AUDIO: Demand is still strong for audiobooks despite looming ‘digital cliff’

BY TODD HOYT, chief executive officer, eChristian

Much has been made recently in the national news regarding the “fiscal cliff” in front of us as a country. The automatic cuts in spending and increase in taxes has created such a “cliff” that if we go over it, there will be irreparable damage to the U.S. economy.

Much has been made of a “digital cliff” ahead of us as well. The digital cliff represents the thinking that physical products will cease to exist and that the world will only consume digital products and negate the need for physical retail stores.

In retailing, sales data continues to show a migration from physical to digital. This is true in books and true in audio. But there is more to the story beneath the surface.

Audiobooks have some similarities to the issues that face print: cannibalization of physical sales, medium- to higher-priced retail titles facing severe pressure and declining retail shelf space. How do we as a publisher and you as a retailer work to address these important issues?

In the case of audiobooks, the good news is that consumer demand is strong and growing, and audiobook consumers tend to remain among the most active and repeat customers. While the 2012 Audio Publishers Association Sales Survey shows a slight decline in physical sales units, the revenue from CDs is still 53%, more than half of the  audio market. There is and will continue to be a demand for CD audiobooks, and the revenue is healthy. The number-one consumer of audiobooks is the commuter, and most commuters tend to listen through their car CD player.

So, here are some ideas:

Selection. As mentioned, audiobook purchasers tend to consume quite a few audiobooks (and regular books, for that matter). Stock and display a variety of genres and price points that are similar to the print books your store is successful with.

Suggestive selling. The primary reason that a book consumer has not purchased an audiobook is because they hadn’t thought about it. Many people want to read more, but cannot fit it into their day. Listening while driving, exercising or relaxing is another way to engage more of the great content from leading Christian writers.

Sale. Running promotions and sales is a surefire way to attract customers to this category. Retail audiobook pricing has come down in the last several years. In fact, christianaudio has more than 20 titles from popular authors (John Maxwell, John Piper, Stormie Omartian, Beverly Lewis) that start at just $5.98, and most retail-priced titles range from $15 to $25.

Service. Nothing is more important than a knowledgeable salesperson. Most audiobook publishers are willing to sample audiobooks to accounts specifically so salespeople can better understand the distinctives and unique qualities of audiobooks.

Sound. When I am in Christian stores, I tend to hear music from leading Christian artists. Have you ever considered playing an audiobook or audio Bible? Playing a dramatized audio Bible or The Screwtape Letters or the latest releases from Karen Kingsbury, Francis Chan or Max Lucado would show the variety available and introduce a captive audience to another reason to come back into your store.

Audiobooks need to be a part of your overall strategy to retain your customer, grow sales and become a destination.

Sarah Young’s Jesus Calling took the Audio category for eChristian in last year’s Retailers Choice Awards.

Editor’s note: Christian Retailing asked Retailers Choice Awards winners from 2012 to look ahead to the coming year in their particular product category. We share these segments with you online and in print in our January and February issues.

New products releasing for the crucial holiday season

In preparation for the important Christmas season, Christian retailers will want to have in stock key new products. Among the new releases for 2011 are some from best-selling authors and others likely to become children’s favorites.

Gary Chapman—family therapist and New York Times best-selling author of The Five Love Languages—has teamed up with radio host and award-winning author Chris Fabry for the September release A Marriage Carol (978-0-802-40264-6, $14.99, Moody Publishers), a seasonal novella on what it will take to restore a dying marriage. 

Having previously joined forces to bring marriage principles to fiction in his “The Four Seasons of a Marriage” series (Tyndale House Publishers) with Catherine Palmer, Chapman now looks to the Christmas season for the setting in which he and Fabry take readers on a special imaginary visit. 

Characters Marlee and Jacob find themselves in an accident on the way to a lawyer’s office to dissolve their marriage. Marlee walks away from the scene, and with Jacob nowhere to be found, she ends up invited into a home with a door-knocker the shape of a wedding ring. The old man there claims the three golden pots on the hearth inside are used to restore marriages, so Marlee begins a journey through her past, present and future.

Personality editions popular with serious Bible students

Bibles featuring well-known personalities are more than just about big names, as the subcategory is a strong segment for publishers and retailers. Publishers have produced editions featuring Bible-study content from a who’s who of Christian leaders such as Charles Ryrie, C.S. Lewis, Billy Graham, Charles Stanley and Joel Osteen.  

