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Charleston Conference
“Selling Academic Materials Directly to End-Users”
Bill Park, CEO
November 2013
Introduction to DeepDyve
Confidential 2
About UsTechnology company
based in Silicon Valley
Our CustomerMillions of “unaffiliated”
professionals in small/mid-sized businesses
Our ServiceRent and read-only
millions of articles from thousands of authoritative journals• Expires 30 days+
• $20 for 5 rental tokens
• $40 per month for 40 rental tokens
DeepDyve Background
Content– 150+ publishers
– 3,000+ journals
– 10M+ articles
Users– 95% .com domains
– 75% outside U.S.
– SME group plans
Confidential 3
How It Works…
Confidential 4
Personalized Tools – “My Homepage”
Confidential 5
Account activity
Account activity
Favorite journals
Favorite journals
Suggested titles
Suggested titles
Folders and listsFolders and lists
Consumerization of Technology
Confidential 6
“Consumerization is the growing tendency for new information technology to emerge first in the consumer market and then spread into business and government organizations.
The emergence of consumer markets as the primary driver of information technology innovation is seen as a major IT industry shift, as large business and government organizations dominated the early decades of computer usage and development.”
“Consumerization is the growing tendency for new information technology to emerge first in the consumer market and then spread into business and government organizations.
The emergence of consumer markets as the primary driver of information technology innovation is seen as a major IT industry shift, as large business and government organizations dominated the early decades of computer usage and development.”
“Consumerization” – Nothing New
Confidential 7
What’s changed?• Microprocessor• Web
• Reach – access more users than ever before• Standards – enables highly efficient development • Cost – lower storage, broadband costs enables new
applications and business models
“Consumerization” of Technology
Confidential 8
Principles of Consumerized Technology• Interfaces designed for the end user•Quick and easy (and free) to try•Highly scalable, i.e. simple and standard
Enterprise vs. Consumer – Differences
Enterprise “Consumer”
Buyer Intermediary End User
Key Criteria ROI Usability
Evaluation approach Measurable “Irrational”
Decision timeline Long Short
Sales, support Vendor Website
New releases Slow Fast
UI Feature-rich Simple
Key features Admin, reporting Tools, personalization
Implementation Custom Standard
Agreement Years Month-to-month
Switching cost High Low
Confidential 9
Better user experience (less is more)Faster to get started (no dependencies)Cheaper to start (and cheaper to stop)
Better user experience (less is more)Faster to get started (no dependencies)Cheaper to start (and cheaper to stop)
End User - Grass is different, not Greener
Simple is complex
Customers are not a phone call away
“AARRR” - It’s hard to be a pirate– Acquisition: where do users come from?
– Activation: what % have “happy” initial experience?
– Retention: do they come back and re-visit?
– Referral: do they like it enough to tell their friends?
– Revenue: can you monetize this behavior?
Confidential 10
“AARRR” @ DeepDyve
Acquisition– Track visitors by source
– Follow visitors thru ‘funnel’ to capture LTV by source
Activation– Track conversion: registration; feature action…
– Test constantly to improve activation
Retention– Email newsletter to announce new features, content
– Search, TOC and other personalized alerts
Referral– Viral links to Twitter, FB, email…
– Considering promotions
Revenue– Pricing and trials
– Features for each service
– UI: wording, look/feel, user-flow…Confidential 11
Unaffiliated End-User Opportunity
# knowledge workers worldwide1: 250M– # STM institutional readers: 10-15M (5%)
Unaffiliated Market Potential– Capture additional 5% of KW’s: 12.5M
– Upsell them: $50-100 / yr
– Market Opportunity: $600M – $1.2B
Confidential 12
1 Mabe MA (2009): Scholarly Publishing. European Review 17(1): 3-22)
Can libraries make services such as DeepDyve available to their (walk-in) patrons?•Value-add service•Honors copyrights•Referral fees
Can libraries make services such as DeepDyve available to their (walk-in) patrons?•Value-add service•Honors copyrights•Referral fees
IT Departments – Parallels for Librarians?
Control– IT departments had to finally “let go” and support a myriad of
apps and devices
Role– IT departments morphed from ‘support’ to ‘service’
Data– IT departments increasingly strategic for managing the growing
areas of data usage and data security
Licensing– Budgeting decentralized; IT department looks at usage, then
licenses ‘retroactively’
Confidential 13