Running your high school library like a business

1
Running your high school library like a business

• How to transform your Library using Business
  acumen!
• by Neil Krasnoff

2
Evolution of this Presentation

• Original plan talk about the success of Lehman
  High School and its success using 21st Century
  strategies. I Also hoped to present a
  comprehensive look at all library operations from
  a business perspective.
• Facebook efforts did not increase involvement and
  circulation.
• Did a lot of reading and interviewing regarding
  marketing and business practice and theory and
  got very overwhelmed. 
• Decided to work with 3 C's and 6 P's and have
  group share ideas.

3
Goals of this Presentation

• 1. Provoke some rethinking of current library
  practices and challenge ourselves for
  re-engineering practices where needed.
• 2. Participants will think about library in more
  structured and disciplined way
• 3. Create advocates for positive library vendor
  relations and better vendor service.
• 4. Provide some concrete strategies that everyone
  can implement now.
• 5. Participants will apply the 6P Marketing model
  and continue collaboration after TLA conference

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Topics Covered

• 1. What can Business teach Libraries?
• 2. One Business Framework-The 3 'C's
• Customers
• Competition
• Change
• 3.  Library as a retail store
• 4. Technology  Opening new channels for
  distribution and marketing
• 5. Marketing The 6P Model and collaborative
  project

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What can the best business teach libraries?

• The importance of focusing on the customers 
• How to deal with competition
• How to deal with constant change
• How to use Technology
• The importance of innovation
• How to think about work, your colleagues and grow
  in your career

6
What are Knowledge Workers?According to Peter
Drucker

• Self-aware, especially regarding their strengths
• Dedicated to self-improvement and staying ahead
  of the curve regarding their primary skills
• Work in flexible and innovative organizations
  where  employees focus on applying their
  strongest skills
• Professional identity extends beyond current job
•  Always planning for the next half of career
• HS Librarians can't always function as Knowledge
  Workers because of the wide range of job duties
  and we don't work within flexible and innovative
  organizations
•  

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Case Study Netflix vs. Blockbuster
 
 
 
 
 
Chart from http//finance.yahoo.com
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What does the case of Netflix vs. Blockbuster say
Directly to Libraries?

• Delivery of product-convenience
• Selection- The more the better
• Late fees and pricing
• Customization of recommendations
• Netflix understands social needs of customers
• In-store experience at Blockbuster lacking
• Netflix is more innovative
• Netflix has better work environment
• Blockbuster was in denial a long time and paid
  the price

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Customers The First 'C'

• "A Customer orientation in marketing acknowledges
  that we can't change customers to fit what we
  have to offer."
• -From "Strategic Marketing for Non-Profit
  Organizations"
•  
• Libraries must meet the students and teachers
  where they are "See them as our Target Market and
  define their needs!" 
•  
• A Customer orientation means we need to cater to
  picky readers and teachers that don't have time
  for library use.  

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General Things about our Customers

• Students
• The Web, videogames, cell phones, etc.
• Not that into privacy!
• Not very patient
• Limited time to read
• Many don't see reading as essential or important
• Expect information to be free and easy to locate
•  
• Teachers
• Many of the same qualities as students
• Limited time for planning and reflection

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Poll on Library Web site  What is your favorite
tool for communicating with friends and
family? Text message via phone 48 52.7Phone
(voice) 20 22Facebook, Myspace
13 14.3Email 7 7.7AIM/Internet instant
message 2 2.2Paper (cards and letters)1 1.1   
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Customer Relationship Management (CRM)?

• CRM is based on the premise that 1 to 1
  relationships with a vast majority of customers
  is impossible
• Brandingis the most coarse means of CRM
• "Brand strength  and brand value are a sum total
  of experiences that have with the company and all
  its products and services."-CRM Handbook Ch 1
• Profiling customers based on past purchases is a
  key element of most CRM initiatives
• Other aspects of CRM include sophisticated ways
  of gaining customer insights in order to
  transform marketing efforts
•   

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CRM-Segmentation is everything!

• Another key objective of CRM is to identify
  market segments for the purpose of tactical
  promotions
• Segment managers are responsible for promoting
  the product to specific segments (a degree of
  specialization that is not possible with small
  library staffs)?
• Microtrends involve 1 of population, which
  represents a market worth pursuing. In high
  school, these are the rebels.

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CRM-Marketing vs. Distribution

• Coke vs. Pepsi-Coca Cola has a larger market
  share because of its distribution channels while
  Pepsi spends more on advertising/marketing.
• Therefore libraries must consider distribution
  channels as much or more than on marketing
• Teachers and classrooms can be thought of as
  distribution channels. 
• How can we get more distributors for our products?