Personality, specialty or name Bibles are “a significant category,” said Bob Sanford, vice president and associate publisher of Thomas Nelson’s Bible group. He estimated that approximately half of Nelson’s overall Bible sales are from the category.

 ‘LONG-STANDING BEST-SELLERS’

Since the 1970s, Nelson has published at least 17 personality Bibles, including John MacArthur’s The MacArthur Study Bible, The Charles F. Stanley Life Principles Bible, Max Lucado’s The Lucado Life Lessons Study Bible, John Maxwell’s The Maxwell Leadership Bible, Jack Hayford’s New Spirit-Filled Life Bible, Richard Lee’s The American Patriot’s Bible and T.D. Jakes’ Holy Bible, Woman Thou Art Loosed! Edition. With combined sales of Nelson’s name Bibles at almost 5 million copies, they are among the publisher’s “long-standing best-sellers,” Sanford said.

Web Copy That Sells: The Revolutionary Formula for Creating Killer Copy Every Time  

by Maria Veloso (Amacom)

 Of course, Christian books affect my business the most, but this is the one that has made the most significant difference for my company in the past year.

It was recommended to me by Dale Anderson and John Fallahee at AMG Publishers. They said: “If you follow Veloso’s steps, your emails will double their sales.” 

I admit, I was skeptical, but I bought the book and implemented Veloso’s principles. Right away, our emails brought in two to five times more business.

Then I started using the techniques in business correspondence and printed ads. Again our sales increased dramatically.

 Veloso says that almost anyone can write better Web copy and better emails, even if they aren’t naturally good writers. She lays out several steps to doing this. One of the biggest mistakes people make is to forget the emotional part of the sale. 

In a nutshell, she helps you discipline your writing techniques: What is the customer’s problem? What are the painful consequences of that problem? Why hasn’t that problem been solved already? What does your product have or do that solves the problem and why is it the best? 

We own several copies of Web Copy That Sells and wouldn’t write an email or a Web page without it. Even though fewer people are opening emails this year, it doesn’t matter: Veloso’s copywriting technique increased responses and our sales went up.

Echo smartpen (Livescribe)

I’m not an early adopter. I’m a busy person who doesn’t have time to mess with new gadgets. I hate facing a long learning curve.

But Livescribe is so easy to use, it can be functional in just five minutes. The instructions that come in the box couldn’t be easier. (Can you tap on a square that says “Tap Here”?)

Livescribe is perfect for people who like to take handwritten notes, and yet want them on a computer to save and search them later. I am often in meetings where notetaking via laptop would be rude, so Livescribe is perfect for this. 

No scanner is needed. I simply write on the special dot paper—it comes in a journal like Moleskine or a less expensive spiral-bound notebook. Then, connect the pen to the computer and the page automatically shows up. This page can be saved to your computer, emailed, sent to Evernote, posted on Facebook. And yes, it does handwriting recognition. Text is searchable.  

Best yet, you can go back later to that same page and add notes in the margin. Next time you connect your pen to the computer, it will update that page. No need to search for the page and delete it first.

Why you must have a good-looking Web site

Even if you don't plan to do much Internet selling, an appealing online presence is absolutely vital—and doable 

Brick-and-mortar retailers may be committed to their physical operation, but having an online presence is still critical to building and maintaining their business.

While some Christian stores put significant time and energy into their Web sites, others go with the basics, recognizing that being online means regular or potential shoppers can find them and get a feel for the store before spending gas money—an increasingly important factor for many cost-conscious consumers—and taking the trip.

Do-It-Yourself might be fine at home, but unless you’re very Internet-savvy, it might be better to consider a template-driven service with minimal up-front cost, such as Innovative’s Signature Websites.

With a professional look, such an inexpensive site can help market your store 24/7 to anyone who comes across it while surfing the Internet or visits the site looking for a particular product. 

Web site service providers can also help stores reach their customers with email promotions, endcap signage and vendor-supported sale products. A significant benefit is that the store doesn’t have to stock all of the inventoried products at its physical location.

Many stores use Facebook—and it’s important to use this social-media platform, too—but a dedicated site for non-Facebook users is still needed. Don’t forget to provide your store’s Web address on your Facebook page, too.

KEEP IT UPDATED

A word to the wise—use spell-check on your Web site and double-check it yourself for errors. 

For instance, a Web site that does not capitalize “Bible” comes off as careless at least, and could even be considered as being disrespectful to God’s Word by some. 

