Running your high school library like a business

How to transform your Library using Business acumen!

by Neil Krasnoff

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.

Goals of this Presentation1. 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

Topics Covered1. 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

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

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

•  

Case Study: Netflix vs. Blockbuster

     

Chart from http://finance.yahoo.com

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

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.  

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

General Things about our Customers

Poll on Library Web site

 What is your favorite tool for communicating with friends and family?

Text message via phone 48 52.7%Phone (voice) 20 22%Facebook, Myspace 13 14.3%Email 7 7.7%AIM/Internet instant message 2 2.2%Paper (cards and letters)1 1.1%  

Customer Relationship Management (CRM)• CRM is based on the premise that 1 to 1 relationships

with a vast majority of customers is impossible• Branding is 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

  

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.

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?

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

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

Tips on winning over teacher customers

• Use teacher-centric pitcheso I can save you timeo I'll do detail work you don't have time for.o  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

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

Best Ideas from the audience

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.

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."

Now the bad news!

Our competitors have the following advantages:

1.  Huge $$ marketing campaigns led by the brightest minds in the world2.  Sophisticated brands that capitalize on trends in popular culture3.  Young generation seems to prefer mindless entertainment over a life of the mind4.  Longer hours of operation and more available products online5. Larger organizations with more specialists

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.

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.

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.

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

Some Ideas for making Library Web resources more accessible Easy to remember Web address, which is an aspect of

your brandCreate a Google Gadget and encourage students to put

on their personal homepageInstead of links to databases, put a search box on the

library pageMinimize barriers such as password protection

IP authentication for on campus use Referer URL authentication Cookie authentication for returning users

Federated search products•  

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/schools/lehmanhs/library4.  Meet students where they are: Facebook, etc5.  More on 24/7 on-demand service in streaming video,  downloadable E and Audio books, more online chat help 6.  Provide service with a smile7.  Benchmarking-Learn from the competition!

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.com3.  

4.

5. 

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!

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.   

Some more radical ideas from retailSpace 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

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-haves-for-developing-corporate-social-strategy-social-camp-memphis-edition/

Ideas for libraries on Facebook

  • Create fan page for library and send messages to fans.• Post videos to fan page

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) 

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

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

Packaging

• Any thing done to make product more attractive

• Book covers are certainly part of packaging• Attention grabbing aspect of book display

Promotion

• Materials used to advertise product

• Booktalks

• Media: Podcasts, video commercials, etc

• Incentives

• Giveaways

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

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?

•  

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!

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.  

 

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.  

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.