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Newspapers Continue to Reduce Subscriber Churn
Combination of Factors Contribute to Lower Subscriber Churn
In 2008 the number of subscriptions stops dropped again as it has every year since 2000. Despite more aggressive pricing subscriber churn is at the lowest level since NAA established the industry metric 15 years ago. In other words, subscriber retention continues to improve. In 2008 subscriber churn dropped to 31.8% from 36.5% two years ago. In 2000 subscriber churn was measured at 54.5% in the Circulation Facts, Figures and Logic study.
Newspapers are more focused on selling subscriptions to readers most relevant to their advertisers. This includes defining the market geographically and targeting a reader profile most likely to remain a subscriber. That willingness to let go of the circulation bottom line paid circulation number has allowed newspapers to focus on profitable circulation and to increase prices where it makes sense.
A contributing factor is that in 2008 newspapers made the decision to sell 22% fewer subscriptions than they did two years earlier. (There was hardly any change in the number of people who took the initiative and contacted the newspaper on their own to start a subscription). The number of subscriptions stops dropped again as it has every year since 2000. More effective subscriber retention efforts such recurring payment plans and more select subscription sales are the two factors that correlate with the reduction in subscription stops.
Source: NAA's 2009 Circulation Facts, Figures & Logic
Published
Jun 04 2009, 09:25 AM
by
jmurray
About jmurray
John Murray came to NAA in 1997 after 18 years of newspaper marketing experience. Most of that time was in circulation management positions. But he attributes much of his career success to also having spent time in newspaper promotion, research, strategic planning, community relations, and advertising which provided a broader context to his newspaper marketing expertise.
Prior to NAA John worked at Fort Wayne Newspapers, the business agency for The News Sentinel and Journal Gazette, where he was circulation director for both papers for seven years. After graduation from Louisiana State University he was recruited by Sears for retail management assignments. He began his newspaper career at the Columbus (Ga.) Ledger-Enquirer and was a participant in Knight Ridder’s Circulation Management Development Program.
At NAA John is responsible for Audience Development initatives, and serves as resource to newspaper executives charged with marketing the newspaper to readers, and audience metrics issues. John’s is the staff liaison for the NAA/ ABC Committees and serves as a resource to our advertisers regarding newspaper circulation and readership.
Recent publications produced by the circulation marketing department include: Understanding the Value of Newspapers - The Relationship Between Price Paid and Readership, NAA’s 2009Circulation Facts, Figures and Logic and Independant Contractor Relationships.
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