3. 3 questions:
1 2 3
“Why do we care engaging with “How can we best
so much about readers?” measure
success?”
4. 1
“Why do we care so
much about engaging
with readers?”
5. The “why do we care” We don’t have much
question is relatively choice!
easy to answer: Publishing needs to
build a strong consumer
capability to protect
10. The answer to this
question will frame the If we can clearly
responses to the original articulate this purpose ,
three questions: “Why do then we can break our
we care?”; “How do we activity down into
measure success?”; and discrete tasks and set
“How does this impact direct, actionable
the bottom line?”. metrics, against each
one.
11. e.g. Purpose A:
“Our website exists to
sell more books direct
to consumers than
through the trade”
14. Q1. “Why should I start of our sales
care about funnel
conversations
with readers?”
A1. Because it
drives visitors to
our website and
is a low-cost and
key part of
customer
acquisition
process and the
15. Q1. “Why should I start of our sales Q2. “How can we
care about funnel best measure
conversations success?”
with readers?”
A1. Because it
drives visitors to
our website and
is a low-cost and
key part of
customer
acquisition
process and the
16. Q1. “Why should I start of our sales Q2. “How can we
care about funnel best measure
conversations success?”
with readers?”
A2. We measure
A1. Because it and optimise
drives visitors to against
our website and traditional
is a low-cost and eCommerce
key part of metrics: uniques,
customer conversions,
acquisition order value,
process and the abandonment,
20. Q1. “Why should I
care about
conversations
with readers?”
A1. We shouldn’t
– the site isn’t for
readers
21. Q1. “Why should I Q2. “How can we
care about best measure
conversations success?”
with readers?”
A1. We shouldn’t
– the site isn’t for
readers
22. Q1. “Why should I Q2. “How can we trade mailing
care about best measure lists; catalogue
conversations success?” downloads;
with readers?” contact requests
A2. A high % of
A1. We shouldn’t repeat trade
– the site isn’t for visitors (can be
readers achieved through
segmentation like
on the UK HC
site); enabling
and tracking
digital ordering;
23. Q1. “Why should I Q2. “How can we trade mailing
care about best measure lists; catalogue
conversations success?” downloads;
with readers?” contact requests
A2. A high % of Q3. “How will this
A1. We shouldn’t repeat trade affect the bottom
– the site isn’t for visitors (can be line?”
readers achieved through
segmentation like
on the UK HC
site); enabling
and tracking
digital ordering;
24. Q1. “Why should I Q2. “How can we trade mailing
care about best measure lists; catalogue
conversations success?” downloads;
with readers?” contact requests
A2. A high % of Q3. “How will this
A1. We shouldn’t repeat trade affect the bottom
– the site isn’t for visitors (can be line?”
readers achieved through
segmentation like A3. Strong trade
on the UK HC relationships with
site); enabling individual
and tracking customers;
digital ordering; offering timely
25. These two example optimise) success and
“purposes” are clearly engagement.
wrong – but have been However, it is also clear
created to illustrate how that the same site
“purpose” helps define cannot successfully
(and measure and “engage” on both
purposes.
26. Taking a step back, we an author or reader
all know that any choose us when they
publisher now has to have these choices?
compete not just against However, we can also
other publishers, but see this as an
also against Amazon, opportunity to focus on
agents and self- and articulate the stuff
publishing. Why should we are really good at
27. There is a lot of talk choose from between
about competitive them (as an author,
advantage and reader, employee etc).
differentiation, but most Digital activity can’t
publishers still tell you single-handedly solve
their values are “quality the really big problems
and innovation”, and in in publishing, but what
fact one could argue if it could “break out” of
that there isn’t much to the digital ghetto to help
30. e.g. Purpose C:
“Our digital activity
exists to differentiate
Penguin at the most
competitive points in
the publishing value
chain.”
31. With this purpose, all This sounds great, but
digital marketing activity perhaps a bit vague!
(web, social, email, So let’s first identify the
search &c) would only most competitive bits of
exist to deliver publishing, and think
competitive advantage about how our consumer
to Penguin as a whole. activity could create
assets that can be
32. What are the most competitive parts of the publishing
process, the bits where we can really differentiate?
Can’t differentiate on*:
* in terms of corporate publishing rather than
vs. self-publishing
• Editing Can differentiate on:
• Rights
• Production • Sales / distribution
• Design • Promotion / PR
• Systems • Consumer marketing
33. This doesn’t mean we But, the differentiated
ignore the stuff allows us to get a
“undifferentiated” stuff – head start over our
we still have to excel at competitors, and to
this to compete. prove the value that only
34. 3. Do we want to differentiate in
Sales & this area? Can we realistically
achieve it?
distribution 4. What is the ideal outcome?