Sites also need to be kept up-to-date. If your store was hosting an author signing three months ago or is highlighting an old VeggieTales DVD, it looks outdated and tired—and doesn’t attract new customers. 

Old blog entries and out-of-date events make for bad advertising. If you plan to use an events calendar to keep users current on Christian concerts, author signings or major church events, don’t let it lag behind. Assign someone on your staff to update it at least weekly. 

If you aren’t getting notice of events, check sites of Christian radio stations, local newspapers or major local churches to regularly freshen up the calendar. Be sure the photos and/or ads on your site don’t look dated either.

If you do build your own site, make sure it’s easy to navigate. Have a couple of people who are unfamiliar with your store test your Web site to see if they can find everything they’re looking for—store location, hours, particular products. 

Make it warm and friendly, too, by putting your personal name to it—your picture would be even better. Add something about the history of your store and/or your commitment to the community.

CREDIBILITY, VISIBILITY

Canadian Christian retail chain Blessings has added a live-chat function to its Web site, and President Mark Hutchinson says it’s a “great tool.” 

“When a customer walks into our brick-and-mortar store, we welcome them and are then there to assist them with finding product if they cannot find what they are looking for; online we were not able to offer this service,” he explained. “I said to my team, ‘We need to replicate this service online. We need to offer “wow” customer service.’ 

“We believe we can now offer the same level of service online as in the physical store. You go to Blessings.com and cannot find what you are looking for, [but] instead of getting frustrated and going to a competitor site, we now offer you the chance to talk directly with [us] so that we can assist you in making your purchase.”

On the supplier front, in similar fashion, Rose Publishing offers a live-chat mechanism for its customers. Users—mainly dealers of Rose’s products—can ask any question through its live support without taking extra time to pick up the phone. It serves the customer well and costs little for Rose to provide.

A Web site gives your store credibility as well as visibility, since many users comparison-shop before heading out the door. Not having one could lead to lost business, not to mention fewer ministry opportunities. CR

‘Keep relevant with what people want’

Lessons on surviving digital upheaval from an innovative leader in the photo world who emphasizes fun 

Guest Editor Gretchen Goldsmith speaks with Mark Comon, vice president of Paul’s Photo in Torrance, Calif., about how his business has dealt with major market changes.

How significant has the change to digital been in the retail camera store industry? 

The typical camera store paid the rent with film and processing every month. Now that is all gone, so as a camera store, you have to rely on hard-goods sales and whatever else you can do. Some people have a fairly good niche still in the processing department, doing prints, which people still want.  Granted, it’s not as much as it was, but there’s still a fair amount of business there. 

How quickly did this digital shift occur? 

Two things have happened. First of all, in the digital world, people don’t print. You guys in publishing may be seeing the same thing, that people aren’t buying books. They’re reading online, they’re downloading, but they’re not going to the store and buying a book. That’s the same kind of thing that happened to us. People are shooting more pictures than ever, but they’re not sharing them in a printed form. They’re sharing them online, they’re sharing them on their iPad, or they’re stuck hopelessly on their computer with our moms and dads’ generation not being able to look at them, view them or print them.

How fast did that turn occur?

Five years. The switch came in the late ’90s.

How many retail camera stores are there today compared to, say, 10 years ago?

It depends on how you define a retail camera store. The small mom-and-pop camera store, the small mom-and-pop, one-hour photo lab, those guys are all gone. I would be willing to guess that there are a third less camera stores in the U.S. than there was 10 years. Two big chains merged. They had thousands of stores and they’re down to just a couple hundred stores.

What methods have you used to bring in new income to replace that business? 

We just have to work hard to keep the customers we have. We still do a fair amount of printing. Granted, it’s not as much as it was before, but we’re trying to transition people into new ways of printing. We’re doing photo books, a lot more enlargements, canvas prints. Then we do education. We do classes and trips and tours to build loyal customers and keep people interested in taking better pictures. I find when people take better pictures, they take more pictures and have more fun with it.

Are there any programs or ideas you’ve implemented that have been particularly successful?

We’re still fishing for the right answer as everyone is in the printing world. No one really knows what makes people decide to print pictures. Well, no, we do know what: It’s an event, whether it’s a wedding, a birthday, an anniversary. As far as the class and education side, I just have to keep relevant with what people want to learn today. As new cameras shift, as new technology shifts, people want to learn new things and they want to learn about what’s new and how it works best for them.

