Neal Goff

Seven-and-a-half days of conference programming coming up during 4 days in January

Blog posts have been scarcer for the past couple of months because I’ve been so engaged with a major responsibility: putting together what amounts to 7-1/2 days of conference programming that will be presented on four days next month in New York City.

As most readers of this blog probably know, we’re responsible for the programming of the two-day extravaganza that is Digital Book World. DBW 2013 — taking place on January 16 and 17 at the Hilton New York Hotel — will be the fourth iteration of the event, which aims to explore the commercial challenges facing trade publishing in the digital transition. DBW is not about technology per se; it is about the business problems publishers must cope with in an age of technological change.

DBW’s main two days are divided between morning plenary programming — all 1500+ people in one big room — and afternoon breakouts. We’ll have up to five simultaneous breakout sessions in each of three slots each day. So we have what amounts to 4-1/2 days of programming in the breakouts plus one on the main stage.

Because people really do come from all over the world to attend DBW, we were delighted to agree when they asked us at Publishers Launch Conferences (the conference business I own with Michael Cader) to add a show on each side of theirs to build out a week of programming. (The team at DBW itself are also putting together some pre-conference workshops that will run on Tuesday.)

So on Tuesday, January 15, we’ll do our second annual “Children’s Publishing Goes Digital” conference at the McGraw-Hill Auditorium (put together with the invaluable assistance of our Conference Chair and close friend, Lorraine Shanley of Market Partners). And on Friday, January 18, we’re presenting (in conjunction with the DBW team) a new program called “Authors Launch“, a full day of marketing advice for publisher-published authors. (Self-published authors are welcome and will learn a lot, but the program is framed for authors who are working with publishers, not looking for ways to avoid them.)

Programming the “Children’s Publishing Goes Digital” show revealed what we think will be the most important theme in the children’s book space for the next few years: the development of  digital “platforms” that, like subscription offerings (which some, but not all of them, clearly are), will “capture” consumers and make them much less likely to get ebooks and other digital media from outside of it. The list of platform aspirants in this space is long and varied: Storia from Scholastic; RRKidz from Reading Rainbow (the TV show brand); Poptropica from Pearson (which launched Wimpy Kid before it was a book); Magic Town; Disney; Capstone; and Brain Hive. All of them are presenting, as well as NOOK, which, like Amazon Kindle, has announced parental controls on its platform that encourage parents to manage their kids’ reading experience there.

There are other big issues in children’s publishing, particularly the creation of original IP by publishers so they can better exploit the licensing opportunities that follow in the wake of successful kids’ books. We’ll have data presentations from Bowker and from Peter Hildick-Smith of Codex to help our audience understand how kids books are found and selected outside the bookstore in today’s environment.

But we know that the digital discovery and purchase routines will be markedly affected by the platforms as they establish themselves. Publishers are faced with an interesting conundrum. They can’t reach the audiences that are loyal to a platform without going through the platform. But it is the presence of many publishers’ books that strengthens the attraction of the platform and, once it gains critical mass, the value of the content to it (and probably what it will be willing to pay for the content) is reduced. So publishers licensing content to these platforms may be strengthening beasts that will ultimately eat them. I think the roundtable conversation Lorraine and I will lead at the end of the day, which will include publishers Karen Lotz of Candlewick, Barbara Marcus of Random House, and Kate Wilson of Nosy Crow, will have interesting things to say about that paradox.

We’ve developed some “traditions” in the four years we’ve been doing Digital Book World. As we’ve done the past two years, the plenary sessions will open on Tuesday with the “CEOs’ view of the future” panel organized and moderated by David Nussbaum, the CEO of DBW’s owner F+W Media and the man who really dreamed up the idea of this conference. David will be joined this year by Marcus Leaver of Quarto, Karen Lotz of Candlewick, and Gary Gentel of Houghton Mifflin Harcourt. And Michael Cader and I will — as we have every year at DBW — moderate a panel to close the plenaries, “looking back and looking forward” with agent Simon Lipskar of Writers House; Harper’s new Chief Digital Officer, Chantal Restivo-Alessi, and Osprey CEO Rebecca Smart.

