Why modeling non-paying stops is a proactive idea

The Goal

This promotion aimed at a group of subscribers that some newspapers might not focus on: people who match the profile of non-paying customers. The objective of The Tennessean, located in Nashville, Tenn. (181,343; 250,575) was to convert customers who might otherwise become non-paying stops, to good customers on EZ Pay.

The Story

PRIZM codes were assigned to former customers stopped for non-payment.  The codes identified as potentially high risk were then applied to the current customer base.  A direct mail letter was then crafted based on the general demographics of the group.  The letter had a perforated coupon and reply envelope enclosed to ease the response process.

“One challenge that we had to overcome was matching the PRIZM codes to both the stopped and current customers.  Also, the program was so much more successful than anticipated that we simply did not have enough premiums on hand and had to make two reorders,” said Circulation Sales and Marketing Manager Tim Baumgartner.

As of July of 2004, the response rate was 4.53 percent.  A total of 1,794 customers made conversions to EZ Pay.

The Moral of the Story

Modeling former non-paying customers can help convert at-risk subscribers to profitable long-term customers.