Some possible answers:
Sales & distribution is
competitive because the shift of
1. By transforming from a B2C
power has moved firmly to the
business into a B2B one by
retailers, who exert this power
executing a diversified sales &
over publishers, who remain in a
distribution strategy created
weak position to challenge.
through a thorough
Questions to ask ourselves here: understanding of the
marketplace; equivalent to a
1. How can we differentiate? P&G or Unilever
2. How can digital help us do
this? 2. A data-driven approach to
understanding pricing,
35. 1. How can we differentiate?
Promotion / 2. How can digital help us do
this?
PR 3. Do we want to differentiate in
this area? Can we realistically
achieve it?
4. What is the ideal outcome?
Promotion and PR is competitive
because there is only so much
broadsheet coverage available,
Some possible answers
with all PRs pitching to
journalists for the (shrinking!)
1. By focusing on coverage in the
space
media that drives sales,
irrespective of prestige or
Questions to ask ourselves here:
format (internet, social,
broadsheet etc).
36. 3. Do we want to differentiate in
Consumer this area? Can we realistically
achieve it?
marketing 4. What is the ideal outcome?
Some possible answers
1. By both understanding our
Consumer marketing is not so
consumers (and what drives
much competitive as it is a “wild
their purchases) and having
west” with everything to play for.
the ability to mobilise them to
There is ample scope for
support publication and
differentiation here, and
conduct market research
Penguin’s brand identity
provides a great head start to
2. A full-throated commitment to
work from.
a portfolio of consumer
marketing activities;
Questions to ask ourselves here:
investment in data and
1. How can we differentiate? analytics; and integrating this
2. How can digital help us do insight back into the business
this?
37. 3. Do we want to differentiate in
Author Care this area? Can we realistically
achieve it?
4. What is the ideal outcome?
This is a hot area of debate as Some possible answers
the recent exposure of varying
digital royalty rates has made 1. Better communication all-
the natural imbalance of how round (including setting
authors are treated even more expectations!); make authors
public. see the value of publishers
and feel very well-published;
Questions to ask ourselves here: the ability to provide best-in-
class care at scale;
1. How can we differentiate?
2. How can digital help us do
2. A “dashboard” showing key
this? data: where the book is in
38. 2. How can digital help us do
Brand this?
3. Do we want to differentiate in
this area? Can we realistically
Brand is differentiation, but it’s achieve it?
also an intangible feeling in the 4. What is the ideal outcome?
mind of our customers (whether Some possible answers
readers, authors or staff) that
makes them choose us over a 1. By publishing better,
competitor. But – in the digital consistently and across the
age – brands are built bottom- business, and making sure this
up rather than top-down, so we activity is recognised and
have to “show, not tell” aligned to the Penguin brand/s
Questions to ask ourselves here: 2. Through excellence in
everything we do, whilst
1. How can we differentiate?
recognising the nuanced
39. 3. Do we want to differentiate in
Acquisition this area? Can we realistically
achieve it?
4. What is the ideal outcome?
Acquisition is perhaps the most Some possible answers
competitive part of publishing.
I’ve kept this until last because 1. By spotting talent earlier; by
the differentiation here really commissioning as well as
comes from the ability to talk acquiring; by making stronger
about all of the preceding points pitches that clearly articulate
(assuming you’ve delivered on the benefits of being
them!) published by Penguin
Questions to ask ourselves here: 2. Consider Andrew Wylie’s
poaching technique: a dossier
1. How can we differentiate? of data outlining weak spots in
2. How can digital help us do
an author’s current publishing.
this?
40. There’s a lot to think returning to the original
about here, and a lot question of purpose:
more work to do, but What is the single
let’s wrap it up by purpose of our digital
46. Q1. “Why should I segment of our
care about audience which
conversations we can
with readers?” extrapolate for
our wider
A1. Because it consumers
gives us the
ability both to
experiment and
to capture
actionable data
for the most
passionate
47. Q1. “Why should I segment of our Q2. “How can we
care about audience which best measure
conversations we can success?”
with readers?” extrapolate for
our wider
A1. Because it consumers
gives us the
ability both to
experiment and
to capture
actionable data
for the most
passionate
48. Q1. “Why should I segment of our Q2. “How can we
care about audience which best measure
conversations we can success?”
with readers?” extrapolate for
our wider A2. Each area of
A1. Because it consumers differentiation
gives us the will have discrete
ability both to tasks that can be
experiment and measured and
to capture optimised.
actionable data
for the most
passionate
49. Q1. “Why should I segment of our Q2. “How can we
care about audience which best measure
conversations we can success?”
with readers?” extrapolate for
our wider A2. Each area of
A1. Because it consumers differentiation
gives us the will have discrete
ability both to tasks that can be
experiment and measured and
to capture optimised.
actionable data
for the most (This is the next
passionate step!)
50. “We need to
develop new
skills in data
analytics, listen
to our readers,
and understand
what they want
and what they
John Makinson
CEO, Penguin
London Book Fair
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