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| Welcome to the Circulation Blog! This blog is devoted to newspaper execs charged with marketing the newspaper to readers. It focuses on topics related to building readership, improving operations, and audience metrics. We encourage single copy and home delivery stories that demonstrate audience growth and/or increase revenues. Share something new on the distribution side of the business or an innovative way to improve subscriber retention or build relationships with retailers. If it is circulation or audience related, we want to hear about and share it with your colleagues.
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The Best Suscriber Retention Efforts Start Before the Sale
The Best Subscriber Retention Efforts Start Before the Sale
Newspapers are successfully taking steps to improve new subscriber retention before the first copy reaches the home. The latest data from NAA's 2009 Circulation Facts, Figures & Logic Study confirms that newspapers are continuing to reduce subscriber churn. The study will be released next month, but it is clear that newspapers are selling fewer subscriptions, and retention is improving. In 2008 subscriber churn dropped to 31.8% from 36.5% two years earlier and down from 54.5% in the 2000 NAA Circulation Facts, Figures and Logic study. In addition to targeting sales to the best prospects, newspapers continue to tilt sales efforts towards the sales sources with the highest retention and are using incentives to start subscribers with recurring payment programs or advance payment.
In 2008, 38% of the new subscriptions were charged to a credit card or were a bank debit transaction. A third were sold with another form of advance payment and only 28% were started with the agreement to bill the new subscriber. Although this was the first time this question was asked in the biennial survey, it was not that many years ago when the majority of subscriptions sales were sold over the phone and started with a promise to pay.
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Credit/Debit |
Cash |
No Payment |
| Source: NAA Circulation FFL'09 |
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| Industry |
38% |
34% |
28% |
| 25,000 and under |
36 |
40 |
24 |
| 25,001-50,000 |
38 |
33 |
29 |
| 50,001-100,000 |
42 |
28 |
30 |
| 100,001-200,000 |
39 |
23 |
39 |
| 200,001+ |
42 |
18 |
40 |
The subscription sales model is also continuing to evolve into a more diversified effort with a shift towards higher retention sales sources. For the first time in at least 10 years voluntary starts is the largest single source of new subscriptions. This reflects the fact that at a cost per order that has climbed to more than $69.00 newspapers, are selling fewer subscriptions. Telemarketing, although a close second at 24% of new starts, is down from 40% just six years ago. Kiosk sales are a distant third at 12% and no other single source of sales comprises 10% of the total sales model.
The result of this shift is a rebalancing of the sales effort to sources with a higher retention rate. In 2008 average retention rates at the end of a year ranged from 25% for a subscription sold at the door to telemarketing at 33% to internet starts with 53% still active after 52 weeks. With a larger percentage of new subscribers derived from higher retention voluntary, direct mail and internet starts and a smaller share from lower retention telemarketing sales, the model is tilted to better retention of new subscribers for the first year. Combine that with a better share of new starts signing with advance payment and the result is fewer stops from new subscribers which is historically the biggest factor in generating subscriber churn.
Published
Jun 24 2009, 02:20 PM
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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