Content provided in partnership with

Media Industry

Customers Comment on Subscription Marketing

Circulation Management, Jan 1, 2004

Byline: KEVIN WHELAN

Increasing the number of subscriptions in a cost-effective manner is always on circulators' minds. A good look at how consumers - our customers - view subscription marketing may prove helpful to circulators looking for new strategies and tactics.

CM revisits the CircTrack Consumer Survey 2003 for its insights into the customer viewpoint. Here, in our second column, we have asked Tom Masterson, VP-worldwide circulation director, Business Week, to comment on what subscribers say about our subscription marketing efforts.

Readers will find some consumer reactions surprising, and perhaps not always in sync with their experience. Here's what consumers say:

Most Popular Articles in Business: Research and Markets : Tesco Plc - SWOT Framework Analysis; Do Us a Flavor - Ben & Jerry's Issues a Call for Euphoric New Flavors; eBay made easy: ready to start an eBay business? These 5 simple steps will ...; Katrina's lawsuit surge: a legal battle to force insurers to pay for flood ...; Wal-Mart's newest distribution center opened last month near the southwest ...; More »

Sourcing: The preferred method to subscribe to a consumer magazine among magazine subscribers is the insert card (36%), followed by direct contact from the publisher (26%), and third party contact - agent (11%).

MASTERSON: It's encouraging that 62% report that they prefer to order through the publisher and that only 11% prefer third party agents. However, the reality for most large consumer magazines is that much more than 11% of their subscriptions are sourced through agents.

Direct mail: Of those who subscribed to a consumer magazine in the last 12 months after receiving a mail solicitation, 61% recall price discounts being offered. 63% of subscribers are "most" motivated to subscribe to a mail offer because of a price discount.

MASTERSON: This finding highlights that subscribers responding to direct mail already have familiarity with the magazine from somewhere else. Maybe they are expires or occasional newsstand buyers, or saw a public place copy somewhere. That is why voucher packages work so well: they stress the price and offer, not the editorial product.

In fact, often, adding editorial sell copy to a voucher will depress response. That makes for efficient direct mail campaigns. However, I think there are some hidden downsides. One is that we don't do enough to encourage product sampling among consumer segments who should be reading our magazines (e.g. younger readers).

Time of year: 60% of consumer magazine subscribers are not affected by the time of the year in which they receive mail solicitations for magazine subscriptions. However, 22% are "most receptive" in the fall/winter.

MASTERSON: This finding tells us that while there is real seasonality to direct mail, there is plenty of opportunity in the rest of the year. The purchasing decision is an impulse. In my opinion, you can have successful mailings in months that other mailers don't mail in.

Sweepstakes: 41% of consumer magazine subscribers used sweepstakes to subscribe to a magazine in the last three years. 23% of these were "most motivated" to subscribe because of a cash prize.

84% of sweeps subscribers said the sweepstakes prize can be something of value other than cash. 28% said that it would take a minimum of $500K-1MM to "excite" them to enter the sweepstakes and want to order magazines. 30% said it would take $100-500K to "excite" them to enter and order magazines.

MASTERSON: This is just amazing and I can not explain it! It's hard to believe that 41% of consumers saw - much less used - a magazine sweepstakes in the last three years.

Internet subscriptions: 43% of magazine subscribers "would" subscribe and/or renew their subscriptions via the Internet. Yet, only 11% have done so.

MASTERSON: Three thoughts come to mind: (1) It is a small, but growing - and I would add, very valuable demographic that uses the Internet to renew or to manage their subscriptions; (2) We publishers have not marketed the benefits and opportunity to use Web self service very well; and (3) A successful renewal strategy will use a mix of different media: traditional mail, cover wraps, email renewals and possibly (gasp) even a telephone call.

Subscription process: 73% of magazine subscribers said that they "preview" a magazine before they subscribe to it. Of these, 25% buy a single copy first; 24% buy a short-term subscription; 17% borrow a copy from a friend; 5% read at the bookstore; and 2% read at the library.

MASTERSON: This confirms the long-term benefit of providing opportunities for product sampling.

Gift subscriptions: Gift subscriptions to a consumer magazine were given by 23% of magazine subscribers in the past 12 months. 79% of the gift subscriptions given were for a birthday or Christmas. 57% of "gift givers" said price discounts were the biggest motivation to give more gift subscriptions.

MASTERSON: If you don't have a healthy gift business, you are missing an opportunity.

Premiums: Price discounts were preferred by 58% of consumer magazine subscribers when they subscribe. 21% prefer an extended-term subscription, and 14% prefer some sort of gift.

Home delivery: 97% of consumer magazine subscribers are satisfied with the home delivery of their consumer magazines. Only 17% said they would pay a higher subscription price in return for quicker home delivery.

MASTERSON: Most people expect prompt delivery of a magazine as part of the subscription deal. So I am not surprised that most will not pay extra for quicker delivery.

Media Industry

Customers Comment on Subscription Marketing

Circulation Management, Jan 1, 2004

Find Research Guides for:

Find Featured Titles for: Sports

Most Popular Articles in Business

Most Popular Publications in Business