What kind of “better than free” is your library service?

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A week ago, I asked “what kind of free is your library service?“, in response to Chris Anderson’s Free – why $0.00 is the future of business (published 25 February 2008).

At the end of the post I wondered what we should do now that we have competitors who are offering “free” – which was traditionally our domain. I vaguely touched on the “reputation economy” being a marketplace where the library has value, and the “attention economy” being maybe a marketplace where we should ensure we have value.

Kevin Kelly in his post, better than free (published 31 January 2008) in his The Technium blog talks about eight qualities that are “better than free”. These are things with:

intangible value that we buy when we pay for something that could be free.

At the start of the post, he discusses how the “previous round of wealth” was built on scarcity – that is people were willing to pay for things that were not readily available or had no copies. Now that the Internet is one big copying machine, this model is undermined. He draws an interesting conclusion:

When copies are super abundant, they become worthless.

When copies are super abundant, stuff which can’t be copied becomes scarce and valuable.

He then goes on to list nine intangible qualities that have become more valuable in a “copy saturated world”. These become valuable when attention is what is now worth money:

money in this networked economy does not follow the path of the copies. Rather it follows the path of attention, and attention has its own circuits.

I’m going to look at each of these intangible qualities (which he calls “generatives”) and think about some questions that we may ask about our library services. I’m not suggesting that we start charging for some services that have these intangible qualities – rather that we appreciate and promote these, and make sure our funding bodies know about them.

Trust : Kelly uses this as his starting example to elaborate how these generatives bring customers (which=$$)

Trust cannot be copied. You can’t purchase it. Trust must be earned, over time. It cannot be downloaded. Or faked. Or counterfeited (at least for long). If everything else is equal, you’ll always prefer to deal with someone you can trust.

In our libraries: Do our staff treat our users with respect? If a user contacts us, can they get the material / service they seek in a timely manner … and are they pointed to other sources if we can’t help them?

Immediacy : This is why people still pay for hardcover books and go to the cinema, even though cheaper versions (paperback, DVD) copies will soon be available.

In our libraries:
For items at the start of the demand curve, those “smash hits” not in the Long Tail, we seem to have a disadvantage – with a market that often prefers to buy from their local bookstore or Amazon. We have journal articles in our databases, but they are often embargoed and not available immediately.

What about items in the Long Tail – that are no longer readily available on shelves or journal articles that have been published for a while? I’d argue that these are where we should focus our efforts with Immediacy. Do we have a varied enough collection that users can get the older books they want quickly ? Are our databases readily accessible on our users’ desktops and easily searchable so they can instantly find the older articles they want?

Personalization : Can a free copy be tweaked to suit the consumer exactly? Do they feel like they have personal investment in the business carrying on?

In our libraries:
Here Readers Advisory becomes important. What do you have that will suit me? Is there room for a “Personal Buyer” approach in our libraries- maybe as a income generating extra service to the able-bodied but time poor- where busy users pay to have material chosen and delivered to them.?

Do our staff establish personal rapport with walk in, telephone, IM customers? If users contact us, do they get better than a call centre or an automated voice following a pre-written script?

Are our catalogues able to provide enough information that users can evaluate for themselves if something suits them? Do our users feel like they can help create the library – by commenting on our blog, serving on committees, volunteering, suggesting purchases, rating items or tagging or adding reviews in the catalog ?

Interpretation – To quote the article ” As the old joke goes: software, free. The manual, $10,000 ” .

In our libraries:
Are our reference services staffed with people trained to refine and add value to the question asked? Do information literacy classes and old fashioned “Finding Aids” have a place here? Are we able to add a layer on top of the morass of resources available that suggests which resources are most useful, and arranges these resources in ways that are more easily understood?

Authenticity – Some customers are very concerned with having “the original” or something authorised by the creator. Kelly gives the example of something with an artist’s signature, or an authorised Grateful Dead recording as opposed to a bootlegged one.

In our libraries:
Here is a role for our archives and for our repositories.

Accessibility – For Kelly, this is specifically where someone else maintains, organises and tends the stuff that you could manage for yourself – if you had time and inclination. The key is that you can access it using almost any device whenever you want.

In our libraries:
How about allowing our users to keep a reading record and then export that up to somewhere like Library Thing? What about promoting ourselves as a place that stores the books people want so that their houses don’t get cluttered? How about hosting blogs on behalf of our parent institutions if they need something in-house? Helping community groups set up Flickr pages and Facebook groups?

Embodiment – This is live concerts vs audio recordings. Author talks vs books. Books vs pdfs. Sometimes format matters, and users can’t personally own all formats. Sometimes being with other people is important.

In our libraries:
Books! If you want your information that way, we have it. Book clubs? Book discussions? Author visits? Events? Real people who will exchange pleasantries with you, who you can use as human “sounding boards” to work out what information you need? We have them. The physical feeling of browsing the shelves, as opposed to searching online is a joy to many. I think we could use this aspect better in our publicity, as sometimes our bookstock is the “elephant in the corner” – everyone knows it is there, but no-one talks about it.

