User Group September 2014

Agenda

Dovetail Client Satisfaction Survey Overview

Topline performance

Strengths & weaknesses

Improvements & developments

Digital needs & support

Reviewing Dovetail from the bottom up

Subscription Marketing Update

Agenda

Agenda

Fieldwork = Jul + Aug 2014

43 responses from 34 companies (52% response).

Self-categorised company size:

6 Major

11 Medium

17 Small

Survey Sample

Agenda

Rate the overall performance of Dovetail

NOW and A YEAR AGO.

Overall Dovetail Performance

5.2 Now

5.5 Year Ago

Agenda Memory Trend in Performance

-0.5

-0.4

-0.3

-0.2

-0.1

0

0.1

0.2

0.3

0.4

Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14 Jul 14

Agenda Performance: 6 Mth Trend Rating

SurveyBetter than 6

months ago

Same as

months ago

Worse than 6

months ago

Net Better /

Worse

Jul 13 33% 39% 28% 5%

Jan 14 14% 33% 53% -39%

Jul 14 21% 45% 33% -12%

Trend in Overall Performance

Is the overall performance of Dovetail better/same/worse

than a year ago.

Agenda Strengths & Weaknesses

Strengths Weaknesses

Customer Service (7) IT (23)

Core fulfilment processes (7) Account Management (16)

Account Management (6) Reporting (10)

General culture (6) Lack of resource (5)

Lack of of QC on CS (5)

Key verbatim comments (with 5+ mentions)

Agenda Improvements & Developments

Recent Improvements Seen Future Improvements Wanted

New senior management team (6)Extra resource & different culture

in IT (19)

Account Management (6)Extra resource & training in

Account Management (11)

Key verbatim comments (with 5+ mentions)

Agenda

Dovetail not falling over

Underlying core processes working well.

New team getting into place (senior + ac management).

Signs of more structured approach to IT projects.

Core values still in place.....transparency + can-do.

But a frustrating period of marking time

New ac managers coming on-stream.

Promised IT improvements still to show.

Clear resource constraints.

Sense of weariness, frustration, “heard this before.”

Overview

Agenda Where is Dovetail going?

Accelerating into

the digital world

from a stable base?

Jogging along within

ongoing limits

& constraints?

What are Dovetail’s real capabilities, plans & priorities?

Agenda Dovetail from the bottom up

Customers

Customer Care

Clients

Account Management

Digital Support

Reporting

Data Entry

Production

Finance

Warehouse

IT Platform

Culture Values Resources

Agenda IT

General IT projects Warming up

4.9 / +0.1

Website development Cold

4.0 / -0.1

Positives New Head of Data. Some

isolated examples of

improvements - signs of a

more structured approach.

Negatives Expensive, long timescales,

lack of flexibility &

responsiveness. Lack of CMS

access.

Agenda IT

“The appointment of a Head of Data is a major step forward.”

“I haven’t got a negative word to say about any of the people

I’ve met at Dovetail – they’ve all been friendly, professional

and helpful – but their hands are tied by an unresponsive,

confusing, unintuitive system that is not fit for a 2014

company dealing with huge amounts of data.”

“Does any of our feedback get through to Dovetail? We seem

to come up with the same gripes each time, but the service is

simply not improving.”

Agenda The core processes

Data Entry Hot 6.4 / +0.2

Finance Hot 6.2 / +0.1

Production Hot 6.2 / +0.1

Warehouse Hot 6.0 / +0.2

Positives Do not feature in comments!

Negatives Very specific issues....e.g.

financial reporting, warehouse

stock control.

Agenda The core processes

“Dovetail’s core strength is just being able to do the

basics well......their ability to handle the day-to-day

management of large subscriber files.”

Agenda Reporting

Reporting on your own data

/ usefulness of tools

Cooling down

5.4 / -0.2

Reporting on Dovetail’s own

performance / KPIs

Cold

4.9 / no change

Positives Core tools themselves are

robust.

Negatives Lack of analysis &

interpretation of the data (web

analytics emerging as an area

in its own right). More detail

(and action!) on Dovetail KPIs.

Financial reporting.

Agenda Reporting

“Reporting on data isn’t hugely insightful. This is

more a presentation of the data rather than any

analysis into it - what are the implications for us and

what are our business options as a result?”

Agenda Digital Services

Information & support Hot

5.3 / +0.1

Positives User Groups greatly

appreciated....

Negatives ....but need to know so

much...where to start (and

end!)?

Agenda

What do you want to do?

Develop ecommerce.

Targeted & personalised comms with customers.

Improve customer journeys on brand websites.

Deepen customer insight.

How do you want Dovetail to help you?

Fast and cost-effective IT response to ad hoc requests.

Seamless integration with third parties.

More focus on ecommerce, bundles, etc.

Test & tweak faster and more cheaply.

Analysis of customer behaviours.

