To think of a first-year customer as anything other than a one-time buyer is dangerously presumptive. It’s the second sale that makes a new reader a subscriber. Typically, publishers have just 400 days to recover the cost of acquisitions and develop the profits of renewals. Here’s how to spend them wisely.
and reduce churn
by Richard Riccelli
A renewal plan for Cricket Media — Click to view full size
Renewals are a referendum on content. And marketing promises cannot overcome the lived experience of a subscriber.
However, a well-executed retention campaign that starts early—“at birth”—can add real value to the subscription experience and increase the likelihood of a renewal.
A smart retention program will coordinate messaging across all customer communication channels. And its timing will reflect the subscriber’s (not just the marketer’s) interests.
Concentrate efforts early in the subscription term when anticipation is high. And again late in the subscription when the specter of loss drives response. Use middle efforts to build brand and a more personal relationship with each subscriber.
The best retention strategy is superb content backed by attentive customer service reinforced with interesting and helpful communications.
Early-term renewals…
First efforts are a time to trade on new subscription enthusiasm.
2-for-1 offers—that allow new subscribers who renew at full price to give a second gift subscription at no extra charge—build both renewals and additional audience.
Double-your-savings offers—that extend introductory savings into the second year in exchange for an early renewal—lock in benefits for both the subscriber and publisher.
Midterm renewals…
Use middle-of-subscription promotions to reinforce satisfaction and build brand.
Surveys are often effective promotions. Frame questions to demonstrate editorial value.
Often it makes sense to eliminate a midterm effort in favor of an added promotion early or late in the series. Analytics should guide timing.
Late-term renewals…
Urgency is the essential theme.
Last issue alerts, expiration notices, and reply-by deadlines are the most effective messages.
Avoid sudden price cuts to gain a late renewal. And resist gracing expired subscribers with free issues. These are short-sighted tactics that more often train subscribers to discount future renewal efforts and expect ever-lower rates.
Instead use price framing—the cost per issue, per week, or per month. Attractive price points can also be found by truncating a typical one year term.
Offer established subscribers flexible payment options: Send no money now … Four easy, low-cost payments … etc.
Improve your guarantee.
On/in-issue formats…
Final and penultimate issues wrapped with “Renew now” messages are an efficient way to deliver your message that are certain to gain attention.
While wraps are cost efficient, independent direct mail typically generates more response than ride-along promotions.
Insert cards blown and bound into subscriber copies can also be used to reach loyal readers eager to lock in current rates with an early renewal.
Likewise, have a reader service guide as a standing feature within your publication describing how readers can independently manage their subscription online.
Online renewals
Email renewal notices designed like ordinary plain text messages arrive in primary inboxes more reliably than highly graphic HTML email.
Subject lines are all important. Clear, concise and descriptive messages work better than clever click bait come ons.
Subscribers who renew online are more amenable to auto renew programs than readers who renew by snail mail. Make it your primary—if not only—option.
It pays to incentivize subscribers to renew online in direct mail. Provide a gift for an online response and frame the offer as customer service:“To thank you for saving us the cost of sending repeated reminders by mail, we'd like you to have a free...”
