Selling Academic Materials Directly to End Users, by William Park, Deep Dyve

Charleston Conference

“Selling Academic Materials Directly to End-Users”

Bill Park, CEO

November 2013

Introduction to DeepDyve

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About UsTechnology company

based in Silicon Valley

Our CustomerMillions of “unaffiliated”

professionals in small/mid-sized businesses

Our ServiceRent and read-only

millions of articles from thousands of authoritative journals• Expires 30 days+

• $20 for 5 rental tokens

• $40 per month for 40 rental tokens

DeepDyve Background

Content– 150+ publishers

– 3,000+ journals

– 10M+ articles

Users– 95% .com domains

– 75% outside U.S.

– SME group plans

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How It Works…

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Personalized Tools – “My Homepage”

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Account activity

Account activity

Favorite journals

Favorite journals

Suggested titles

Suggested titles

Folders and listsFolders and lists

Consumerization of Technology

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“Consumerization is the growing tendency for new information technology to emerge first in the consumer market and then spread into business and government organizations.

The emergence of consumer markets as the primary driver of information technology innovation is seen as a major IT industry shift, as large business and government organizations dominated the early decades of computer usage and development.”

“Consumerization is the growing tendency for new information technology to emerge first in the consumer market and then spread into business and government organizations.

The emergence of consumer markets as the primary driver of information technology innovation is seen as a major IT industry shift, as large business and government organizations dominated the early decades of computer usage and development.”

“Consumerization” – Nothing New

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What’s changed?• Microprocessor• Web

• Reach – access more users than ever before• Standards – enables highly efficient development • Cost – lower storage, broadband costs enables new

applications and business models

“Consumerization” of Technology

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Principles of Consumerized Technology• Interfaces designed for the end user•Quick and easy (and free) to try•Highly scalable, i.e. simple and standard

Enterprise vs. Consumer – Differences

Enterprise “Consumer”

Buyer Intermediary End User

Key Criteria ROI Usability

Evaluation approach Measurable “Irrational”

Decision timeline Long Short

Sales, support Vendor Website

New releases Slow Fast

UI Feature-rich Simple

Key features Admin, reporting Tools, personalization

Implementation Custom Standard

Agreement Years Month-to-month

Switching cost High Low

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Better user experience (less is more)Faster to get started (no dependencies)Cheaper to start (and cheaper to stop)

Better user experience (less is more)Faster to get started (no dependencies)Cheaper to start (and cheaper to stop)

End User - Grass is different, not Greener

Simple is complex

Customers are not a phone call away

“AARRR” - It’s hard to be a pirate– Acquisition: where do users come from?

– Activation: what % have “happy” initial experience?

– Retention: do they come back and re-visit?

– Referral: do they like it enough to tell their friends?

– Revenue: can you monetize this behavior?

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“AARRR” @ DeepDyve

Acquisition– Track visitors by source

– Follow visitors thru ‘funnel’ to capture LTV by source

Activation– Track conversion: registration; feature action…

– Test constantly to improve activation

Retention– Email newsletter to announce new features, content

– Search, TOC and other personalized alerts

Referral– Viral links to Twitter, FB, email…

– Considering promotions

Revenue– Pricing and trials

– Features for each service

– UI: wording, look/feel, user-flow…Confidential 11

Unaffiliated End-User Opportunity

# knowledge workers worldwide1: 250M– # STM institutional readers: 10-15M (5%)

Unaffiliated Market Potential– Capture additional 5% of KW’s: 12.5M

– Upsell them: $50-100 / yr

– Market Opportunity: $600M – $1.2B

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1 Mabe MA (2009): Scholarly Publishing. European Review 17(1): 3-22)

Can libraries make services such as DeepDyve available to their (walk-in) patrons?•Value-add service•Honors copyrights•Referral fees

Can libraries make services such as DeepDyve available to their (walk-in) patrons?•Value-add service•Honors copyrights•Referral fees

IT Departments – Parallels for Librarians?

Control– IT departments had to finally “let go” and support a myriad of

apps and devices

Role– IT departments morphed from ‘support’ to ‘service’

Data– IT departments increasingly strategic for managing the growing

areas of data usage and data security

Licensing– Budgeting decentralized; IT department looks at usage, then

licenses ‘retroactively’

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Questions?

Thank You!

William (“Bill”) Park

[email protected]

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