Online Marketing: Its up Its Good

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Online Marketing Its up! Its Good!
Todays Speakers Tim Ruder Relationship and
Procurement Mick Cohen Subscriber Service Dave
Elder Subscriber Retention Dave Phillips NAA
Print and Online Update Committee Jim Lamm
Team Leader/Bradenton Herald Jeanne Smith
Orlando Sentinel Linnie Pride Community
Newspaper Holdings
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Eat Your Own Dog Food

• Using web advertising to sell newspaper
  subscriptions.

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Eat Your Own Dog Food

• Ewww.
• Hmmm.
• Not bad.
• This is pretty good stuff
• I love my dog food
• Wanna buy some?

4
Eat Your Own Dog Food

• Ewww.
• Hmmm.
• Not bad.
• This is pretty good stuff
• I love my dog food
• Wanna buy some?

5
Eat Your Own Dog Food

• Ewww.
• Hmmm.
• Not bad.
• This is pretty good stuff
• I love my dog food
• Wanna buy some?

6
Eat Your Own Dog Food

• Ewww.
• Hmmm.
• Not bad.
• This is pretty good stuff
• I love my dog food
• Wanna buy some?

7
Eat Your Own Dog Food

• Ewww.
• Hmmm.
• Not bad.
• This is pretty good stuff
• I love my dog food
• Wanna buy some?

8
Eat Your Own Dog Food

• Ewww.
• Hmmm.
• Not bad.
• This is pretty good stuff
• I love my dog food
• Wanna buy some?

9
Eat Your Own Dog Food

• Ewww.
• Hmmm.
• Not bad.
• This is pretty good stuff
• I love my dog food
• Wanna buy some?

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Know the best ingredients
The washingtonpost.com audience bests TV, cable,
radio and magazines in the Washington DMA
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washingtonpost.com outreaches City Papers
Washington DMA audience

• In an average week, washingtonpost.com reaches
• Nearly four times as many DMA adults as City
  Paper
• Nearly four times as many adults 1834
• Nearly five times as many adults with HHI
  75,000
• And four times as many adults 2554

Over a 30-day period, over 1.2 million Washington
DMA adults access washingtonpost.com
Scarborough Research, Release 1, 2002 past 7
days, average weekly issue
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washingtonpost.com outreaches Washingtonian
MagazinesWashington DMA audience

• In an average month, three times as many
  Washington DMA adults use washingtonpost.com
  compared to Washingtonian.
• washingtonpost.com reaches more than three times
  as many adults 2554
• More than three times as many adults with HHI
  75,000
• More than twice as many adults with HHI 100,000
  
• More than twice as many women
• More than twice as many home owners

Scarborough Research, Release 1, 2002 past 30
daysaverage monthly issue
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washingtonpost.com outreaches The Washington
Business Journals Washington DMA audience

• In an average week, washingtonpost.com reaches
• More than 14 times as many DMA adults
• More than 16 times as many adults with HHI of
  100K
• More than 15 times as many professionals/managers
• More than 13 times as many post graduates

Scarborough Research, Release 1, 2002 past week
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washingtonpost.coms weekly adult audience usage
is greater than any radio station in the
Washington DMA

• Among adults 18, washingtonpost.com has a higher
  seven-day audience than any Washington area radio
  station
• More than 700,000 Washington DMA adults use
  washingtonpost.comin an average week

Scarborough Research, Release 1, 2002 past 7
days (Seven day cumulative radio audiences
(6AMmidnight MS) Top 5 commercial radio
stations among adults 18
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washingtonpost.coms usage exceeds prime time
cable among Washington DMA Adults

• Over 1.2 million Washington DMA adults use
  washingtonpost.com in an average month
• Thats more than twice as many adults than are
  reached through 100 prime time spots on
  Discovery, AE, The Weather Channel, USA Network
  and FOX News
• And thats virtually the same as can be reached
  with 100 spots on CNN, TNT, ESPN, TBS, and the
  History Channel

Scarborough Research, Release 1, 2002 past 30
days
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washingtonpost.coms weekly 18 audience usage
exceeds that of daytime broadcast television

• More Washington DMA adults 18 use
  washingtonpost.com in an average week than the
  five-day cumulative audience of any Washington
  area television station during the non-prime time
  dayparts.

Scarborough Research, Release 1, 2002 past 7
days Five day cumulative DMA TV audiences (MF)
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With the right ingredients, dog food
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tastes great!
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Use the web products you sell

• Apply learning of successful online advertising
• Targeting contextual integration work well
• Web-based subscription services support retention
  customer relationship

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Context
Association with brand content is ubiquitous
Impressions on more than 150 million pageviews
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Audience Targeting
Non-subscribers in circulation area receive
offers via e-mail
Mailed monthly to newly registered
non-subscribers in the local market. Open rate
nearly 50, response rate 4
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Audience Targeting
and web advertising. Offers are integrated with
offline campaign elements. Limiting exposure to
non-subscribers improves efficiency.
More than 16,000 web starts in 2002.
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Audience Targeting
Existing subscribers are targeted with customer
service messages
More than 10,000 customer service referrals per
month.
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Personalization
Users influence the relationship they want
through personalization, supporting customer
service and loyalty.
31,000 have personalized their start page
w/subscriber services
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Audience Targeting
Brand, content and promotional messages are
targeted to local users, regardless of
subscription status.
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Key takeaways

