Tuesday, May 15, 2007

The long tail by Christopher Anderson

There are people that need to know the "why" of every phenomenon, and that's cool. There are a lot of people writing books that explain the "why" of every phenomenon, so eventually the two groups meet up somewhere and congratulate each other for their intellectual curiosity.

There are also a lot of people who write business books. You know the books: the ones that will teach you how to run your business bigger, faster, stronger, better? And, there are people looking to run their businesses bigger, faster, strong, and better and who look for any competitive edge they can get.

The Long Tail by Christopher Anderson explains, at great length, the ways in which the internet has democratized retail. In brick-and-mortar stores, he explains, 20 percent of the items provide 80 percent of sales. It is for this reason that most brick-and-mortar stores only stock things that will appeal to the mainest of mainstream consumers. In an online environment, retailers can provide more options. And, even if a small number of people chose any one of those options, they can provide a lot of revenue. The infinite number of choices is what creates "the long tail" from which this book receives its name.

I don't dispute Anderson's claim in the least. As anecdotal evidence, I have almost completely stopped buying CDs from brick-and-mortar stores and buy almost exclusively from iTunes. Why? Because I can't find the titles I'm looking for at Target. And, at $0.99 a song or $9.99 an album, my dollars go a lot farther.

What interested me most about Anderson's book, though, was the idea that online retailers have a distinct advantage over brick-and-mortar retailers in the way in which they can re-arrange their products based on a consumer's needs. If you're looking for an album at Amazon.com, you can find it by genre, by artist, by record label, or by recording date and any way you choose to search for it is "right. And, when you find what you're looking for, Amazon.com will recommend 5 similar artists that you might like. If you walk into Best Buy, you have to figure out Best Buy's organizational scheme or you have to ask someone for help. And, you're probably not going to get recommendations tailored to your specific interests.

I think this book was an interesting intellectual exercise, but I'm not sure how it would change the business model of a corporation. Most large brick-and-mortar retailers have an online face that can offer consumers an alternative shopping experience and some smaller brick-and-mortar retailers can't afford an online presence. Still, in the age where people are looking for an edge, this book might offer them hope.

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