Patronage – People want to pay creators. They want to reward what they think is worthy – but it needs to be easy to do. This is the principle behind shareware.

In our libraries:
Do we make it easy for those of small means to show their appreciation in money or kind? Should we? Sometimes patronage can be a problem for libraries – as parent bodies sometimes simply cut the budget by the amount coming from the other source. Do we have mechanisms to get around this? Do we have mechanisms for acknowledging benefactors?

Findability – Again, quoting straight from the post – “…unfound masterpieces are worthless. When there are millions of books, millions of songs, millions of films, millions of applications, millions of everything requesting our attention — and most of it free — being found is valuable”.

In our libraries:
Are there access points to our catalogue in places other than our home page? In places where our users are online? What do we do really well, that no-one else does? (see points above for some ideas) . Are we shouting this from the rooftops? From the right rooftops? Do our opening hours, physical locations and online presence match the current lifestyles of our users? Are our staff visible in our communities outside of our libraries ? Can we promote our abilities to find what people want? Is it still reasonable to expect our users to come to us?

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

One of the reasons I became a librarian was because I wanted to work somewhere that didn’t have as its sole aim directly making money, or a purpose that I found morally hard to swallow. I’ve always muttered to myself vaguely about libraries being worth funding because they increase social capital – but like fairies, not everyone believes that social capital exists.

Ultimately our services cost. I think Kevin Kelly’s analysis is a starting point to better articulate how our costly (to our funding bodies) free (to our users) services have value to both.

What kind of free is your library service?

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Chris Anderson wrote about the Long Tail in Wired magazine in 2004 , encapsulating in economic terms one of Ranganathan’s laws of library science “Every book its reader” . The market for the small number of highly demanded – or “smash hit” – widgets (books, CDs, DVDs) is less than the total market of lower demand items in the latter part of the demand curve (the Long Tail). When you run a business with low inventory and distribution cost, for example Amazon.com with no need for shelf stock, then you can make profit by providing access to items in the Long Tail.

Last week, Chris Anderson published an article in Wired that is forerunner of his next book – Free – why $0.00 is the future of business . It looks at how incorporating some services that are at no cost to the consumer can lead to a healthier bottom line for a corporation. It shows how free can become mandatory to survival if others in the same business are providing services for free.

“Free” is an essential component of our traditional library brand. For the last 6 months I’ve had a question on my Facebook profile for others to answer: “Should libraries still promote as their core brand “a building where there are books loaned for free”?”. I asked it because it is obvious that “building”, “books” and possibly “free” are being redefined.

I had 13 answers – all but one from the library community. There were quite a few yeses, quite a few nos, but many of these in their extended answers said a similar thing – the traditional brand should be a springboard to show people all the other things we offer.

I hadn’t really thought hard about “free” and that it might have a number of models. I thought free was simply free – no charge, end of story.

Here’s Chris Anderson’s “taxonomy of free” – situations where at least some consumers get their service for “free”, even though some others may be making heaps of money elsewhere as a result. The article is rich with references to follow up.

Freemium
Most users get the service for free, but some pay for extra features, thus subsidising all users. Library example: Bestseller Rentals at City of Canning where users pay $5 to immediately access bestsellers, with their pooled funds paying for extra copies that benefit everyone.

Advertising
Businesses pay the organisation to put their name or message where consumers can read them, thus subsidising extra services. Library example: An insurance company sponsoring the National Library of Australia’s Treasures of Australian Libraries travelling exhibition.

Cross subsidies
A product is sold at a very, very low price or given away, but associated consumables are then sold at a high price. Library example: The company Liblime provides free Open Source Library Management Systems like Koha, but then charges for installation, maintenance and support.

Zero marginal cost
Through advances in technology or generosity of the producer, there is virtually no cost to a consumer to consume a product. Library example: Access to items in the public domain via Project Gutenburg .

Labor exchange
To access the service, you do something that increases the usefulness of some other part of the service. Pseudo Library example: Google image labeler . To have the “fun” of playing a game where you see whether you can better describe images than your opponant, you add tags to Google’s image search.

Gift economy
This is often made possible by technological advances that provide zero marginal cost. Some reason other than the monetary economy drives the decision to provide a no-cost service – often altruism. Library Example: The Library Extension Program of the Australian Bureau of Statistics.

Libraries already do some of these kinds of free. Should we be looking at these models to extend or change some services so we can continue to provide other services for “free”? Would it make sense to ask people to write a book review before they can access book reviews in our catalogue, for example ?

I’m no economist, but I’m very interested in a couple of shadowy ideas toward the end of the article, where Anderson suggests that “reputation” and “attention” may have a scarcity that will give them great value in the future.

Libraries traditionally have a fantastic reputation as trustworthy and reliable places – but are we translating this message into the online realm? Will we attract enough of that scarce attention stuff now that other businesses are encroaching on our traditional brand and are all starting to do “free”?