Sunday, March 1, 2015

Barnes & Noble: The company that reads you.

Barnes & Noble operates a large online bookstore in conjunction with 1350 brick & mortar bookstores, with roughly 10 million customers, selling 300 million books per year (Bruley, 2013). It’s been proven imperative that Barnes & Noble use web analytics in order to gather valuable information in order to continue to gain market share against competitors, especially to dominate the highly competitive eBook market.

Approach, Tools and Techniques

Barnes & Noble aims to thoroughly analyze and control it’s activities in order to develop a personalized approach to customers through more sophisticated segmentation, tailored marketing programs and better coordination of customer experiences (Bruley, 2013).

Barnes & Noble uses third party service providers, such as IBM Coremetrics and Google Analytics, to help the company better understand visitor traffic and customers, especially when determining how customers use their Nook (“Privacy Policy,” 2015). Third party service providers place cookies on customer’s computers to collect information such as how they were referred to the Barnes & Noble website, how they navigate the site and what is purchased and what traffic is driven by various marketing methods (“Privacy Policy,” 2015). This information helps the company better serve the customer, especially by providing them with more personalized information and product offerings.

By collecting IP addresses, browser types, operating systems, referring pages and other similar types of information through the use of cookies, web server logs and pixel tags, Barnes & Noble provides users with advertisements that are customized to particular preferences (“Privacy Policy,” 2015). Data is also collected through applications or devices including information regarding reading, viewing and activity behavior. Activity behavior may include which books or videos were opened, date and time of use, time elapsed, page turns, bookmarks, annotations and customer reviews (“Privacy Policy,” 2015). While in the past, publishers and authors had no way of knowing what happens when a reader sits down with an eBook. Now, retailers are beginning to sift through the data, gaining unprecedented insight into how people engage with books including how far readers are getting in eBooks, how long they spend reading them and what search terms they use to find those books.

In addition, when a customer signs into a Barnes & Noble website or application using a social network account, such as Facebook, Twitter or Google account, the social networking site may provide Barnes & Noble with information about the user including contacts and other “likes” (“Privacy Policy,” 2015).

If the customer is a student and rents or purchases an e-textbook or textbook from Barnes & Noble College Booksellers, the company may also collect information from the college or university such as mailing and email addresses and class registration information (“Privacy Policy,” 2015).


Data Usage

According to Barnes & Noble’s privacy policy the company uses personal information in order to provide a “superior customer experience and, as necessary, to administer” its business (“Privacy Policy,” 2015). This includes providing product and subject recommendations, measuring and maintaining products and services, administering sweepstakes and promotions, communicating with customers about special offers, events or new products, in addition to customizing and enhancing the website and various advertising initiatives (“Privacy Policy,” 2015).

Jim Hilt, Barnes & Noble’s vice president of e-books, says the company is starting to share insights with publishers to help them create books that better hold people’s attention (Alter, 2012). These insights are invaluable considering the company seeks to gain a greater share of the eBook market. For example, Nook users who buy the first book in a popular series like “Divergent,” tend to tear through all the books in the series, almost as if they were reading a single novel (Alter, 2012).

Barnes & Noble has determined, through analyzing Nook data, that nonfiction books tend to be read in fits and starts while novels are generally straight through, and that nonfiction books, particularly long ones, tend to get dropped earlier (Alter, 2012). When data showed that Nook readers routinely quit long works of nonfiction, the company began looking for ways to engage readers in nonfiction and long form journalism, therefore, launching “Nook Snaps,” short works on topics ranging from weight loss and religion to the Occupy Wall Street movement (Alter, 2012). Pinpointing when readers get bored has also helped publishers create better digital editions by strategically adding video or other multimedia features.

While many have been frustrated with the industry’s failure to examine its customer base, web analytics provide the potential to not only the determine the exact demographics of specific genres and books, but also analyze the customer’s behavior while searching for the book in addition to while reading it. 

Perspective

While it seems that Barnes & Noble has set a solid foundation to gain insight on its visitor traffic and customer base through web analytics, there are several recommendations to improve its overall web analytic efforts. 

Considering the store offers thousands of products, it’s vital that the website populates genres that the web visitor is immediately attracted to. With an easily accessible search bar, a visually attractive slider and an effective content on the homepage, Barnes & Noble currently offers an engaging customer experience.  



While the website provides ample information to help the consumer make a purchasing decision, including video on the website would allow the company to gain further insight into its customers. Videos might include introductions from specific featured authors or a Barnes & Noble spokesperson promoting the month’s top picks in a specific genre category. By gathering data from these viewers, Barnes & Nobles could gain insight into who the customer is and if video might be an attractive addition to an eBook for a specific genre.  For instance, the company could us Vzaar in order to host the videos on the website and then group the videos by genre. Therefore, if a person visited the nonfiction section of the site, he or she could easily view other videos from the authors of a variety of nonfiction books.

By strategically placing social sharing links closer to the book covers on product pages, Barnes & Noble will be able to analyze who is sharing the information and what might make them share it. Currently, the social sharing buttons are slightly hard to find and may appear out of the viewing window. For instance, readers of a specific genre might be more likely to socially share about a book. After determining that genre, Barnes & Noble could then host a social media sweepstakes targeted toward that segmented group of readers.

Having an author guest blogger series might also drive traffic to the site, therefore, providing an opportunity to gain additional web analytics. For instance, if Danielle Steel wanted to promote a newly released book, she would be asked to guest blog on the site. The brand would work with Danielle Steel to promote the blog through her network, most likely driving the author’s loyal fans to the Barnes & Noble site to read the blog. Barnes & Nobles would then be able to analyze that specific data in order to, not only gather contact information of those fans, but also find who those fans specifically are and what might make them turn into Barnes & Noble customers.

References

Alter, A. (2012, July 19). Your E-Book Is Reading You. Retrieved March 2, 2015, from http://www.wsj.com/articles/SB10001424052702304870304577490950051438304

Bruley, M. (2013, September 9). Some insights on the Big Data Barnes & Noble experience. Retrieved March 2, 2015, from http://www.analyticbridge.com/profiles/blogs/some-insights-on-the-big-data-barnes-noble-experience


Privacy Policy. (2015, January). Retrieved March 2, 2015, from http://www.barnesandnoble.com/help/cds2.asp?pid=25560

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