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Final words on CRM and Marketing   

• 70 of Marketing managers say capturing customer
  attention is a "serious problem."
• Wireless and mobil communications have increased
  customer expectations for convenience
• A customer orientation in marketing acknowledges
  that we can't change customers to fit what we
  have to offer (Kotler and Andreason)?
• The trend towards increasing segmentation and
  customization is here to stay
• We must do more to understand our customers

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Things we can do to understand and serve our
customers

• Polls 
• Interactive Web sites (Online student reviews)?
• Recommendation board-Instant hit in our library
• Use favored means of communicating (see poll in
  previous slide)?
• Old fashioned in-person relationships 
• Focus groups
• Student advisory boards
• Marketing according to well-defined segments
• Profiling users vs. Customizing for users

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Tips on winning over teacher customers

• Use teacher-centric pitches
• I can save you time
• I'll do detail work you don't have time for.
•  I'll help with class management issues
• When given the opportunity, produce you best
  work, utilizing your strengths
• Good communication
• Help teachers collaborate with each other

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Specific methods of understanding customers

• 1. Ask 2-3 simple questions to a specific group
  of students. (Quick focus group)
• "What additional Product or Service would you
  like to see the Library offer?"
•     "What gets in the way of your reading more?"
• 2. More detailed class surveys (online is
  better)?
• 3. Statistics and careful observation
• Interview students while using Web site
  (Usability study)?
• 4. Library Event Idea Contest

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Best Ideas from the audience for serving customers

• Nintendo Wii events in library
• New books release party
• Field trip with students to bookstore to purchase
  books they want
• Book display to correlate with guest speaker

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Competition The 2nd 'C'

• Direct competition with school libraries
• Book Stores (online and brick/mortar)?
• Search Engines
• Public Libraries
• Indirect Competitors
• Video Games
• Television
• Internet in General
• Shopping in general
• Wireless devices-cell phones, Ipods, etc.

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First the good news!

• School Library Advantages vs. Competition
• 1.  Location, Location, Location!
• 2.  Many of students' favorite activities banned
  at school!
• 3.  We're free!  Many companies are now
  demonstrating the value of "free."

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Now the bad news!

• Our competitors have the following advantages
• 1.  Huge marketing campaigns led by the
  brightest minds in the world
• 2.  Sophisticated brands that capitalize on
  trends in popular culture
• 3.  Young generation seems to prefer mindless
  entertainment over a life of the mind
• 4.  Longer hours of operation and more available
  products online
• 5. Larger organizations with more specialists

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Technology in Business vs. Schools

• In a US Dept of Labor Study (2002), measuring IT
  usage and implementation, Education was ranked
  55th out of 55 sectors of the economy.  Coal
  miners are using technology at a higher level
  than US public school students.
• In business workers are rewarded for high
  productivity using technology and students in
  public schools are punished or fined. 
•  
• Schools copy each other while businesses try to
  find competitive advantage.

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Technology in Business vs. Schools (cont.)?

• Schools delay change for many reasons while
  business takes risks and pushes ahead.
• Amazon has allowed customers to publish reviews
  on its Web site since 1997 and Lehman HS did not
  start until 2008.

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What schools and librarians can do    

• Raise the bar! Be the change!
• Liberalize our policies over tech use in the
  library.  Encourage admin to do the same for
  school.
• Learn every Friday or when you're not busy and
  think about doing something nobody else is doing.
• Teach what you learn to others.
• Network and learn from private sector "geeks." 
• Outsource technology if technology department
  isn't helpful .
• Demand more or our software vendors, especially
  library automation.

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Features we should consider for our Library
Automation software

• Text message or email subscriptions for new
  arrivals in specific series, authors, genres,
  etc.
• Assistance with collection development that take
  into account student ratings and circulation
• Social networks and ratings that extend beyond
  the individual schools to connect like-minded
  readers
• Monitor for "buzz" to give us information
  regarding emerging trends and hot topics
• More personalization and customization options

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Some Ideas for making Library Web resources more
accessible

•  Easy to remember Web address, which is an aspect
  of your brand
• Create a Google Gadget and encourage students to
  put on their personal homepage
• Instead of links to databases, put a search box
  on the library page
• Minimize barriers such as password protection
• IP authentication for on campus use
• Referer URL authentication
• Cookie authentication for returning users
• Federated search products
•  

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What else can we do about competition?

• 1. Leverage our advantage of location and host
  events.
• 2. Consider more liberal policies on gaming, cell
  phones, etc.
• 3. Branding for library Web site-Get a domain
  name!  
• www.lobolib.org sure beats www.hayscisd.net/school
  s/lehmanhs/library
• 4.  Meet students where they are Facebook, etc
• 5.  More on 24/7 on-demand service in streaming
  video,  downloadable E and Audio books, more
  online chat help 
• 6.  Provide service with a smile
• 7.  Benchmarking-Learn from the competition!

