TIME OF CHAOS,TIME OF CONTROLPresentation at Publishing Technology’s Executive Exchange

Brian Holding, Human Kinetics

Dec. 12, 2012

Chaotic times• E-book formats

• Product forms

• Devices

• Sales channels

• Digital rights

• Discounting

Control comes with …

1. Publishing mission focus with committed staff

2. Quality content from authoritative sources

3. Strong, new internal systems (XML-based workflow)

4. Culture of innovation and respect

5. Building direct customer relationships – which can lead to product development opportunities

Sales Channels Outside Publisher 1990s 2000s 2010s

Book Clubs

Independent Bookstores

Mall Bookstores

Direct Marketers

B&N/Borders Bookstores

Warehouse Club Retailers, Walmart

College Bookstores

Consumer Book Wholesalers

Academic Book Wholesalers

Amazon

B&N Online (Consumer and College)

Apple

Google

Online University E-book Licensing

Library E-Book Retailers

…direct access to your customer

• No more gatekeepers (buyers)

• No more shelf limits

• No more geographic boundaries

• No more product limitations

Building a customer relationship

• Relevant communications/products. Establishing your products as meaningful. Authors, associations products, forms.

• Value-added communications. Magalogs not just catalogs. Apps with news. News feeds on websites.

• Invite, don’t interrupt. Opt-in e-marketing lists. Rewards Program.

• Multitude of marketing means including social media

Ability to sell direct even if your customers prefer Amazon

• Your showroom where you can bring customers

• Present all your products with proper emphasis

• Display all your formats for products

• Facilitate delivery for online courses, ancillaries for students and faculty

Human Kinetics’ websiteYTD

Visits Unique Visitors Pages / Visit Time on Site % New Visits Bounce Rate

Desktop 1,421,012 1,083,686 4.95 2:05 72.82% 9.69%

Mobile 181,274 140,139 3.6 1:36 74.35% 9.97%

TOTAL 1,602,286 1,223,825 4.79 2:02 73.00% 9.73%

Mobile is driving 11.3% of total site

traffic!Translates to about

160k/month and 5,200/day

72% of HK

survey respondents use their mobile device to access

the Web daily

Sources: Google Analytics (HK data), Microsoft (mobile data), HK employee survey

From where in the world are they coming

1. U.S. – 1.4 million

2. Canada – 263,000

3. U.K – 254,000

4. Australia – 147,000

5. India – 70,000

6. Philippines – 58,000

7. Malaysia – 25,000

8. Singapore, 24,200

9. N. Zealand – 23,500

10. Ireland – 22,250

Others:• Germany, 16,000• Spain, 15,430• Italy, 15,266• Brazil, 11,000• Turkey, 10,383• China, 10,000

How are people finding us?

• Who exactly are these visitors?

62.7%

21.8%

13.7%

1.5% 0.1% 0.1%

Visits by Medium - YTD

organic search

direct

referral

cpc

twitter

other

10%

39%

14%

21%

7%9%

Visitors by Type

Consumer

Professional

Student

Instructor

Other

No Answer

Sources: Google Analytics, HK Customer Survey

How many and what are they buying?

Nearly 1 million individual customer records in our systems

• 42,454 U.S. individual purchases in past 7 months compared with 57,000 for all of FY12.

• Over 150,000 customer records with our subsidiaries in Europe, Canada, and Australia/New Zealand

Online courses, books, and e-books

• $1.5 million in product sales past 7 months

• $719,000 in online course sales

• Best-selling products are coaching education courses

Even if they don’t buy from HK, they do …

• Buy elsewhere building HK’s value with that channel

• Increase HK product rankings on sites like Amazon

• Improve affinity marketing presence on Amazon

• Attract new product opportunities through strong ties authors or organizations

Failing to develop customer ties…

• Limits sales through other channels

• Lowers product and brand awareness

• Hurts ability to attract strong authors and partnerships with organizations

• Reduces competitiveness in today’s chaotic marketplace

Any questions?