Among the presenters on the main stage who will be unlike what our audiences usually hear at a digital publishing conference will be Teddy Goff, the digital director for the Obama campaign, who will talk about targeting and marketing techniques that might serve us well in the publishing world; Ben Evans of Enders Analysis in London, who will tell us how publishing fits into the strategies of the big tech companies (Amazon, Apple, Facebook, Google, and Microsoft) that he tracks regularly*; ex-Macmillan president and now private equity investor Brian Napack, talking with Michael Cader about the investment climate in publishing; and Michael D. Smith, Professor of Information Technology and Marketing from Carnegie-Mellon, talking about a study he and his colleagues have done on the real commercial impact of piracy.

(We’ve also scheduled a breakout session for Teddy Goff so he can talk more about the Obama campaign for those in attendance who want to learn more of its lessons to apply.)

We’re also delighted to have gotten Robert Oeste, Senior Programmer and Analyst from Johns Hopkins University Press, to deliver his wonderfully insightful, entertaining, and informative presentation on XML, the subject so many of us in publishing need to understand better than we do. And we will after he’s done. (We’re also giving Oeste a break-out slot to talk about metadata which I’ll bet a lot of our audience will choose to attend after they’ve heard him on XML.)

(*Late edit: Ben Evans had to cancel.)

Some authors have had remarkable success without help from publishers in the past year, but few or none more than Hugh Howey, the author of “Wool”, who has just signed a groundbreaking print-only deal for the US with Simon & Schuster. His dystopian futurist novel has sold hundreds of thousands of self-published ebook copies and rights all over the world and to Hollywood. We’ll have a chat with Howey about how he did it and we’ll be joined by his agent, Kristin Nelson, for that dialogue. Kristin will stick around to join a panel of other agents (Jay Mandel of William Morris Endeavor, Steve Axelrod, and Jane Dystel from Dystel & Goderich) to talk about “Straddling the Models”: authors who work with publishers but are also doing some things on their own.

We will have several panels addressing the challenges of discovery and discoverability from different angles. One called “Closing the New Book Discovery Gap” teams Patrick Brown of Goodreads with three publishing marketers — Matt Baldacci of Macmillan, Angela Tribelli of HarperCollins, and Rachel Chou of Open Road — and is chaired by Peter Hildick-Smith. That will focus on what publishers can do with metadata and digital marketing to make it more likely their titles will get “found”. Barbara Genco of Library Journal will share data on library patron behaviors and then helm a panel discussion with Baker & Taylor, 3M, Darien Public Library, and Random House exploring the role of libraries in driving book discovery and sales. Another session called “Making Content Searchable, Findable, and Shareable” introduces three new propositions from Matt MacInnis of Inkling, Linda Holliday of Citia, and Patricia Payton of Bowker, along with SEO expert Gary Price of INFODocket. Publishing veteran Neal Goff (who is also the proud father of Obama’s digital director) will moderate that one. MacInnis, Holliday, and Payton offer services that will help publishers improve the search for their books. Price will talk knowledgeably about how the search engines will react to these stimuli.

We’re covering new business model experimentation (with Evan Ratliff of The Atavist, Brendan Cahill of Nature Share, Todd McGarity of Hachette, and Chris Bauerle of Sourcebooks) where publishers discuss ways to generate revenue that are not the old-fashioned ones. We’ll underscore the point that we’re about changes caused by technology rather than being about technology with our “Changing Retail Marketplace” panel, featuring publishers and wholesalers talking about the growth of special sales (through retailers that aren’t bookstores and other non-retail channels).

The future for illustrated books will be discussed by a panel with a big stake in how it goes: John Donatich of Yale University Press, Michael Jacobs of Abrams, Marcus Leaver of Quarto, and JP Leventhal of Black Dog & Leventhal. Two publishers who have invested in Hollywood — Brendan Dineen of Macmillan and Pete Harris of Penguin — will talk about the synergies between publishing and the movies with consultant Swanna McNair of Creative Conduit.

We will have major US publishers and Ingram talking about exports: developments in the export market for books — print and digital. And we’ll have some non-US publishers joining Tina Pohlman of Open Road and Patricia Arancibia of Barnes & Noble talking about imports: non-US publishers using the digital transition to get a foothold in the US market.

