Turning Over the Reigns

By Michael Drew - Apr 09 , 2008

Who calls the shots at your publishing house, marketing firm, or PR agency?

I hate to even hint at a cliché, but any response other than “our customers” or some variation thereof, comes up short. Because like it or not, the balance of power has officially shifted to the readers. If you’re going to survive the ongoing evolution the book industry is experiencing, the person at the top of your organizational chart is going to have to swallow some pride and relinquish some control to the public.

Unwilling to click the link above for fear it might trigger some unstoppable process that forces you to listen and respond to what readers want? C’mon, now. Technology is pretty powerful, but it’s not that powerful—yet. No, I just read an article about a social networking-based music company called Amie Street, and I wanted to share it with you because I think their mindset is right on target.

As co-founder and CMO Josh Boltuch explains,

A key factor driving the structure of Amie Street was our belief that music is a social experience. Music is about much more than acquisition or accumulation. It’s about the joy of discovering something new and personal, and then being able to share that experience with others.

Replace the words “music is” with the words “books are” and the definition still fits, does it not? So what is it that Amie Street does that’s so evolutionary, and can it be applied to the book industry?

For starters, they let their customers determine the price of the songs. All songs start out free and from there each one’s price increases based on how frequently it’s purchased. And to help foster a much bigger “community initiative,” when someone recommends a song to a friend, that person earns credit towards future purchases.

You could certainly do those same things with books. Can you think of a better way to answer questions about what readers want and how much they’re willing to pay for it?

Me neither. And, of course, the customers feel like they won because they actually played a part in determining their own price. Companies didn’t have to give up this kind of control in the past. Putting the customer in charge was usually nothing more than lip service. They’d throw them the occasional bone, reward them with something like a customer loyalty program, but “B” has always reigned supreme over “A.”

But then technology happened and the Internet appeared and a million competitors popped up willing to work with potential customers in ways you’re not and that’s how the Long Tail keeps getting longer.

Amie Street’s pricing model was only one in a series of strategies that transfer ownership to its customers, but the results are hard to argue with. Within 60 days of implementation:

• New customer enrollment increased 16%
• Average repeat purchases increased 16%
• Overall sales increased 13%

There’s no question the customers call the shots at Amie Street. But who calls the shots at your organization? Are you giving people the input and control they feel they deserve, or are they getting it from someone else?

Questions about improving your customer’s personal experience factor may be directed to Michael R. Drew at the Austin, Texas, headquarters of Promote A Book: 512-858-0040. You can also contact Michael via email at michael@promoteabook.com.