The emails you send out vary. Some are quite plain and some use templates. Can you explain?

I go back and forth. When I send a personal email, I do it as text-only because I hate to get an email from someone when it’s just all these red x’s all over the place and you can’t see it, so when I send an email or a newsletter, it’s all text. So if you want to find the information, if you want colored pictures and stuff like that, you’ve got to click on the links and go someplace else. Constant Contact is fancier. I get answers on my emails from my regular customers who know me. I’ve had absolutely zero response from people who don’t know us personally with email marketing. But I find it really effective for, “We just got this new thing in. Come take a look at it.” or “We’re going to have this special event tomorrow night. Come down and check it out.” 

Are there any particular classes that have been most successful for you, and any idea why that is? 

Our photo boot camp is the most popular because it’s a six-week class to really get you going on your camera. Everyone buys a fancy camera to go on vacation or for a party or for an event, and then quite often you’re not 100% satisfied with the result. Here, you come in, we take you through the camera top to bottom. You have assignments, you go away, you come back. Hopefully you’re learning. When you make better pictures, you’re having more fun. That’s what it’s all about for me. Creating an environment where people can have fun and succeed. 

You teach classes on Photoshop and other digital photography tools. Why would you offer classes that hurt your remaining film-processing business? 

The technology is going to come whether you embrace it or not. If you put your head in the sand, you’re just going to get run over. Would I like to go back to the days of film? As a film-processing, developing guy, yes. But as a photographer and a photography coach, I see huge improvements in what people are doing and cameras and technology—and an interest. Maybe one of the aspects that your readers should be looking at is, “How can we embrace the technology and turn it to our advantage?” Why don’t you guys offer support materials? You can’t look at a map on a Kindle. You can’t look at a picture timeline on a Kindle. “Here, we have the supporting products for this new book in stock. Come down and get it.”

Was this shift in your thinking an instant thing or did you grow into it?

I had to grow into it. The other thing you have to remember—when digital photography started, it sucked. I didn’t embrace it because the pictures were low-quality. After a very short while, it got a little bit better. Then for some people, it was OK; for the serious guys, it wasn’t. Gradually, now there is nobody that doesn’t do better in digital than they did in film.

What have been some of your most successful classes?

Everything I do is successful. Everything I do is fun for the customers, fun for me. It’s just a great experience—that’s the way I build it. A lot of times I decide where I’m going to go (to lead a group) by asking my people where they want to go, and then we go there. 

How do you go about asking them? 

Generally how it works is we’re sitting at the bar on the last night of the trip and [I may ask], “Where do you guys want to go next?” In the next two weeks I’m taking my third safari to Africa, and that trip came about sitting in the bar on our last night in Germany in 2005. This is our third time going. Same thing happened in January—I’ve got a snowmobile trip to Yellowstone in the wintertime.  

People can buy cheap cameras pretty much anywhere these days. How do you keep them coming back to you? 

Number one, we sell at the same price you can buy them online for, so there’s no price advantage for buying online. The big question is, when you have a problem or need help, how much help is the Internet going to give you? They’re not going to help you at all. I understand a camera is a little more taxing technologically than a book is. For me it’s all about personal relationships. I know all my customers by name, they know me. I’m on third-generation customers. 

What advice do you have for Christian retailers?

You should be able to do it better. You can always do it better than the big guy. The bigger the guy, the more opportunity you have to find what you can do better then they do, how you can service your customers better, how you can help your customer, be the value-added resaler. Remember what you’re best at. I know what I’m good at and I don’t do things that I’m not good at. I leave that for somebody else. 

You sound pretty passionate about it.

I am. I love what I do. I get up and go to work every morning and love it. CR

Why e-books aren’t the end of the world

Christian Retailing’s Supplier of the Year on specialty retail’s enduring niche

Since our company was named Supplier of the Year for 2011 by Christian Retailing magazine, I have been asked what we do that prompted stores across the country to speak so positively about our products and service.

Rose Publishing’s market share through Christian bookstores has grown significantly through the years, making us a leader in the Bible atlas, biblical studies, denominational studies and Bible reference categories.

I believe that part of the reason for that lies in our roots and our conviction that Christian retail stores are not just another channel for the distribution of Christian products, but share in a unique partnership with suppliers.