One session I think has been needed but never done before is called “Clearing the Path” and it is about eliminating the obstacles to global ebook sales. That one will start with a presentation by Nathan Maharaj and Ashleigh Gardner of Kobo where they will enumerate all the contractual and procedural reasons why ebooks are just not available for sale in markets they could reach. And then Kobo will join a panel conversation with Joe Mangan of Perseus and agent Brian Defiore to talk about why those barriers exist and what might be done in the future to remove them.

Oh, yes, there’s much much more: audience-centric (what I call “vertical”) publishing; the changing role of editors; the evolving author-publisher relationship; and a conversation about the “gamification” of children’s books. David Houle, the futurist and Sourcebook author who wowed the DBW 2012 audience, will return with his Sourcebooks editor, Stephanie Bowen, to discuss their version of “agile” publishing: getting audience feedback to chunks before publishing a whole book.

We will also do some stuff that is more purely “tech”. We have a panel on “Evolving Standards and Formats” discussing the costs and benefits of EPUB3 adoption, which will be moderated by Bill McCoy of IDPF. Our frequent collaborator Ted Hill will lead a discussion about “The New Publishing IT Department”. Bill Kasdorf of Apex will moderate a discussion about “Cross-Platform Challenges and Opportunities” which is about delivering content to new channels.

But purely tech is the exception at Digital Book World, not the rule.

And purely tech won’t show up at all at Authors Launch on Friday, January 18, the day after Digital Book World.

Authors Launch is what we think is the first all-day marketing seminar aimed squarely at authors with a publisher, not authors trying to work without one. It is pretty universally taken as a given that authors can do more than they ever have before to promote themselves and their books and that publishers should expect and encourage them to do that. But, beyond that, there is very little consensus. What should the publisher do and what should the author do? That question is going to be addressed, in many different ways, throughout the day.

The Authors Launch program covers developing an author brand, author involvement and support for their book’s launch, basic information about keyword search and SEO, use of metrics and analysis, a primer on media training, when and how to hire a publicist or other help, and a special session on making the best use of Goodreads. We’ll cover “audience-centric” marketing, teaching authors to think about their “vertical” — their market — and understand it.

The faculty for Authors Launch includes the most talented marketers and publicists helping authors today: Dan Blank, co-authors MJ Rose and Randy Susan Meyers, journalist Porter Anderson, David Wilk, Meryl Moss, Lucinda Blumenfeld, agent Jason Allen Ashlock, and former Random House digital marketer Pete McCarthy.

We have assembled a group of publishers and an agent to discuss how an author should select the best places to invest their time from the staggering array of choices. (Facebook, Twitter, YouTube, Pinterest, etcetera.) That panel will include agent Jennifer Weltz of The Naggar Agency as well as Matt Baldacci of Macmillan, Rachel Chou of Open Road, Rick Joyce of Perseus, and Kate Stark of Penguin. Matt Schwartz, VP, Director of Digital Marketing and Strategy for the Random House Publishing Group, will conduct the session on metrics.

A feature of both our Kids show on Tuesday and the Author show on Friday are opportunities for the audience to interact with the presenters in smaller groups so each person can get his or her own questions answered. At Kids we’ll do that at lunchtime, seating many of our presenters at tables with a sign carrying their name so our attendees can sit with them and engage. At Authors Launch, we’ll be conducting rounds of workshops, crafted so that the authors can get help in their own vertical (genre fiction, literary fiction, topical non-fiction, juvies, and so forth), and on the topics of greatest need for them.

We are sure the week of January 15-18 will prove to be an energizing and stimulating one for all of us living in the book publishing world. We hope you’ll join us.

Digital Book World Week | January 15-18, 2013

Children’s Publishing Goes Digital | Tuesday, January 15, McGraw-Hill Auditorium
DBW Pre-Conference Workshops | Tuesday, January 15, Hilton New York Hotel
Digital Book World Conference + Expo | January 16-17, Hilton New York Hotel
Authors Launch | Friday, January 18, Hilton New York Hotel


Publishers better start using their scale to price better, and soon!

