dovetail conference january 2016 - jim bilton

Jim BiltonManaging Director

Wessenden Marketing & Brandlab Research

#dovetail2016

Graze: driven by automated technology

Automated Insight• Register initial preferences• Track purchasing patterns• Constant product reviews• Constant NPD testing• Focus groups• The Audience Within

Graze: driven by automated technology

Automated Insight• Register initial preferences• Track purchasing patterns• Constant product reviews• Constant NPD testing• Focus groups• The Audience Within

Automated Fulfilment• Robotic pick & pack• Personalised comms• Tracking delivery

Graze: driven by automated technology

Automated Insight• Register initial preferences• Track purchasing patterns• Constant product reviews• Constant NPD testing• Focus groups• The Audience Within

Automated Fulfilment• Robotic pick & pack• Personalised comms• Tracking delivery

Automated CS• Website self-serve area• Clear FAQ’s• Twitter & Facebook• Email only CS

Graze: flexing the modelRetail

Graze: flexing the modelRetail More direct options

• Wholesale• Sharing boxes• One-off gifts• One-off self purchase• New packages

Project methodology & background

The mag sub in context

YouGov Survey (2,000)

7 focus groupsDovetail SSS (145,000)

Publisher research

Reimagining the mag sub

The mag sub in context

Mapping the RRM world

Mapping current mag purchasing

Enhancing the mag subscription

The B2B dimension

The structure of the report

Mapping the RRM world

9%

80%

22%

46%

41%

Amazon Prime

Amazon ad hoc

Other RRMs

Media RRMs

Magazine Sub

Penetration of the RRM into Mags

Base: All magazine readers / buyers

Following the global RRM trends

• From front-end choice to in-service control

• From lock-in to satisfaction

• From subscription to membership

• Free as a pathway to paid

• Maximising the multiples

Magazine content platform

2%

7%

21%

70%

Digital Only

Digital First

Print First

Print Only

Magazine Content Platform

Base: All magazine readers / buyers

Magazine content platform

2%

7%

21%

70%

Digital Only

Digital First

Print First

Print Only

Magazine Content Platform

Base: All magazine readers / buyers

95

127

35

Magazine purchase channel

5%

17%

24%

54%

Do not buy magazines

Subs Only

Subs & Retail

Retail Only

Base: All magazine readers / buyers

Magazine purchase channel

5%

17%

24%

54%

Do not buy magazines

Subs Only

Subs & Retail

Retail Only

Base: All magazine readers / buyers

93

148

79

The magazine purchasing model

Magazine Consumption

Content Platform

Purchase ChannelRepertoire Flex

Magazine Addiction

Subscription Mentality

Magazine purchasing personas

Magazine purchasing personas

10

20

30

40

50

60

70

80

90

100

110

10 15 20 25 30 35 40

Mag Sub %

Age (% under 35)

Persona Magazine Spend

Print ZealotsPrint Conservatives

121

Print Flexers

Print Dabblers

Digital Radicals

Digital Enhancers

Digital Experimenters

102

11644 63

128

35

Older Younger

DTLab

The “Audience Within” • Granular insights• Practical outputs• DT Staff engagement• Culture change in DT

• 3 groups of 8 people• 19-24 x 2 / 34-55 x 1• Range of job roles• Preparatory homework

“Publishers may know what readers want

to see in the magazine,but do they really know how their subscribers want to be treated.”

General context of respondents

• Light magazine readership

• Usage of other subscriptions

• Three distinct life-stages

• Common pressures

• Overloading

The overload cycle: subscriptions & benefits

Frictionless cancellation

“Netflix never query a cancellation. And they hold on to all my data. I cancelled, then changed my mind three months later. They just started me straight up again – with all my usage history – as if I’d never been away. It was more of a holiday than a cancellation. Why can’t we be more like that with magazine subscriptions?”

Frictionless cancellation

• 23 different refund policies among DT clients.• Some very negative: conditions, written, slow refund.• Time hungry. • Sours any ongoing reader relationship.

“Netflix never query a cancellation. And they hold on to all my data. I cancelled, then changed my mind three months later. They just started me straight up again – with all my usage history – as if I’d never been away. It was more of a holiday than a cancellation. Why can’t we be more like that with magazine subscriptions?”

“It doesn’t seem fair that someone who has been reading a magazine for years should pay more than someone subscribing for the first time. Couldn’t we give them a little thank you gift

or a reward?”

Not rewarding loyalty at renewal

“When someone wants to cancel, I’d like to be able to

offer them another mag from another publisher which would

be more appropriate, like an Amazon recommendation – we handle such a range of titles at DT. I know that we’d never be allowed to do that. But that is

what Netflix would do, isn’t it?”

Cross publisher choice of titles

The 360 degree flip: other issues

• First issue delivery

• Free trials

• Digital editions & bundles

• Smaller & more regular payments

• Membership benefits

• Adequate stock levels

• Multiple comms channels

Specific services

Specific services

• Instantly understandable offer & service• Membership benefits: exclusive & related to core• Flex the service in-service• Avoid front-end “cons”• Personalisation is key

What if?......

+ + = ?

The magazine consumer’s purchase optionsContent Platform

Delivery Channel Commitment Information

Unit Payment

Print Retail Single Copy Issue Method

DigitalHome Delivery

PostRetail home delivery

OngoingOpen-endedFixed term

Article Frequency

Click & Collect(shop save)

Minimum Information

Unit

DigitalStream

Download

Flow of free (access-level) content

DTLabThe “Audience Within”Granular insights & practical outputs

Unpacking the magazine subscriptionGivens Enhancements Variables

Content quality Rewarding loyalty Title flexibility

Competitive pricing Payment options Membership

Easy cancellation Frictionless processes Gifting

Fast & faultless delivery Trial Content Atomisation

Fast problem resolution Added value

Control & personalisation

Subscription theatre

Content architecture

Ecommerce

Understanding the magazine now

• Understanding buying as deeply as reading

• Tracking readers’ changing digital activity

• Understanding the role of the magazine brand

• Mapping the multiples

• Preparing for the Digital Jump

Following the global RRM trends

• From front-end choice to in-service control

• From lock-in to satisfaction

• From subscription to membership

• Free as a pathway to paid

• Maximising the multiples

Optimising the existing assets

• Joining up the dotsPrint + digitalRetail + directReading + buying

• Moving from bolt-on to rebuild

• Maintaining quality in every dimension

• Owning the complete magazine experience

• Tailoring offers & models

Some practical suggestions

• Break down the internal silos

• Take everything apart & then reassemble it

• Develop a deeper understanding of the end user

• Segment and automate everything possible

• Rethink what “customer service” really means

• Build partnerships

• Watch Amazon and grocery retail

Managing Change in Publishing

42

PublishingFutures2016

Publishers managing changeCompany

Vision

Company Culture

Company Structure

Staff Headcount

Staff Skills

Financial Resources

IT Resources

Some questions relating to Dovetail

• What will your company look like in 2 years’ time?

• What do you want DT to look like in 2 years’ time?

• What kind of relationship do you want with DT?

• Are you prepared to invest in that relationship?

4 key challenges for the industry

Balancing Retro & Relic

The loyalty timebomb

The smartphone opportunity

Breaking through the noise

A final thought about the future

“There are no more silver bullets. There’s only shrapnel.”

“Amazon wouldn’t do

that!”