Digital needs & support

Agenda Customer Care

Mail Contact Hot

6.1 / +0.3

Phone contact Hot

5.9 / +0.2

Email contact Hot

5.7 / no change

Positives A key strength. Consistent.

Negatives Better at some channels (e.g.

mail) than others (e.g. email).

How well-briefed and QC’d are

more complex offers?

Agenda Customer Care

“The Customer Service team is a key Dovetail

strength. They remain reliable, particularly on the

phone.”

“The Customer Service teams have clearly not been

fully briefed on some of our offers. They are fine on

the basics, but when products are more complicated

than the norm, the quality control just does not seem

to be there.”

Agenda Account Management

Account Management

Efficiency Warm

5.2 / -0.2

Account Management

Quality Cooling down

5.1 / -0.3

Positives New faces.....capable &

enthusiastic.

Negatives Churn, knowledge, proactivity,

headcount.

Agenda Account Management

“The Account Management team has quickly

improved. The new people on our account have

made an excellent team.”

“We lost an excellent account manager and badly

miss their understanding of our business, their

support and their pushing forward of new ideas. We

are simply not getting the proactive attention and

push that we once had.”

Agenda Other Issues

Dovetail Value-for-Money Hot

6.1 / +0.1

User Groups For those who attend....

A positive value-add to the core service.

A distinctive part of how Dovetail operates.

Agenda Dovetail from the bottom up

Customers

Customer Care

Clients

Account Management

Digital Support

Reporting

Data Entry

Production

Finance

Warehouse

IT Platform

Culture Values Resources

The Digital Magazine Marketplace

Subs

Marketing

Update

Dovetail User Group

September 2014

Agenda Jan-Jun ABCs

Channel2009

H2

2010

H2

2011

H2

2012

H2

2013

H2

2014

H1

UK newstrade -9.1% -6.9% -8.5% -10.5% -11.5% -10.1%

Export newstrade -14.1% -5.7% -11.3% -15.8% -10.4% -19.0%

Total subscriptions -2.7% -3.5% -4.1% -5.8% -8.2% -5.2%

Other sales 6.2% -3.9% -2.7% -33.2% -26.8% -28.7%

TOTAL -8.0% -6.3% -7.7% -11.1% -11.1% -10.7%Source: Marketforce Analysis of ABC

CHANNEL VOLUMES

Year-on-Year % Change

Total decline slows (slightly)

Subs decline slows (markedly)

Export wobbly (NB USA)

Digital editions....301,000 units per issue / market share

rising from 1.1% to 1.5%.

Agenda What Enders say about magazines

Market dividing into two clear tiers of winners & losers More vulnerable markets Publisher drivers: editorial quality / differentiation / investment. Demographic drivers: younger / mass market / male. Digital competition.....the over-riding factor currently. Strength of launch activity. Supply chain issues Retail threats: supermarkets / wholesale cost base. A bigger commitment to subscriptions. Pricing: stronger products must be more aggressive.

Agenda What Enders say about digital in magazines

Tablets complementary while smartphones a threat. Digital editions a very niche channel.....“not working.” Websites have to be mobile-optimised. Ecommerce an illusory holy grail except for the few. Social video a real opportunity. Discovery an issue for both advertising & circulation revenues. Digital transformation not digital add-ons The Debrief / Good Housekeeping / Auto Trader

Agenda Digital promotions, payments & back-ends

IPC & Boku Text-to-Pay magazine subs IPC & One-Stop In-store promotions A glimpse of Kindle Unlimited All-You-Can-Eat model grows.

Agenda

Magzene digital promotion club

Service company & agent developments

iSUBSCRIBE whitelabels LetsSubscribe Aditus focuses on publisher subs acquisition A glimpse of Amazon’s Kindle Unlimited The All-You-Can-Read model grows in books More Amazon news... The battle with Hachette becomes more bitter & wide-ranging Q2 2014 loss : -£74m on rising (+23%) £11bn turnover Conde Nast USA uses Amazon’s cloud computing service Readly hits 150 titles in UK Starting to gain traction as it rolls into other countries Frontline & Seymour trying to become digital distributors Finding a role in the digital world

Agenda Products to watch

Company goes digital-only & Cosmo mobile-first CosmoBody (USA) subscription VOD service

Mobile-optimised apps Beano’s Dennis & Gnasher Prank Stickers (templated stickers) BBC Food Magazine (shopping list & social sharing) House & Garden Kitchen & Bathroom (interactive room views + video) Time Out on Amazon Fire phone (3D / gesture control / head tracking)

Mobile-optimised websites Yours (online shopping) The Independent’s i100 (user rankings shape layout of site) What Hi-Fi (user reviews & price comparisons) NME (video / social sharing / users shape feeds)

Digital editions • Virgin Holiday’s Unleashed Magazine (Future) • Radio Times