It was just about two years ago that I appeared on a panel at a meeting of agents with, among others, Macmillan CEO John Sargent and Sargent made the point that maintaining ebook pricing and margins was one of the critical challenges facing publishers. Ebook sales were still hovering around one percent of the business. Or maybe two. Nowhere near five. Sargent was prescient.

It was about six months ago that I did a couple of posts on direct marketing techniques. I engaged a publishing friend named Neal Goff, whose background is mostly outside of trade books, to help me with those. I had him walk me through some fundamentals because I didn’t know them and, I feared, neither did the trade houses that were now — because of agency — required to set prices on their own books without the requisite expertise.

It was only last week that Random House announced it was shifting to agency pricing and I said I hoped they would be more ambitious about experimentation with price than their competitors in the arena had been.

All of these thoughts came together for me when I read this post on CNET that has two real wake-up calls in it for the big publishers.

One they are increasingly aware of: very cheap ebooks are selling very well and, with at least two major bestseller lists (The New York Times and USA Today) now counting ebook sales in units for their rankings, there is a real threat that the established business at established price points could be chased from the biggest market-maker there is. (It is important to note that the Times and USA Today methodologies are still a bit opaque and it is not clear how lower-price books are weighted. Some clear successes in the low-price realm haven’t shown up yet.)

The other point is more subtle. Individuals and little publishers are fiddling with price in ways to maximize bestseller positioning and revenues. The rules are complicated. Both Amazon and Barnes & Noble have programs that reward pricing above $2.99 by paying higher royalties. But it would certainly appear that there are many consumers who are limiting their shopping for ebooks to those that cost 99 cents or below. So some authors have learned that cutting their price increases unit sales to put them on a bestseller list, then raising their price results in more revenue. Apparently one very useful strategy for revenue maximization is to shuttle between prices.

The point that “cutting price boosts sales” isn’t exactly surprising, and it also isn’t exactly news. J.A. Konrath, perhaps the first established author to really start raking in shekels self-publishing through Amazon, has been experimenting with pricing and proving this point for a long time. Konrath’s data was charted for clarity by blogger Dave Slusher a few months ago. Konrath’s work and Slusher’s analysis of it further emphasizes the central point Neal Goff made to us. Experimentation matters. (Neal called it “testing.”)

Another author has demonstrated that cutting price is important, and promoting lower prices is also important.

Although I have heard one major publishing CEO suggest that the house is doing some fiddling with pricing, there was no suggestion there of controlled and monitored experimentation. And I believe it is safe to say, without doing any research, that no major publisher is doing that on a consistent and persistent basis, let alone algorithmically-programmed price management such as the major ebook retailers almost certainly do.

There is another hugely ironic point buried in the CNET story. It is built around the work of an author named Christopher Smith, who has mastered the shuttle-pricing technique. Turns out Smith has a new fan named Stephen King. King, of course, has not only published successfully with major houses for decades, he was one of the first great ebook experimenters around the turn of the century when he tried to do author-direct publishing of ebooks before there was a market. King’s blurb for Smith has been very helpful to the lesser-known, lower-priced author.

Might Smith return the favor for King by teaching him the revenue-maximization techniques he’s developed so King can get back into the self-publishing experimentation game? I think that possibility encapsulates the major publishers’ biggest nightmare. Publishers are going to have a devil of a time defending their 25% royalty rate into the future, which just feels intuitively unfair to authors. They can get away with it for the time being because print sales still matter. But they won’t for long and if publishers don’t use their scale to do a better job managing dynamic pricing to extract the maximum revenue from ebook sales than an author might do on his or her own, the challenge of retaining their top talent will become even more difficult.

There is a reasonable suggestion that publishers should be making in a hurry about bestseller lists in the ebook era. In print, books are separated by format (hardcover, trade paperback, mass-market) by The Times and identified by format by USA Today  so that apples-to-apples comparisons are possible for consumers. It is really a stacked deck to rank on unit sales alone any book at 99 cents and Ken Follett’s bestseller “Fall of Giants”  at $19.99. Format in print creates a reasonable proxy for price. I think price-tiered bestseller lists would be a stretch, but going to the movie studio “box office” concept would not. Publishers, while they still have clout as advertisers in media that promote bestseller lists, should suggest a “units times price” ranking as one that provides a more useful comparison for many consumers.


