelves Advertising and Social Media Book Awareness Purchase Metrics Standard Reports All Custom Reports Pricing Strategies Genre Profiles Quarterly Consumer Landscape – demographics, book, channel, genre, behavior trends report Purchase Dynamics and Influences -Planned vs. Impulse Channel Analysis -Market Share Customer Value/Migration Occasions/Shopping Book Cover and Package Design - Cover Image Testing - Page Layout Testing - Product Design Custom Reports Author Profiles BISG’s Consumer Attitudes Toward E-book Reading Study Book Lover Panels Campaign Level Custom Projects Character Profiles BISG’s Student Attitudes Toward Content in Higher Education Study Customer Satisfaction Usability Studies - Web Testing - App Testing - Page Flip Technology - Product Usability Series Profiles

17. Balancing the art and science of publishing

18. Background on the best practices “In a world awash in data, we need to know what’s essential and what’s a distraction.” -Publishing Executive

20. 6,000 US book buyers per month (starting Jan 2011)

21. Selected according to Age, Gender, Income, Household size, and location balanced to US Census

22. Representing an annual view of 250,000 book purchases and 90,000 shopping occasions

23. All purchases collected at ISBN level using Bowker’s Books in Print Web Services

24. Online survey conducted monthly

25. Ages 13 & older

26. 97% confidence rating

28. Introduction to consumer data New technologies are changing traditional publishing practices Consumer data is rapidly becoming an essential tool for all stages of the publishing process Reveals who buys books and why they choose the titles they buy It’s utility varies depending on the job and business goals of the person using it The value comes from knowing the essential facts following key trends, and diving deeper into the data to solve specific business problems

29. Consumer data validates & provides context

30. Using book consumer data Understand the essential facts about book consumers Follow key trends in how they are changing who and what they buy Know how and when to dive deeper into the data to solve business problems

31. Understand the essential facts “We keep our finger on the pulse with POS data. Then we use consumer data to tell us who’s buying what and why?” -Data Analyst

32. Understand the essential facts

33. Essential facts for marketing How channel customer demographics, and motivations to buy differ from one genre or category to another and from one account to another How average selling price and format preferences for books differ from one channel to another Factors that influence purchase decisions or where different demographic groups learn about new titles

34. Essential facts for sales How the demographic profile of the consumer who buys a book at Target differs from the typical Wal-Mart consumer or from the consumers at one of the large book chains For which genres and categories is in-store display most important The best times of year to sell to a particular group of consumers

35. Who is the graphic novel buyer?Full Year 2010 – Books Purchased

36. Who is the graphic novel buyer?Full Year 2010 – Books Purchased

37. Who is the graphic novel buyer?Full Year 2010 – Books Purchased

38. Where are they shopping? Full Year 2010 – Books Purchased

39. What formats are they buying? Full Year 2010 – Books Purchased

40. Why do they purchase? Full Year 2010 – Books Purchased

41. How do they become aware? Full Year 2010 – Books Purchased

42. How impulsive are fiction buyers? Full Year 2010 – Books Purchased

43. Let’s break if we want to

44. Follow key trends “We’ve always assume that trade paperbacks are bought by Gen Xers and Gen Ys because they’re cheaper, but that’s just not the case anymore.” -Marketing Director

45. Follow key trends Are the readers and buyers of your books changing as a group? Will there be more or fewer of them in the future? Are they changing how and where they buy their books? Will it be easier or harder to reach them in the future?

46. Key trends for marketing Both seasonal and long term sales trends Pricing trends--shifts in average selling price, frequency of purchase, purchases per shopping trip, and market baskets All trends related to where consumers learn about books and authors All trends related to who learns about books online (social media, etc.)

47. Key trends for sales Demographic trends for book consumer and sales channels Pricing trends for different formats and genres Shifts in frequency of shopping, purchases per visit or size of the average market basket Seasonal and regional trends Shifts to buying and reading online for different categories

48. How much are consumers paying for young adult titles? 41

49. Ebook buyer trends

50. How are those trends changing?

51. Online influence vs. traditional print/media 44 Bowker PubTrack™ Consumer - © 2010

52. Know when & how to dive deeper “I’d like to know if some readers are just more profitable than others.” -Publisher

53. Know when & how to dive deeper Should we publish more or fewer titles in a category or format? How can we allocate our marketing resources to get the most sales? Are we pricing our books appropriately? Are there ways we can change our publishing strategy to increase revenue or reduce returns? What’s the best cover image, web design, ad copy, or shelf placement for a title?

54. The bulls eye pattern of influence websites, advertising friend, relative teacher, librarian Influence declines significantly with each layer parent child Local bookseller favorite author mass media, the world

55. Where are children’s books purchased? Full year 2010

56. Libraries dominate as a source for books for ages 7 to12

57. Who buys specific fiction genres?Gender of fiction sub-genres based on units in Q4 10 Mystery Espionage

58. Who buys specific fiction genres?Age of fiction sub-genres based on units in Q4 10 Mystery Espionage

59. Who buys specific fiction genres?Income of fiction sub-genres based on units in Q4 10 Mystery Espionage

60. Where do people shop?Gender by outlet based on units in Q4 10

61. Where do people shop?Age by outlet based on units in Q4 10

62. Where do people shop?Income by outlet based on units in Q4 10

63. 56 How do my genres match the outlets that people shop at?

64. The value for marketing “We make a huge number of assumptions and rely on anecdotal information. I’d like to know who really buys what in each account.” -Marketing Executive

65. The value for marketing Need to be able to understand how customers and channels differ so they can allocate resources effectively Can use consumer data to understand where consumers learn about books and what motivates them to purchase Can follow book consumer trends to take advantage of shifts in formats and price points Can use consumer data to confirm that cover designs, price points, and formats fit a particular channel or reader

66. The value for sales “In order for any set of data to be actionable, you have to have a realistic picture of who you’re selling to. You’ve got to track those groups. Our sales guys find it very actionable. You can sit down with Wal-Mart and say ‘Here’s what’s going on with your customers.’” -Vice President, Sales

67. The value of for sales Need the deepest understanding of who shops at the accounts they cover and how that fits with the books they are trying to sell Can use consumer data to support the sales process and have more productive discussions with retail buyers by increasing their confidence that a book is a good match for their customers Can use consumer data to make the most of both long term and seasonal trends Can use consumer profiles to tailor product lines or special promotions to the consumers who shop at a particular account

68. “When it comes to groups of consumers at a particular account, we look at three points: traffic, spending, and frequency of purchase. If 2-3 of these are on an upward trend, then your business is humming. If 2-3 of these are on a downward trend, then your business is tanking.”

69. 62 Questions?

70. Thank you! www.bookconsumer.com PubTrackInfo@bowker.com @bookbuyrinsight