So you signed up for Circulation Management this year and it’s a tough class. The teacher mumbles, she gives out complex assignments the night before they’re due, and it’s hard to see the board from the back of the class.
Lucky for you, I got the final exam from a senior who took the class last year and the answer is: circulation profitability up, print volume flat and digital volume up
But you can’t just write that down. You have to show your work. Here’s a black market copy of the an A+ essay:
To achieve circulation profitability growth, print volume stability, and digital volume growth, the tactics are surprisingly simple, but extremely difficult to implement.
The five elusive strategies and tactics are:
- Optimise marketing channels. Get rid of those low-retaining channels. Let’s admit it, we’re talking 15% to 20% retention. Replace the subscriber churning channels like grocery store kiosks and telemarketing with e-mail. You’ll need a good e-commerce backend to accept the orders, but you’ve found a new, low-cost channel. As the e-mail channel grows, don’t add those orders to the base. Be brave and bring down the low-retaining orders to keep starts flat in the near-term. You’ll benefit in the mid- and long-term.
- Understand acquisition audiences. The e-mail channel is most effective in winning back former subscribers. But, honestly, most of the new orders coming in through all the other channels are churning former subscribers, too. Segment acquisition marketing into at least three groups: recent former subscribers, less recent former subscribers, and never subscribed. Track each segment separately and determine which channels/products/offers are best for each.
- Keep subscribers longer. Get subscribers to pay by an auto-renewing method — credit card or bank draft. Set a goal of increasing the volume of subscribers paying by through auto-renewal by 25% this year. Increasing digital channels will help perpetuate this important shift in the subscriber mix.
- Right size all subscriber pricing. Charge appropriately for all content! Print and digital. Those subscribers who value the content will pay for it. Those subscribers who don’t value it will churn. Know who’s who, and charge accordingly ... but charge. The right mix will maximise circulation volume and revenue.
- Convert Web site traffic into print subscribers. Like e-mail, newspaper Web sites should be considered a valuable and robust channel. Newspaper Web sites offer up the most qualified prospects available to its sister print newspaper. Don’t forget the two requirements to fully leverage the Web site channel: Present a subscription offer link on every page, and send the prospect to a strong e-commerce backend.
Quick, hide the paper. The teacher is looking this way. Good luck on the final!