More about direct response basics: testing, testing, testing

This is the second post based on our recent conversation with Neal Goff, a longtime publishing executive with extensive experience with direct response who is now consulting to publishers through his firm, Egremont Associates. Because we believe that trade publishers have to become B2C marketers like they have never been before, we think it is important to take on board the fundamentals of managing contact with consumers. Neal is explaining them to us, and we’re trying to pass that understanding along.

In the first post, we wrote about the importance of name gathering, the data that should be captured (recency, frequency, monetization, and affinity) and the challenges publishers might expect to face putting their marketing database together. In this one we’re going to say more about what seems to be Neal’s favorite subject: testing.

By the simple device of changing one element of an emailing effort, one can learn which choice of that element produces a better result. But you must change one element, not more than one. If you change more than one, you wouldn’t know to which element to attribute any noticeable change.

There are three major components of any mailing that can be tested: the list, the “creative”, and the “offer.”

The list is the names you choose to mail to, which is comprised of the group you selected from (recent purchasers, or recent purchasers of a particular book, or people who said “send me material about this author”) and the selection criteria you used to pull the names from that list (males, or people in urban zip codes, or people who had spent more than $100 in the past year.)

The “creative” is the emailing itself. In the old days, that would include the envelope (windowed or solid, red or blue); in the email world it certainly includes the “subject line” of the email. Of course, it also includes the wording of the email and its presentation: headlines, graphics, etc. It includes the “from line”: does the email come from a person or the company? (Neal says it’s generally more effective if the email is signed by a person at the bottom, but that’s not necessarily what you want to show to get the email opened.) You can test a short email against a long one. And you can test the impact of HTML email against plain text.

The “offer” is what you are putting forward to the customer for an action. Historically, the action being sought was a purchase, and the offer might include a sweetener — a discount, for example. In an online context, it might be something else, like suggesting that the recipient come back with a request for a free chapter, or that the recipient offer their testimonial for the author or the book, or that the recipient register at a web site to stay in touch with the author or the publisher or the subject.

Neal argued strenuously that there should be a testing component to every mailing. He gave us a history lesson that dramatically underscored the advantages of the new email world. When direct response mailings were packages in envelopes, there was, of course, a significant cost for each piece dropped. Mailings would cost often 35 to 75 cents each — or, in marketing parlance, $350 to $750 per thousand pieces mailed — including the unavoidable cost of postage. For reasons that direct marketers could only hypothesize about but were borne out by experience, mailings tended to be most effective in January and July, with less activity occurring in between. And because the cost of mailing was so high, lists were rigorously “tested” before being “rolled out.”

But the process of mailing, getting response, and analyzing response was quite time-consuming. It took a minimum of weeks; sometimes it took months. Incorporating the results of the testing —  to change the list, creative, or offer — would then occur six or 12 months later.

Emailings deliver results within days, if not hours. Reflecting what is learned from a mailing in a new mailing takes days, not weeks or months. That’s why Neal believes that the testing regime should be continuous.

Neal also taught us an old direct mail principle: TIOLI. That’s “take it or leave it” and it refers to the belief that there should always be a simple offer with one choice: usually buy or not. Now, this violated one of Shatzkin’s First Laws of sales, which is “always give the customer a choice of answers, one of which is not ‘no'”. “Red or green?” “One dozen or two dozen?” Of course, this law was formulated for a face-to-face selling situation (the kind I’m more familiar with). Neal saw the logic of that and agreed that direct response in the email world might enable a back-and-forth that would have been impossible in the snail mail world. His response was predictable.

“It’s testable,” he said.

Neal also wanted to make the point that just because emailing doesn’t cost any cash, that doesn’t mean that mailings are “free.” They’re not, because every emailing will result in some number of your names “unsubscribing”, or revoking the permission they had granted for you to mail to them. (We see this at The Shatzkin Files. Most of our posts result in some “unsubscribes” from our mailing list, although there are always more new subscribers than unsubscribes.) As Neal pointed out, all your names have a “lifetime value”: the average number of dollars you’d expect to get out of them in the fullness of time. If you mail to 100,000 names and 2% unsubscribe, you’ve lost their lifetime value. If they each had a lifetime value of $25, you’re losing 2% of that, or 50 cents per person on your list. That’s a “cost” of $500 per 1000 mailed!

