Bookspan Study Finds Clubs Sell Books

To counter the perception among some industry members that book clubs are a slumbering distribution vehicle that merely steals sales from the retail market, Bookspan commissioned an independent study to determine the impact of clubs in the current book world. The findings, said Seth Radwell, president of Bookspan's editorial and marketing group, and Mel Parker, senior v-p and editorial director, confirmed the conclusions Bookspan reached from its own internal research, namely that the clubs serve as powerful promotional vehicles that stimulate sales through a wide variety of channels.

The study, conducted by RoperASW, examined the book purchasing habits of 942 Bookspan club members and 1,005 heavy book buyers. One of the key findings was that about 55% of club members and 42% of book buyers bought a book that was featured in a Bookspan catalogue at either a store or online. Parker noted that particular finding dovetailed with what Bookspan hears in its focus groups. "Our members say they are happy to be members, but that they reserve the right to get our catalogues and go elsewhere to buy their books." Radwell noted that only about 12% of its members order a main selection, while many others buy the book at other outlets.

Parker and Radwell were both pleased that the club's direct-mail pieces are considered important information sources for books by both members and book buyers. Eighty-eight percent of club members said they learn about new books from the club's mailings; word of mouth, at 78%, was the second most popular method. Of the book buyers surveyed, 46% said they learn about books through club mailings. Bookspan mails approximately 160 million direct marketing pieces to prospective members annually. While that 46% rate puts club mailings in the middle of the pack in terms of sources of information, it is higher than the 33% of book buyers who said they hear about books on TV shows (including Oprah) and the 27% who find out about books through Web sites (including Amazon.com). Parker noted that in last year's fourth quarter, when book review sections were trimmed and media exposure for authors was difficult to come by, club mailings "became predictable sources of information."

Direct mail is also more effective for reaching both members and book buyers than Bookspan's own Web sites. Seventeen percent of members and 20% of book buyers said they hear about books from the club's Web sites. Radwell, who has been a leading proponent of incorporating the Web into the club's business model, explained that, while a growing number of its members are using the Web to order books, "catalogues remain the fundamental engine of the business."

Both members and book buyers also said that the clubs introduced them to new authors and book categories and heightened their interest in reading.

Parker added another contribution clubs make to the industry strengthening midlist titles through the growth of niche clubs. Members of a particular club "get a range of solicitations from us. Everything from the bestsellers in a category to the newest authors."

Parker said he hopes the results of the study will convince publishers and others that Bookspan "is proactive" in reaching readers and "adds value" to the entire industry. Radwell believes the study proves that Bookspan's activities do much more to stimulate sales than to cannibalize them.