AUDIO: Demand is still strong for audiobooks despite looming ‘digital cliff’

BY TODD HOYT, chief executive officer, eChristian

Much has been made recently in the national news regarding the “fiscal cliff” in front of us as a country. The automatic cuts in spending and increase in taxes has created such a “cliff” that if we go over it, there will be irreparable damage to the U.S. economy.

Much has been made of a “digital cliff” ahead of us as well. The digital cliff represents the thinking that physical products will cease to exist and that the world will only consume digital products and negate the need for physical retail stores.

In retailing, sales data continues to show a migration from physical to digital. This is true in books and true in audio. But there is more to the story beneath the surface.

Audiobooks have some similarities to the issues that face print: cannibalization of physical sales, medium- to higher-priced retail titles facing severe pressure and declining retail shelf space. How do we as a publisher and you as a retailer work to address these important issues?

In the case of audiobooks, the good news is that consumer demand is strong and growing, and audiobook consumers tend to remain among the most active and repeat customers. While the 2012 Audio Publishers Association Sales Survey shows a slight decline in physical sales units, the revenue from CDs is still 53%, more than half of the  audio market. There is and will continue to be a demand for CD audiobooks, and the revenue is healthy. The number-one consumer of audiobooks is the commuter, and most commuters tend to listen through their car CD player.

So, here are some ideas:

Selection. As mentioned, audiobook purchasers tend to consume quite a few audiobooks (and regular books, for that matter). Stock and display a variety of genres and price points that are similar to the print books your store is successful with.

Suggestive selling. The primary reason that a book consumer has not purchased an audiobook is because they hadn’t thought about it. Many people want to read more, but cannot fit it into their day. Listening while driving, exercising or relaxing is another way to engage more of the great content from leading Christian writers.

Sale. Running promotions and sales is a surefire way to attract customers to this category. Retail audiobook pricing has come down in the last several years. In fact, christianaudio has more than 20 titles from popular authors (John Maxwell, John Piper, Stormie Omartian, Beverly Lewis) that start at just $5.98, and most retail-priced titles range from $15 to $25.

Service. Nothing is more important than a knowledgeable salesperson. Most audiobook publishers are willing to sample audiobooks to accounts specifically so salespeople can better understand the distinctives and unique qualities of audiobooks.

Sound. When I am in Christian stores, I tend to hear music from leading Christian artists. Have you ever considered playing an audiobook or audio Bible? Playing a dramatized audio Bible or The Screwtape Letters or the latest releases from Karen Kingsbury, Francis Chan or Max Lucado would show the variety available and introduce a captive audience to another reason to come back into your store.

Audiobooks need to be a part of your overall strategy to retain your customer, grow sales and become a destination.

Sarah Young’s Jesus Calling took the Audio category for eChristian in last year’s Retailers Choice Awards.

Editor’s note: Christian Retailing asked Retailers Choice Awards winners from 2012 to look ahead to the coming year in their particular product category. We share these segments with you online and in print in our January and February issues.

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