In other words, don’t casually spam your lists! And rigorously measure the cost of your unsubscribes.

These two posts are really surface-scratchers, but they spell out the basics every publisher should take on board today. If a publisher isn’t already pulling together the names it has into a marketing database, creating a way to capture responses and sales information and tie them to the names, building their list of names creatively and aggressively every way they can, and beginning a program of rigorously-monitored communication with those names, they’re behind where they should be. They need a dedicated and focused effort monitored by top management.

These posts have not touched on many complex subjects publishers will face once they start this effort. As one of the comments on the first post has already said, Amazon has more consumer names, and more information about the books they want, than anybody. All of the other online booksellers will have theirs too. Authors are aware that they should own names and many big authors already have a lot of them. There are complex negotiations in everybody’s future about how those names can be used and shared to everybody’s advantage. A publisher will only be a factor in that conversation if it has its own well-structured and robust marketing database.

Bookstore shelfspace will continue to reduce. Publishers can’t stop that. Amazon will continue to dominate the business of selling books online to consumers and publishers can’t stop that. But publishers can stop the sheer waste of customer contact and outreach, which includes placing into many hands printed books that could carry URLs and mailing list solicitations and offers on them. It is past time to start building equity with what has always been thrown away.


Learning what every publisher needs to know these days about direct response

Until his knee gave out a couple of years ago, I used to run regularly with a Big Six C-level executive. In about 2007 I told him I thought all the big publishers needed, but lacked, a complete and thought-through email list compilation and marketing strategy and policy. I suggested we could help his company by looking into that and designing one. (Consultants dream up ideas like this that require both outside expertise and extra hands and feet because that’s how we get work.)

My pitch got me nowhere.

In the intervening years I have become increasingly convinced that collecting names and using them right is now mission-critical for all publishers and most critical, and most difficult, for general trade publishers. And from what I can see, it isn’t getting the attention it should from anybody. (I’ll be delighted to get comments telling me I’m wrong, but I’ll bet they come only from very small publishers or thoroughly vertical ones.)

This is not my field. I know a lot about the traditional book supply chain, with first-hand experience dealing with every part of it. But my knowledge of direct response principles, starting with list-building and maintenance, is mid-level amateur. So I did what I would have done if my running buddy had responded positively to my suggestion that we help: I engaged a very smart person I know is a real expert on direct response to help me learn and think through what publishers need to learn and do. This post and at least one more will share that knowledge.

The smart person is Neal Goff, owner of Egremont Associates, most recently the CEO of My Weekly Reader Publishing. Neal has been applying direct marketing expertise in executive positions at Book-of-the-Month Club, Time-Life Books, Prentice Hall Direct, and Scholastic Library (formerly Grolier) Publishing for large chunks of the past three decades.

I started out with Neal declaring my assumption that publishers can make use of names they gather in at least three ways:

1. They can sell books to them.

2. They can use them for marketing, to spread the word about a book.

3. They can enlist them to be part of a community, interacting with you and others you gather, for the collective value (informational, monetary, curative, content-generating) the community can provide.

For openers, I asked Neal: if we want to help a publisher, where would we start?

Before he would tackle that question, Neal wanted me to understand a couple of very basic things about what is needed in a marketing database.

Obviously, we want to build a database that has all the consumers (millions, so the database has to be able to handle lots of them) we’ll be tracking and all the information about them by which we will ultimately want to “select” their names in the future. Neal emphasized that the most valuable information about them will be derived from their “actions” (when they click or buy or request information), much more than from our own (when we mail or post or offer.) And what we most want to know about those actions is summarized as “RFM” — recency, frequency, and monetary value — plus affinity, which is the similarity between what we’re selling and what they’ve bought before.

Recency refers to “the last time they did something.”

Frequency refers to “how often they’ve done something” (particularly when they do something positive, like buy a book from us).