• Know the ingredients (hint research and measure
  your audience, build case studies of best web
  practices)
• Deliver the right message, to the right people at
  the right time and in the right context

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Online Marketing
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Customer Self-Service for Newspapers Mick
Cohen The San Francisco Chronicle Mcohen_at_sfchronic
le.com
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Todays Presentation

• Why is it important
• Economics / ROI
• San Francisco case study
• Opportunities beyond customer service

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Managing Customer Expectations

• Modalis Research Technologies survey of 1,000
  respondents who had at least one online customer
  service experience in the previous 6 months.
• 50 would rather resolve an issue over the Web
  than by phone
• 45 say when they need help quickly, the first
  place they go is a companys website

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Customer Self-Service Benefits

• Reducing Operating Expense
• Staffing, Facility
• Increase Revenue
• Extend business hours, market reach
• Free CSRs to focus on revenue generation
• Promote customer usage and increase loyalty
• Collect marketing intelligence

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Call Center Benchmarks by Industry
Source Purdue University
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Lower cost per transaction

• Web self-service transaction average 24
• IVR transaction average 45 per call or session
• Email transaction average 3.00
• Text chat average 7.00
• Live phone interaction average 5.50 per call
• Source BIT Group

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Typical Web Self-Service Savings Annually
of customer service transactions volume through
Web
Source BIT Group
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San Francisco Case Study

• Live CSR cost per call averages 3.25
• 120,000 calls per month
• IVR handling 40
• Subscriber Concierge Annual Savings
• Customers using the web site estimated at 75,000
  annually.
• Results Estimated annual savings of 142,000.

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Subscriber Concierge

• 24/7 customer service Events include
• vacations holds
• reporting missed papers
• report service issues
• address changes
• mange subscription type
• receive new promotional offers
• converting to EZPay or enrolling in loyalty
  programs
• acquiring new subs
• NIE donations

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Subscriber Concierge

• Benefits include
• Direct integration with billing system
• Automation of internet new starts and working on
  solicitor starts
• In Q1 2003 will launch Email campaign management
  targeting special promotions and offers to loyal
  subscribers

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Security Concerns

• Two levels of subscriber verification
• Customer Service Events
• Account Management
• Secure site and encryption
• Clearly written privacy statement
• Users opt-in to receive promotional
  communications

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Transaction Volume
Expect to exceed our goal of 75,000 annually.
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Transactions by Time
20 of all transactions occur prior to the call
center opening.
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Distribution by event type
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Opportunities beyond customer service

• Increase subscriber retention
• Special offers and promotions section
• Increase usage though content alerts
• Headlines, coupon values, special sections
• Increase revenues
• Value added offers
• Infinity marketing
• Email marketing
• Collected new 35,000 email address!

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Online Marketing
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Utilizing the Internet to Enhance Retention

• Customer Service
• Communication
• Contests

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Preference Communicating Online
Would Prefer to go online
Contact Customer Service
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96,000
Pay for Orlando Sentinel Subscription
66,000
24
0
25
50
75
Base Adults in Orlando PMA Who Are Online Users
and Have Orlando Sentinel Home-Delivered
(276,000 -- 21). Source Orlando Market Track,
Conducted by Belden Associates.
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Email Marketing - The Past
The Orlando Sentinel Reader Rewards E-mail
Update Another benefit of subscribing to The
Orlando Sentinel. Hello David Elder! As part of
your subscription to The Orlando Sentinel, you
are receiving our Reader Rewards E-mail update.
We received your e-mail address when you signed
up for service, participated in one of our
contests or interacted with us online. The
Orlando Sentinel will not share your e-mail
address with any outside companies. IN THIS
ISSUE Upcoming Highlights
Oscars Summer Cruises in the TRAVEL
section Baseball Special Section
Special edition of HOMES Gators,
'Canes Gearing up for the Sweet Sixteen
Access Magazine Changing your
subscription Reader Rewards Offer
More Sentinel Contests E-Mail Update
Services If you do not wish to receive
future updates, you can unsubscribe by simply
sending a blank e-mail to leave-reader-rewards-66
04O_at_webmail.OrlandoSentinel.com
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Email Marketing - The Past

• Utilized outside vendor
• Text based
• Sent bi-weekly
• Sent to approximately 10,000 subscribers
• Elements included
• Upcoming editorial content
• Contest/incentive
• Tips on how to interact with the newspaper

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Email Marketing - The Present
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Email Marketing - The Present

• In-house process
• Utilize HTML
• Sent bi-weekly
• Sent to approximately 22,000 subscribers
• Elements include
• Upcoming editorial content
• Contest/incentive
• Tips on how to interact with the newspaper
• Conditional text for custom messages

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Email Marketing - The Future
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Email Marketing - The Future