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Benchmarks Striving to be like our competitors
or Best-of-Breed leaders

• 1.  I want my library to recommend books and
  remind customers the way Amazon.com does.
• 2.  I want my online library to be as easy to
  check out from as it is to buy car insurance from
  Progressive.com
• 3.  (Audience Member) Receive the new books as
  soon as they are released just like bookstores
• 4. (Audience member) Have as many library users
  as football fans.
• 5. Have an online library that is works with
  portable devices as well as Apple Itunes

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Change The Last 'C'Change is a Constant 

• Business is raising expectations for us whether
  we like it or not!
• "As the service bar has been raised by the
  private sector, citizens are demanding better
  treatment and interaction with government"  
   -Sean Shine in the Ultimate CRM Handbook
•  
• My belief is that schools should be given a grace
  period of 2 years to adopt a successful
  technology practice that the private sector is
  using.
•  
• Librarians should embrace the ethos of "Knowledge
  Workers."   Learn all the time!

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The school library as a retail store

• What some school libraries are doing to compete
  with book stores
•  Relaxed and welcoming environment  
• Comfortable furniture and surroundings
• Selling coffee and other food/drink items
• Free internet, but that darn filter!
• Book store style shelving and displays. 
•   

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Some more radical ideas from retail

• Space is at a premium! We have a high traffic
  location!
• 1.  If no one is using the reference area, make
  it into a coffee shop!
• 2.  Our shelf space is worth something!  Think
  like a grocery store.
• -Don't buy it and put it out if it has no
  audience!-Collection development should favor
  popularity-Maybe publishers should give us
  incentives to place their books in prominent
  positions!
• -Place near checkout for "impulse" purchases

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A few words about social media marketing

• Begin by asking tough questions
•  Know your audience
• Tell your story effectively
• Prepare for negativity
•  Measure success
• Know who's is doing what job
• Have a roadmap, but be prepared to change tactics
  or strategy
• Engage in conversation
• Monitor your brand  
• Optimize off-line and online strategy
• http//onehalfamazing.com/social-media/5-must-have
  s-for-developing-corporate-social-strategy-social-
  camp-memphis-edition/

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Ideas for libraries on Facebook

• Create fan page for library and send messages to
  fans.
• Post videos to fan page
• (Need more ideas here!)

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Marketing the 6 P Model

• Product (or Product Mix)?
• Price(We can't get a pass on this!)?
• Packaging (How do you present product to world)?
• Promotion (Advertising materials)?
• Place (Distribution channel)?
• People (How do you touch them and define target
  market) 

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Product

• Must pick a product that has value to customers
• In libraries, product could be an author, a
  genre, a series, an electronic product or a
  service

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Price

• A popular book may be free in library but worth
  paying for if the wait is too long
• Reading a library book may be free, but there
  could be opportunity costs
• Price may be literal if a fund raising event

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Packaging

• Any thing done to make product more attractive
• Book covers are certainly part of packaging
• Attention grabbing aspect of book display

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Promotion

• Materials used to advertise product
• Booktalks
• Media Podcasts, video commercials, etc
• Incentives
• Giveaways

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Place

• Where product is promoted
• Physical space such as library, classroom or
  hallway
• School announcements
• Facebook, Myspace, or YouTube
• Library Web page
• Blog
• Sporting event

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People Who are the target customers?How will
campaign touch them?

• Market  books or library programs to a high
  school market segment
• Athletes, theater types, honor students, band and
  music kids, comic books guys (and some girls),
  Internal dropouts (present in body, but not in
  mind), skaters, administrators, teachers and
  other staff
• What aspects of the product/service, price,
  packaging, and promotion will appeal to them?
•  

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High School Marketing Collaborative

• Will provide a central location for quality 6P
  Marketing Programs that can be used in any high
  school
• Marketing includes books, databases, or any
  library product or service
• An opportunity for librarians to focus on their
  greatest strengths and share them with others
• Wisdom of Crowd in Wiki will refine ideas.
• It all starts now!

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Bibliography    

• Andreasen, Alan, and Philip Kotler. Strategic
  Marketing for Non-Profit Organizations (7th
  Edition). Alexandria, VA Prentice Hall, 2007.
•  
• Champy, James, and Michael Hammer. Reengineering
  the Corporation A Manifesto for Business
  Revolution. New York Harperbusiness, 2001.
•  
• Drucker, Peter F.. Management Challenges for the
  21st Century. London Collins, 2001.
•  
•  
•  

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Bibliography-Continued

• Freeland, John. The Ultimate CRM Handbook
  Strategies and Concepts for Building Enduring
  Customer Loyalty and Profitability. New York
  McGraw-Hill, 2002.
•  
• Peters, Thomas J., and Robert H. Waterman. In
  Search of Excellence Lessons from America's
  Best-Run Companies (Collins Business Essentials).
  London Collins, 2006. 
•  

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Acknowledgments    

• Thank you to Professor Irene Owens, formerly of
  the University of Texas, for sharing her
  enthusiasm for the ideas of Peter Drucker and for
  management theory in general.
• Thank you to Debra Suing and Irene Krasnoff for
  sharing their knowledge and experiences in the
  business world and serving as sounding boards for
  my ideas.