Christian books and bookstores have always been a part in my life. My father came to Christ as a graduate student at the University of Nebraska by reading Paul E. Little and other authors. When I was 8 years old, he and my mother started a book table to serve students at UCLA, later helping open a Christian nonprofit bookstore near campus. I remember many happy hours helping in the store.

At 23 years old, I was the first full-time female trade representative to cover 200 Christian bookstores in the eight Western states for David C. Cook Publishing. Too young to rent a car, for several years I drove from store to store. 

Inventorying three stores a day, making friends with the buyers, and in some cases even staying in their homes, gave me an understanding of what Christian bookstores wanted and needed from publishers.

Those experiences inform several things we do to try to serve stores more effectively.

REASONS FOR SUCCESS

We answer the phone.

There is no “phone tree” at Rose—our 800 number is answered by a human being from 7 a.m. to 4 p.m. PT. Inquiries during normal office hours are answered by a knowledgeable, helpful person, not a call center or part-time summer staff. We return after-hours messages the morning of the following business day. 

Two years ago, we installed a “customer service live chat line” that allows dealers visiting our Web site to get answers fast without picking up the phone. 

We remember the mission.

We never forget that Christian bookstores are the loving faces and hands of Jesus Christ to their communities. Our staff often prays with store staff about difficulties they mention. We also recommend products that will answer a customer’s question. When loyal dealers have their anniversaries, we honor requests for free products for giveaways. We help with special events.  

Some publishers don’t have time for Christian bookstores that order less than $1,000 at a time. They send stores to the distributors who don’t know the products as well. We have a dedicated sales reps and well-trained customer service reps to serve the independent Christian stores.

We aim to meet needs.

Most of our product line has come from suggestions given to us by stores—the Then and Now maps, the time lines, the comparison charts on denominations. Our best-selling Rose Book of Bible Charts, Maps, and Time Lines came about because dealers wanted 8.5-by-11-inch versions of our large wall charts for people who didn’t have room on their walls. 

We know people are sometimes too busy these days to read a 200-page book, so we give them pamphlets that condense a topic  into 14 easy-to-understand pages, complete with diagrams, photos, maps and charts.

We provide free marketing help.

We started giving away free Bible eCharts to help build our mailing list, but have offered this program to stores, too. Many don’t have time to create fancy social media campaigns or look for giveaways that will increase the open rate of their emails, so our free program lets them send a free item each month.

The link for the free chart goes to a site that does not have Rose contact details. The store’s email also explains how to sign up for the store e-newsletter.

REASONS FOR HOPE

Despite all the challenges in our industry, I remain positive about the special role and opportunity for Christian bookstores.  

 The market is still there.

There are millions of Christians in the U.S. who buy a lot of Christian products. They might buy in a variety of new ways, but the customer hasn’t disappeared.

In-store is immediate.

Online retailers cannot service customers with need for the product now, today.

Print is still strong.

Sales of Christian books are still dominated by printed books and will remain that way for a long time. Many people don’t realize that most music is still sold on CDs. People like them for gifts, for permanence, for backup. 

E-book categories differ.

Religion as a category is one of the slowest to switch to e-books. Kindle, for example, has difficulty with Bible formatting. Yes, you can get a free Bible, but you cannot jump to a chapter and verse with ease. 

In addition, common sense tells us that churches will always buy for the broadest use. You can’t tell Fred he isn’t welcome at Sunday school because he doesn’t have a Kindle or an iPad. Christianity is not an isolationist activity the way normal book reading is. Most e-books have no page numbers. How can a Bible study group stay together when there are no page numbers?

Physical is more visible.

Digital products require intentionality. You have to download something to read it. But sitting in a doctor’s office waiting room, you need only open your eyes to see magazines and books. You are captivated by a headline. Tracts and Christian books capitalize on this. 

Amazon's biggest challenge is to get people to buy more than one item, whereas a bookstore customer rarely walks out with just one item.

New technology can help.

Social media and other communication developments are enabling retailers to contact customers in new ways who might be walking or driving near the store and offer them an incentive to come in. Where.com is just one example of how hyper-local ad networks can function.

Some things don’t change.

Customers are different than they were 10 years ago in many ways—interests, demographics, buying patterns—but their questions remain exactly the same. Who is God? Does He care about me? And more.

Christian bookstore owners and managers passionate about serving the Lord insist on good-quality product because they have to stand behind it when customers come asking questions. This is a clear advantage over secular megastores. Christian bookstore staff add value by giving recommendations. CR