• Continue Reader Rewards email
• Thank you/Welcome letter
• Payment reminders
• Upgrade/Auto Pay campaigns
• On-line rewards
• Subscriber surveys

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Contest Results

• Ten pair of tickets to Southern Womens Show -
  220 entries
• Thirty pair of tickets to AKC Dog Show - 298
  entries
• Ten pair of tickets to Boat Show - 312 entries
• Twenty-five Blockbuster Cards good for one free
  rental - 752 entries
• Ten family four packs of tickets to Kennedy Space
  Center - 875 entries
• Four Busch Gardens and Sea World Passport to Fun
  passes - 922 entries

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Email address sources

• Move Contests Online
• 1st Quarter - 5,924 responses - 1,306 new email
  addresses
• 2nd Quarter - 4,805 responses - 793 new email
  addresses
• 3rd Quarter - 5,091 responses - 909 new email
  addresses
• New Starts - collected over 2,700 emails in 1st
  quarter 2002
• Purchase from outside source
• Anytime someone (subscribers and non-subscribers)
  interact with the newspaper

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Benefits

• Newspaper
• Reduce churn/improve tenure
• Reduce calls to customer service
• Ability to target
• Low cost
• Subscriber
• Unobtrusive
• Meets expectations

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Online Marketing
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Building on Come Together

• Successful project in 2001
• Demonstrated the need for collaboration between
  Print and Online managers
• Provided checklists and action items that
  managers could use
• Showed examples of what to do and not do

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Come Together II, the sequel

• Or, Get it Together
• The industry has improved
• But there is much to do
• Internet users are getting more sophisticated
• Our customers expect more

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New project for 2003

• Five Major Areas of Study
• Acquisition of Subscribers via Online
• Customer Self-Service via Online
• Retention/Renewals
• Technical Issues
• Ethics / Privacy

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Key elements of project

• Hundred Site Review
• Acquisition service effectiveness
• Special tests
• Can 3rd party sites help acquisition?
• Circulation Executive Survey
• More than 415 participants
• Best practices
• Help develop templates for success

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Hundred Site Review Early Results

• Key question Are we making progress?
• Used same newspapers in 2001 review
• 22 didnt have SUBSCRIBE link above fold
• 7 percent didnt have link on home page at all
• 52 didnt have link above fold in 2001.
• Mediocre quality control of circulation areas
• Many broken pages/ broken links
• Implied lack of ownership
• Who is responsible?

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Hundred Site Review Early Results

• Still confusion in customer service links
• Many contact us links have no information
  about timely delivery complaint options
• Many customer service areas stop after the
  subscription area.

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Hundred Site Review Early Results

• Customer service link terms that work
• Customer service
• Delivery problems?
• Contact Circulation
• Late / missing newspaper?
• Circulation issues
• Subscription issues
• Report a late paper
• Carrier complaints
• Didnt get your paper?

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Hundred Site Review Early Results

• Customer service link terms that dont work
• Contact us
• FAQ
• Help
• Newspaper help
• Frequently didnt contain circulation advice
• Circulation

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Executive Survey Early Results

• Customer Service Center
• Not as widespread as it should be
• 62 offer online customer service area
• 34 do not
• 4 dont know
• Internet-savvy consumers expect a complete
  customer service center

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Executive Survey Early Results

• Executives using online for acquisition
• The top methods
• Pop-up ads 54
• Small ad or button on side of page 52
• Text or button at top 47

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Executive Survey Early Results

• Weekly start orders consistent
• No major shifts from last survey
• 58 report 1-10 starts generated weekly
• 19 report 11-25 starts
• 7 report 26-50 starts
• Question Is this acceptable

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Executive Survey Early Results

• E-mail opportunity
• Only 19 say their newspapers offer an e-mail
  newsletter
• E-mail proven an effective method of selling
• Of those newspapers that send out e-mail
  newsletter
• 18 report no promo or advertising for
  subscriptions
• 24 report they dont know

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Coolsavings.com Early Results

• Program generates responses
• However, results are inconsistent
• Same offer, different results
• Get 2 weeks free
• Chicago Tribune 3,293
• Cincinnati Enquirer 492
• More research will be conducted

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Ongoing Research

• Hundred Site Review
• Testing each site
• Executive Survey
• What deals are being offered online?
• What is being tracked?
• What services are being offered?
• Registration and online subscriptions?

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Ongoing Research

• Best practices
• How they get more starts
• Discussions on privacy and ethics
• What circulation executives should know

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Whats Coming?

• Watch for rolling releases
• White papers
• CD Rom
• Web releases
• Email updates

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We still need your help

• If you havent taken the survey, take it now
• www.digitalfuturist.com/naaprintonline.html
• If you have a story to tell
• Print/Online Committee
• Dave Phillips and Rosie Cassidy, co-chairs
• John Murray, NAA VP/Circulation
• Consultants
• Howard Finberg Leah Gentry
• Finberg-Gentry, the Digital Futurist Consultancy
• finberg_at_digitalfuturist.com

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THANK YOU Questions?