First impressions and the sensitive ‘nursery’ period

Paula McGrorty

Agenda

Underlying principle

First impressions count

Standard practice

Suggestions

ROI/break even point

Questions

The principle is that by engaging with your subscribers in the early months, you can increase retention and conversion.

Increasing conversion by spending a little more at the start of a contract could have a significant impact on revenue and overall subscriber levels.

In order to increase retention and conversion you need to do something different to make your subscribers feel special.

Underlying Principle

Renewal intention by tenure

Less than 6 mths

6 mths - 1 yr 1-2 yrs 2-4 yrs More than 4 yrs

0102030405060708090

100

53

6575

8086

Tenure

Ren

ewal

%

First impressions count

Deliver on your promises!

Sign up process – how easy is it?

How quickly do subscribers receive confirmation of their order?

How quickly do subscribers get their first issue?

“I ordered and paid for XXXX in October, but it took until January to see the first copy…that’s three months! I know that the magazine comes out every other

month, but why don’t you send out the current issue rather than make us wait for the next one? When I can get a book from Amazon the next day, your

service is prehistoric!”

Standard practice

Welcome letter

Welcome email

Combination of both

Suggestions

HTML emails Renewal at birth Welcome pack Welcome series 1st issue carrier Referral offer Repeat purchase discount

Suggestions

Customer feedback Free gift comp slip Trial issue follow up SMS Early bird renewals Segmented email marketing/newsletters Subscriber discount and benefits Members club

ROI

3 examples of how a small investment in communications with your customers can pay dividends.

1. Follow up welcome email2. 1st issue carrier3. Welcome pack

1. Follow up welcome emailSpending 8p per customer and increasing uplift by 1% can achieve a revenue uplift of 5.5% at the end of year 1.

2. 1st issue carrierSpending 50p per customer and increasing uplift by 3% can achieve a revenue uplift of 14% at the end of year 1.

3. Welcome packSpending £1.70 per customer and increasing uplift by 5% can achieve a revenue uplift of 14% at the end of year 1.

Summary

Do more than the basics Make subscribers feel special Test different options Spending a little more can increase your

conversion rate and will pay for itself