As someone who once walked the halls of Reader’s Digest, I’m not just saddened by its downfall—I’m downright angry at the missed chances for progress, as this week saw this one-time great institution finally close its doors after 86 years in operation.
Back when I started in the late 1980s as chief statistician, Reader’s Digest was the pinnacle of direct marketing. It was like attending a prestigious university for marketers. Our statistical prowess was unmatched, laying the groundwork for pioneering data planning departments across industries. But while other organisations, like Which? (Consumers’ Association), evolved with the times, Reader’s Digest let innovation slip through its fingers. With better leadership, it could have been a titan like Amazon.
For the uninitiated, Reader’s Digest was once a household staple, celebrated for its concise articles and diverse offerings. However, over the last 30 years, it struggled to keep pace with technological shifts and changing consumer tastes.
In its glory days, Reader’s Digest was omnipresent, its condensed articles captivating readers everywhere. But with the advent of the internet, its audience dwindled. While competitors swiftly adapted to digital platforms, Reader’s Digest clung stubbornly to print.
Despite boasting a world-class statistics department, Reader’s Digest faltered as digital media gained traction. Feeble attempts at an online presence fell short, highlighting the company’s struggle to adapt.
Reader’s Digest had a statistical powerhouse at its core yet failed to leverage it effectively in the digital age. The department’s expertise could have been harnessed to analyse emerging trends, consumer behaviours, and online engagement metrics. By utilising advanced statistical modelling and predictive analytics, Reader’s Digest could have tailored its content and marketing strategies to meet the evolving needs of its audience.
Unfortunately, the company failed to capitalise on its statistical capabilities, opting instead to rely on outdated methods and traditional marketing channels. While competitors embraced data-driven decision-making, Reader’s Digest lagged behind, ultimately contributing to its downfall.
In 2013, after years of decline, Reader’s Digest declared bankruptcy – a heartbreaking finale for a once-revered institution. It’s a sobering lesson that in today’s fast-paced world, stagnation spells doom, regardless of past glory.
Bill Portlock is founder and CEO of Metrix Data Science
