Subscription Marketing: A Comprehensive "How To" Overview

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Bill Baird

Presented to API

Content MarketingSuccess Factors

Content Marketing Trends Content Value Assessment Marketing Best Practices Infrastructure Planning

What’s in This For You

$5.88b Annual B2C Content Sales 76% of content sites offer Free Trial Profitability Timeframe

◦16-20% within 3 mo.◦44% within 6 mo.◦57% within a year

Majority of co’s > $1mm fell into this category

Big Picture Trends

Source: Subscription Site Insider 2010 Study

Which Content Will They Pay for?

Type 2:Mission-Critical

Decision Support

Type 3:Interactive

Functionality

Functional Exclusivity

&

User Need

Type 1:Searchable Text / Visual Content

Rich data, online software, multi-player gaming (Match.com, AviationWeek, LinkedIn, McAfee.com, GoToMyPC, Techtracker.com)

WSJ, FT.com, Angie’s List, Consumer Reports, Zagats

Traditional Mass Media

Publicly-Reported User Growth, 2012

Producing Traffic: Where to Invest?Producing Traffic:

Where to Invest?

Conversion Metrics

Registration Techniques

• Start Far in Advance of Launch• Make it Ubiquitous and Easy• Provide a reason to register

– Tier Content Access– Newsletter(s)– Interactive Features– Table of Contents or Digest– Special Report– Social Media Features– Sweepstakes

• DHTML pop-up for Visitors• Multivariate or A/B Testing

Page

9

Paid Content

Free Content

Conversion Best Practices: Barrier Wall“What Are They? Why Do They Work?”

Bait

On-Site Conversion Best Practices

Page 10

• Match expectations between pages

• Make it easy• Capture only email at first• Field above the fold

• Use design to guide

the eye• Eye flows left to right

Get Ready …Get Set ….

The Mirror Trick Color Mass Position Clear Call to Action

Registration and Conversion Best Practices:

Driving the Eye to Your Goal

Term Considerations

Term Considerations

The 3 Offer Drivers◦Commitment -- Free Trial vs. Risk-Free

◦Price Point ($4.99, $9.99, $14.99, $19.99, etc.)

◦Term Options Push for highest possible Price expression as monthly Monthly billing? Multi-term options?

What Should You Test?

Commitment, Price and Term

A/B or Multivariate Testing of Landing Pages

◦ Copy (Headlines, length)

◦ Design Elements

What Should You Test?

A/B or multivariate testing on landing pages

Price testing for subscription offers

0% 20% 40% 60% 80% 100%

26%

43%

74%

57%

% Conducted Test % Not Used

Source: SubscriptionSiteInsider.com Observational Study of paid subscription content sites conducted June-September 2009. Study n=550.

Tests Used by Subscription Sites to Maximize Profits

Recency Drives Response◦ The sooner a name is promoted after an action, the better◦ Buyers > Hotlines > Responders > Openers > Non-Openers

Use an Email Service Provider (ESP)◦ Inhouse implementation -> delivery problems

Special Time-Based Offers◦ Effort 1 => 0.7%, Effort 2 => 1.6%◦ First customer service, second new offer w/ TCO

Email Conversion to Paid

Retaining Trials

Goal = an immediate, positive experience Lead the new customer to value Plan engagement infrastructure

Autorenew = 2x the conver$ion revenue Ensure proper fulfillment practices in advance

◦ Expired Cards

◦ VISA/MC Updater Programs

◦ Etc.

Retention – Automatic Renewals

Conceptualizing Retention

Months after credit card is provided

# of starts still active

0 12

100 people Simple Retention rate

Equivalent Retention Rate

50 people

Social Media: What Role?

15% 30% 45% 60% 75%0%

5%

10%

15%

20%

25%

30%

Email discussiongroups

(Unsure 24%)

Twitter(Unsure 49%) LinkedIn

(Unsure 31%)

MySpace (Unsure 29%)

Facebook(Unsure 25%)

Company - sponsoredonline

community(Unsure 7%)

% Responding Somewhat or Very Time Consuming

% R

espo

ndin

g Ve

ry E

ffecti

ve

Sphere Volume = Usage

Source: SIPF, MarketingSherpa and Baird Direct, May 2009Methodology: Survey fielded to SIPF members. N = 311

Icon from SmashingMagazine.com

1. Triggered Emails.2. Editor’s Picks.3. Member Ratings.4. Personal Profiles.

Engagement Infrastructure

Build marketing technology proactively ◦ Barrier - Payment Terms – Creative – Offer – Tracking – Database

Gather newsletter addresses 1 year before launch Plan proactively for resource needs (SEO/SEM/DB/etc.) Know the staff skill sets for success

Identify Marketing Needs Well in Advance

Thank You!

Bill Baird@asap@bairdmarketing.com

(203) 912-8958

BairdDirectMarketing, Inc.

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