After viewing a few internet marketing videos from Stompernet.com
(https://stompernet.infusionsoft.com/go/F5BD/newsds/), I wondered if any of the ideas could be applied to the newspaper business. Extra cash through better marketing might be the answer to outsourcing the repetitive tasks to free you to do the more creative, long-term work. I’m not a newspaper publisher (I don’t even play one on TV or the web), and I am sure it’s more complicated than this, but I think you’ll get the idea.
I’d sure like to understand why this wouldn’t work.
Let’s say you are a 5,000 paid-circulation weekly newspaper. Let’s also assume you want to keep your print version alive, and for this discussion, we’ll leave out rack sales, as well as fixed and operating costs and the like — numbers that would vary widely anyway. Your current paid subscription rate is $20 per year for a gross of $100,000 per year.
Now remember the key to surviving, if not thriving, in today’s market is to KEEP YOU CURRENT SUBSCRIBERS. Gaining new subscribers can still be done, but that’s an extra expense with less potential than better serving your current loyal customers. You already know they are paying customers. Make it hard for them to quit.
If you increased your subscription rate by a mere 5 percent, that would mean an increase of a buck for your readers, but $5,000 to you, with no increase in costs beyond your marketing materials to sell the increase to your subscribers. Think you could outsource a few of those weekly mundane activities you are bogged down in with a little extra cash, leaving you time to focus on growing your circulation?
But wait, there’s more — as they say on those TV ads.
Let’s say you increase your subscription rate by $3, still a small amount over the course of a year for your readers. Some of you are probably already sweating over the thought of raising your subscription costs by 15 percent. Why, it’s madness, you may be thinking.
But that’s $15,000 extra gross revenue, so it’s worth kicking around. Let’s do a little more math. Let’s say that a few of your readers get ticked off and cancel. How many readers would you have to lose to break even, to be back at your starting point of $100,000 in revenue?
A hundred? Three hundred? How about losing 650, or 13 percent of your subscribers and be no worse off than before you raised the price! (Actually you could lose 652 subscriptions, but let’s round it off.) One could argue that many of those were likely about to quit the paper anyway through churn, but that’s not the point.
Do you honestly think that you would lose 13 percent of your subscribers over $3, the cost of one tall (small) latte at Starbucks per year? (Which, come to think of it, might be a good marketing line….)
The key is to spend some effort in showing the TOTAL VALUE of subscribing to your paper in your marketing materials. There are a few ways you can do this, and much of this you probably have already thought of. So consider these reminders.
1. Would you be willing to spend $23 to get a GUARANTEED return of $52? All a reader would have to do is save a buck a week on average from using the coupons and sales information in your paper. You could point out how easy that is to do and that after a few months for the average reader, the paper is FREE for the rest of the year. You can’t beat free. BUT YOU MUST point that out in your marketing messages. Don’t make your readers do the math for you. One free 2-for-1 coupon for a box of cereal alone could be worth more than $2! You should also point how your paper also can save readers TIME, which translates to money in their world, too.
2. Point out ways you are better than your competition — better local content, more names and faces, guaranteed satisfaction or their money back (all of it!), superior customer support, and so on. The idea is to show the VALUE of a subscription, the UNIQUE content or access to content that you provide, in such a way that saying no would obviously be a bad decision.
3. Then, be sure to give them that little bit extra. Give subscribers ADDED value by tossing in some extras, such as having a mailing list that sends out shopping tips or coupons and specials a day early, so they can beat non-subscribers to the deals. You could build a campaign to sell this idea to local businesses, too, which may very well interest them greatly. You could use the scarcity tactic here on your subscribers, by saying the list will be limited and you better hurry to get your spot in the group. ACT NOW! LIMITED AVAILABILITY! These are attention getters.
Use an autoresponder program tied to your web site to send out constant e-mails with links to free items, sales, coupons, interesting news, breaking news (here is where you could use Twitter) and more. This is that EXTRA VALUE I talked about. I use AWeber. It is pretty cheap, and I am quite happy with it.
You can easily create free forums for special interest groups, like young mothers, frugal folks, home gardeners,etc. Don’t overlook goodies you can make available to the subscribers portion of your web site, which I think should be cordoned off from the free part of your site. Despite some research to the contrary, I think you need to make at least part of your web site available only to subscribers. Again, you just have to make your total offer too good to pass up. People are used to paying for cable content, aren’t they?
Speaking of Twitter, it’s hot right now, and your young target market is all over it. It takes almost no time to use and learn and you can provide another (FREE!) service for your readers. More value!
You are really going to have to get your ad staff and your editorial staff working in harmony to get optimum return — and I know that dropping the ever-thinner veil between advertising and editorial is a scary thought to many. But it’s time to modify the old ways of thinking. If the ad staff had an idea of what special packages you were presenting in the coming weeks or months, perhaps they could more easily sell ad space. Think SYNERGY. You can do that and keep the newsroom “clean,” too.
Check out this article for more: tinyurl.com/cxa85v
One more thing the web site can add besides community is more content, which you can get for free from what are called Private Label Rights and Master Reseller Rights web sites. You could use this content in your print product or on your web site and you could even sell some of the content as e-books to your subscribers for a small fee (or give them away as bonuses for renewals) and create more interest in your site and a little more revenue. It’s really quite easy. An intern or part-time high schooler could process the content for very little expense. (Did I say the content would be FREE?) (CORREX: You may have to pay a small fee for someone to do the gathering for you, but it is worth it!)
All this also adds value for your subscribers. A few weeks into your new marketing campaign you may even see MORE new subscribers at that higher price than you lose, because of the value you have added at little or no cost.
BOTTOM LINE: Add value. Redesign for busy readers. Add easy content. Market your uniqueness and value. Bump the cost a bit to increase net revenue to cover minimal extra costs. Hit your recent unsubscribers hard with marketing materials/phone calls. Sell, sell, sell. Be the best. Be indispensable.