Monetary value refers to “how much they’ve spent with us.”

Tracking affinity may require some work. Our fulfillment system knows exactly what they’ve bought from us title by title, but this information won’t be terribly useful if, every time we do a promotion, we have to go into our database and select the names of our book-buyers, one title at a time. That information has great value, though, if we aggregate our customers into meaningful groups, like those who bought a photography book or a military history title or a romance novel.

This means that transactiondata is critical. Neal explained that most publishers, particularly trade publishers, don’t necessarily have easy ways to capture individual customer transaction data in a marketing database. That may require a bridge of some sort to be built between your fulfillment systems, which capture the data necessary to complete transactions, and your marketing database, in which you want to aggregate fulfillment data in order to make it more useful selecting names for future outreach. That includes the affinity grouping described above and also such information as how much a customer has spent with you in the last six months.

Knowing that, one is equipped to start thinking about gathering names.The first step is to round up all the names you already have and put them together in one database, capturing the data you have about them in a consistent way. The next step is to establish procedures for collecting more names. All of this should be done with future selection criteria in mind which requires you to start thinking immediately about what the meaningful segments within your customer base are likely to be.

Every publisher already has a lot of names. People who have purchased from the publisher previously will have provided contact information, for confirmation purposes at least. People will have contacted the publisher for customer service, inquiries, or to sign up for newsletters or alerts.

But, often, the publisher will not have requested the necessary “permission” from the consumer to use their name for email marketing contact. (Seth Godin has been making this point for a very long time. He invented the term “permission marketing.”) The task of collecting and collating the names that are already in the house’s possession will provide a painful lesson in how much good customer information has been wasted because permission to contact was not secured when the name was collected. That lesson needs to be applied to the publisher’s future efforts.

Neal explained that you want to set yourself up to get permission from people as early as possible. On all purchase and customer service forms, when you collect email addresses, you have to include the option for people to choose to stay connected to you. You invite your contacts to check a box saying “keep me informed of other books you publish ‘on this subject’ or ‘by this author’ or ‘which will be of interest to me.'” You want to word your permission statement so that it doesn’t scare your customers into thinking you’ll be spamming them all the time, while at the same time keeping the wording broad enough that you don’t unwittingly cut yourself off from future marketing opportunities.

He also pointed out a paradox. The higher you set the permission hurdle, the fewer people you’ll get to give you permission but the higher the quality of that group will be. So if you make people “uncheck” a box to prevent permission, you’ll get more permissions. But if you make people “check” a box to grant permission, you’ll probably be more successful engaging the ones who grant it.

This took me back to a belief I held even before Neal started explaining the basics. Most publishers’ efforts to harvest email addresses have been weak and underthought (which isn’t surprising if there is no active plan to use the names). Can publishers create better reasons for the book’s consumer to engage the publisher? Can the publisher offer free additional content, for example, or notifications of updates (most likely to apply to non-fiction, of course), or a web site that offers additional value at which registration might be captured? Capturing the name and email address of somebody inquiring about a book or even one purchasing a book is all well and good, but wouldn’t those who signed up after already owning the book be that much more likely to be candidates for future engagement?

So where a publisher has to begin is to gather the names they already have, which are buried in nooks and silos around the company, tag them for where they came from and by the kind of “permission” to use them that exists, and work out how to add the additional contacts made with those people, especially including all transaction data, to the database.

In the next post based on Neal Goff’s direct response knowledge, we’ll talk about using the names, including how to act on Neal’s point that many things are “testable”, and that every customer outreach presents a valuable opportunity to test something. And we’ll explain why even though sending email is “free”, mailing to your free list too often or with bad execution can actually cost you money.

Here’s an unrelated postscript. We’re putting together a database of enhanced ebooks because we think the world needs one (at least temporarily.) Our newest teammate, Chesalon Piccione, has been doing the work on this and has posted on the E2BU blog about her efforts and what she’s learning by looking at the aggregation. It will take us a little while to wrestle the database itself into something postable, but we’re working on it. In the meantime, if you’ve got an enhanced ebook project, send Chess an email ([email protected]) and let her know so she can include it. A list of the data points we need is in the linked post.