Targeting the At-Risk Prospect

Every newspaper market has them - the customers that constantly churn, waiting for the phone to ring, the mail to arrive or the kid to knock on the door with that next “special offer” that includes a large discount with the subscription. Sometimes we refer to these people as cheap or the euphemistic “price-sensitive” and readily agree to take their 50 percent-off (or more) money for the thirteen week order knowing full well that they’ll stop – or expire as non-pay, when this initial term is complete. But we’ll get them back with the next discounted offer, anywhere between two weeks to two months after they stop, and we’ll also pay the commission to our sales people for reacquiring the same prospect three or four times a year. After all, we need the subscribers and they’re better than the other “at-risk” group, the non-payers because they actually pay for their thirteen week subscription term. But what if there was a way to break the cycle? What if we targeted these “at-risk” customers with a special offer?

At the Idaho Press-Tribune in Nampa, that’s just what they did using a multi-channeling selling approach. The Press-Tribune targeted 1500 ex-customers that fell into their at-risk pool. These folks were classified among non-payers, churners or grace customers. Once identified, the Press Tribune devised a multi-channel sales approach using direct mail, door to door, traditional telemarketing and retention telemarketing. Over a six week period in November/December of 2004 these 1500 potential customers received a highly targeted message through these four means and were offered a substantial discount. The stipulation for the offer was that the customer had to pay in advance, either the discounted rate or through an automatic renewal program (EZ Pay), and they had to agree to a one-year term length.

The program netted 326 (21.7%) paid in advance subscribers. After six months, only eight of the 326 had stopped delivery. The program in effect had paid for itself through the revenue that was brought in at the time of sale. In addition, it alleviated the churn cycle for these 1500 customers and the recurring expenses associated with acquiring, stopping and then reacquiring the customers down the road.

Revisiting the program more than a year after it was implemented; NAA learned the following from Laura Stewart, Circulation Director at the Idaho Press-Tribune. Of the 326 original customers, 183 renewed again at the discounted rate, 57 became permanent stops (29 of those are system generated non-pays) and the remaining 78 are either in grace, on vacation or have not yet completed their annual term. In addition, the IPT targeted an additional 1500 similar customers in May and were able to sell 220 (14.7%). As of December, 185 were still on the subscriber file.

Key components of the program were identifying the “at-risk” group, developing a multi-channel approach to ensure that the potential customers received the message/offer multiple times through various sales channels and collecting the money up front at the time of sale for an extended term.

Learn more about this program at http://www.naa.org/sarc/Idaho.htm and remember to tell us about one of your subscriber acquisition and retention program by clicking on http://www.naa.org/sarc/suggest.html.