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Reaching Consumers Beyond Subscription Billing

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

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Reaching Consumers Beyond Subscription Billing

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

The publishing industry has long recognized the need for innovative ways of reaching

consumers. When readers shifted from printed to digital content, publishers faced the

challenge of monetizing this new landscape. Some try to subsist solely on ads while

others use subscription billing practices to provide consistent revenue. Often, businesses

employing the latter method establish a paywall on their websites that prevents or limits

access to nonsubscribers.

This presents a challenge as these organizations essentially cut off a large portion of

potential readers. Those that completely restrict access to nonsubscribers ask new

customers to take a huge gamble. These users are required sign up before experiencing

the content in question, and they have no idea if what they'll receive provides enough

value for the monthly cost.

Even with a healthy number of subscribers, a strict paywall method does poorly for many

publications. Despite industry belief that its subscription revenue and coverage of

financial news would protect it, the Financial Times is taking some extreme cost-saving

measures, Fortune reported. Current job openings will be placed on hold, part-time staff

members won't be hired as frequently, travel and entertainment costs will be slashed and

the entire print edition will be streamlined. Yet in 2013, the newspaper was one of the first

to receive over half its revenue from digital subscriptions and other offers. To see how the

Financial Times fell from a leader to its position today, one must understand that print

advertising is far more profitable than digital.

3 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

Essentially, advertisers act in line with the belief that the print industry is dying and digital

will take its place. They're flocking to the cheaper online media, leaving print editions of

publications struggling to replace the revenue they once had. Therefore, even though the

Financial Times has a large number of digital subscribers, it still struggles from a

shrinking number of traditional ads.

Still, as Fortune acknowledged, having a healthy amount of subscribers is definitely a

benefit. The question now becomes one of whether or not the Financial Times can

acquire enough new subscribers to compensate for the loss of print advertising.

"How can publishers

maximize subscriber

revenue and

increase customer

acquisition rates?"

Reaching nonsubscribers

The dilemma in such cases is simple to grasp: How can

publishers maximize subscriber revenue with practices that

also increase customer acquisition rates? Some

organizations offer a select few free articles, but The

Sunday Times has a different answer. According to

DigiDay, the publishing company is attempting to reach –

and eventually convert – new audiences beyond its current

readers on platforms other than its website.

"There are ways of speaking through the paywall to beckon readers to our content,"

Eleanor Mills, The Sunday Times' editorial director, said to DigiDay. "We're trying

different kinds of approaches to get more of a digital audience."

4 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

The Sunday Times attempts to increase its followers on social media and through its

other brands. The food print supplement Dish is a favorite among millennials, Mills said,

and the publisher is launching a separate travel site as well. Interestingly, The Sunday

Times is also publishing content on separate media sites like Apple News. In addition,

subscribers can share articles with their friends through Facebook and Twitter, enabling

those without a subscription to read the articles.

"Our readers are our best advocates," the publication's head of digital Alan Hunter told

DigiDay.

Hunter believes The Sunday Times' current readers are a key link to acquiring new

subscribers. He admitted convincing consumers to switch from one free article to paying

a subscription fee for unlimited access is a long journey.

"We, like others, are constantly looking to find the pieces of the jigsaw and how to

optimize it," he further explained to DigiDay.

Customer acquisition on their terms

The Sunday Times uses an important concept that can help businesses on a recurring

billing model succeed in increasing their subscribers. Instead of fighting against readers

– both current and future – it is working with them by providing access to trial content on

their terms. Letting current customers share content through social media is a great way

to reach new readers in an environment they are comfortable with.

5 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

"Listening to

customer wants is

essential for

retention.“

The Sunday Times also did something essential for retaining

current customers: It listened to what they wanted. As Hunter

noted, satisfying current customers is a great way to get them

to mention the publication to friends and family. Subscribers to

The Sunday Times asked the publisher to allow them to share

articles on social media, and the company complied.

Other businesses should try a similar approach to acquire and retain customers. Their

satisfaction is important to success using a subscription billing model.

While The Sunday Times understands the current struggles of the publishing industry, it

also knows it needs to take action to remain relevant and keep readership levels. The

publication is approaching new readers on their terms, which is key to obtaining new

subscribers.

6 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

About the Author: Bryta Schulz

Bryta joined Vindicia in 2013 and serves as Senior Vice

President of Marketing. She is responsible for building brand

awareness, creating go-to-market strategy and promotion, and

driving growth. With over a decade of executive level marketing,

product management and PR experience, Bryta has led

marketing teams in enterprise technology and SaaS companies.

Her experience includes heading product marketing at GoGrid,

PGP, RSA and Symantec and business development and

product management positions at Xcert, Thales, and

Persistence Software. Bryta holds a MA in Translation from the

Johannes Gutenberg University Mainz and an MBA from the

University of Reutlingen.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.