This week, Amazon released a free iPhone app for reading eBooks made for its Kindle reader. It has so far received mostly favorablereviews for its execution and for the idea itself.
It would be easy to say that offering eBooks to be read on the iPhone would cannibalize Kindle sales. You could also object that the iPhone’s screen is far too small for reading an entire book. Yet in my view, this is a brilliant move by Amazon.
Amazon’s core mission is to sell content. While the Kindle is a real physical product for which they make a very real profit, the ongoing revenue model for Amazon is to sell eBooks. Kindle’s primary role is as a vehicle for those sales. The iPhone app allows Amazon to open another channel for eBook sales which costs them virtually nothing and removes a $300 barrier to entry for new customers.
Releasing any high-profile application for the iPhone is a publicity triumph. Kindle has received its fair share of media coverage, but no device in recent memory can match the iPhone when it comes to media affection. Any significant move made by a large company which credibly includes the iPhone as a major character in the drama is sure to generate plenty of press.
One of the iPhone app’s most telling features is the ability to synchronize bookmarks across devices. This presents a clear statement that the iPhone app can live harmoniously with the user’s Kindle, meaning enjoyment of your eBook is not an either-or proposition.
That’s where it becomes clear what a victory this is for Amazon. For any iPhone user who has already bought a Kindle, this rewards their purchase with a free option to continue enjoying their eBook in situations where they don’t have their Kindle handy. Even more importantly, it makes an excellent pitch to iPhone users who haven’t bought a Kindle.
There couldn’t be a better target market for the Kindle than a class of consumers who have demonstrated their willingness to buy an electronic device for three figures. By letting iPhone users try Amazon’s eBooks for only the cost of the book itself, Amazon lets the user sell himself on the idea of reading electronic books. As he becomes addicted to the convenience of reading nearly any title anywhere and concurrently grows frustrated with the iPhone’s tiny screen, the Kindle looks more and more attractive.
Any iPhone user who downloads the app and doesn’t buy a Kindle probably wouldn’t have bought one anyway. This gives those users the opportunity to become eBook buyers that otherwise wouldn’t have existed. For those iPhone users who have considered the Kindle, but for one reason or another have not bought one, this app gives a significant nudge.
I applaud Amazon’s iPhone release, and wish them great success. Well done.
Here’s a 5 minute tutorial on saving advanced search criteria in Google into a javascript bookmark. So you can select any text on any web page and run a search on that text using your advanced criteria.
I use it to track what my competitors are saying about any topic I run into.
OK, it’s cheating, but if you were to stumble upon this page at Yahoo Finance, you might mistake me for a real reporter or financial analyst.
I work for Zacks Investment Research in the internet marketing department. Fortunately, nobody relies on my stock analysis. We have highly trained professionals for that. I just sell our products online. And run a stock picking community site where anyone can write analysis.
But when Apple pulled out of Macworld, our chief editor actually did ask me to write up a short piece on it. You can see it here on this blog, but it also was linked off the front page of Zacks for a day in the “Special Coverage” section.
Zacks also syndicates content out to Yahoo Finance. It’s a great source of new members to us, because somebody who reads content that we produce and finds it useful is much more likely to click one of the three or four links that lead to one of our products or to our free newsletter registration.
The side benefit for me in this case is that it almost looks like I’m a writer for Yahoo Finance. That’s my byline just a few pixels below their logo.
I don’t know if I’d say there are any secrets contained in the article, but it is a well written common sense look at building relationships with your customers using Web 2.0.
Here are the main points they make:
1) Don’t just talk at consumers– work with them.
Web 2.0 is about transcending the one-way flow of information. A company blog may put a human face on the brand, but it doesn’t engage the consumer in the same way that a real community can. Encouraging your customers to talk to each other about your products is a fast, cheap and honest source of feedback that goes beyond what a survey or focus group can provide.
2) Give consumers a reason to participate
Some companies provide actual rewards in cash or products, but often the community itself is sufficient incentive. The key is to make it useful, well-moderated and see that the best contributors are recognized for their efforts.
3) Join the conversation outside your site
Consumers will talk about your brand and your products on other sites. Many successful companies monitor Digg, Del.icio.us and individual blogs for mentions of their products, and seek to engage users in conversations about their experiences and opinions.
4) Resist the temptation to sell sell sell
Members of online communities participate with the expectation that their ideas and opinions will be heard, not to become recipients of a one-way sales pitch. Through their participation, they’ll affirm your brand’s value better than you could anyway.
5) Don’t try to control it
Communities won’t always speak of you the way you want them to, but if you listen, you’ll find valuable feedback. Try to shut down negative opinions or dissent and you’ll shut down the entire community.
The article seems short on recommendations for how to proceed with this information. They encourage organizations to find employees who have a strong background in social networking in addition to traditional marketing expertise. They also encourage experimentation since no one solution works for every company.
If you’re trying to steer your company into building relationships with your customers using social media, this article may provide a useful lever for discussions with management decision-makers. There may be more insightful articles on the topic, but the fact that this one appears in the WSJ gives its citation instant credibility in the board room. Their recommendations are mostly right on track, and the case examples may help your upper managers to visualize how it may work for your customers.
Read the whole article (free for a limited time) at WSJ.com
It would be easy to say that offering eBooks to be read on the iPhone would cannibalize Kindle sales. You could also object that the iPhone’s screen is far too small for reading an entire book. Yet in my view, this is a brilliant move by Amazon.
