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Bill Baird Presented to API Content Market Success

Subscription Marketing: A Comprehensive "How To" Overview

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Page 1: Subscription Marketing: A Comprehensive "How To" Overview

Bill Baird

Presented to API

Content MarketingSuccess Factors

Page 2: Subscription Marketing: A Comprehensive "How To" Overview

Content Marketing Trends Content Value Assessment Marketing Best Practices Infrastructure Planning

What’s in This For You

Page 3: Subscription Marketing: A Comprehensive "How To" Overview

$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

Page 4: Subscription Marketing: A Comprehensive "How To" Overview

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

Page 5: Subscription Marketing: A Comprehensive "How To" Overview

Producing Traffic: Where to Invest?Producing Traffic:

Where to Invest?

Page 6: Subscription Marketing: A Comprehensive "How To" Overview

Conversion Metrics

Page 8: Subscription Marketing: A Comprehensive "How To" Overview

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: Subscription Marketing: A Comprehensive "How To" Overview

Page

9

Paid Content

Free Content

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

Bait

Page 10: Subscription Marketing: A Comprehensive "How To" Overview

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

Page 11: Subscription Marketing: A Comprehensive "How To" Overview

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

Page 12: Subscription Marketing: A Comprehensive "How To" Overview

Term Considerations

Page 13: Subscription Marketing: A Comprehensive "How To" Overview

Term Considerations

Page 14: Subscription Marketing: A Comprehensive "How To" Overview

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?

Page 15: Subscription Marketing: A Comprehensive "How To" Overview

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

Page 16: Subscription Marketing: A Comprehensive "How To" Overview

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

Page 17: Subscription Marketing: A Comprehensive "How To" Overview

Retaining Trials

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

Page 18: Subscription Marketing: A Comprehensive "How To" Overview

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

◦ Expired Cards

◦ VISA/MC Updater Programs

◦ Etc.

Retention – Automatic Renewals

Page 19: Subscription Marketing: A Comprehensive "How To" Overview

Conceptualizing Retention

Months after credit card is provided

# of starts still active

0 12

100 people Simple Retention rate

Equivalent Retention Rate

50 people

Page 20: Subscription Marketing: A Comprehensive "How To" Overview

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

Page 21: Subscription Marketing: A Comprehensive "How To" Overview

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

Engagement Infrastructure

Page 22: Subscription Marketing: A Comprehensive "How To" Overview

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

Page 23: Subscription Marketing: A Comprehensive "How To" Overview

Thank You!

Bill Baird@[email protected]

(203) 912-8958

BairdDirectMarketing, Inc.