The Right Business Model Helps Magazines Harness Industry Trends

AccuList’s business periodical clients will face challenges and opportunities in the fast-moving currents of publishing in 2020. The good news for printed magazines: Print is not only viable but thriving in many cases, with 64% of printing industry members telling Quocirca’s Global Print 2025 study that print will remain important well into 2025. At the same time, surveys show that digital subscriptions, advertising and content are increasingly necessary drivers of the bottom line.

Publishers Invest More in Digital and Content Marketing

In fact, worldwide news publishers surveyed now say digital publishing subscriptions are their top revenue stream. Given mobile and social audience trends, publishers also say they are increasing efforts to recreate quick-loading content for any device and are using more digital content, including videos and podcasts, to drive audience development–and that includes distribution via social media networks. At the start of the year, a What’s New in Publishing post by magazine consultant Mary Hogarth suggested that the best way to navigate the challenges of digital expansion, content innovation and multi-channel audience-building is to develop a solid business model. Periodicals need a model that will  keep cash flow strong to fund reinvention, she notes, citing cash drivers such as subscription sales, pre-paid ads and advertising space series, timely payment systems and expenditure discipline. However, it’s even more important for a magazine model to focus on expanding revenue streams across print and digital channels. 

A Smart Business Model Will Expand Revenue Streams

Of course, these revenue growth efforts are where AccuList’s targeted lists and direct marketing services can be of greatest use in adding subscribers, advertisers, members or event attendees. Among Hogarth’s suggestions for boosting revenue streams:

  • Brand extensions, such as digital editions, sister publications, books, events, conferences, courses and festivals;
  • Advertising sales strategy innovations, for example selling online plus print advertising as one package;
  • Expanding sponsorships/promotions and services by facilitating strategic partnerships or third-party sponsorship of in-house events, plus selling design and content packaging services;
  • Increased copy sales via digital/print magazines on newsstands, subscription growth, in-house back issue sales, and direct sales to partners/advertisers if appropriate;
  • Memberships schemes that can help cash-flow and likely increase audience reach and reader loyalty;
  • Online content/paywalls, such as using a micro-payment system to sell additional content;
  • Product licensing, such as selling the rights to content to be re-purposed in an existing title, or licensing the brand in terms of merchandising.

See the complete article on magazine business models for more detail.

 

New Survey: Online Marketing Pumps Offline B2B Sales

AccuList’s many business-to-business marketers—including business/industrial supply catalogs, business periodicals, trade shows, and recognition/incentive products—should be investing in a 2019 omnichannel marketing plan to maximize the online impact on offline buying, at least according to the latest research from Boston Consulting Group and Google. An optimal, best-practices mix of digital engagement channels—such as search, display, video, social media, e-mail and websites—with traditional print catalogs/mail, sales calls and brick-and-mortar stores can increase the marketing contribution to sales by 3% to 8%, BCG has found.

Decision-Making Starts Online, Even for Offline Buys

On average, two-thirds of B2B buyers of industrial machinery, industrial supplies, and packing and shipping products and services indicated in a new BCG survey that their purchase decisions had been significantly influenced by digital, even though the majority of buying journeys end with an offline purchase. The survey revealed that some 58% of industrial-machinery purchases were significantly influenced by online activity, even though 100% of the purchases were made offline. For industrial supplies, 88% of buyers performed some form of online research prior to purchase, while 69% then purchased online and 31% purchased offline. Packing and shipping buyers were more evenly divided in online-offline buying preferences, with 54% digitally influenced, 42% purchasing online and 58% buying offline. But it is the differences underneath the online influence data that reveal the opportunities for boosting sales. For example, spending to boost online branding ads/engagement can pay off when 75% of online industrial machinery researchers said that they consider two or more brands at the start of their buying journeys, compared with 55% of those who engage in offline research only. At the same time, 58% of industrial-machinery buyers said that they begin their online search with a product, rather than a brand, in mind. For these researchers, the manufacturers’ websites become primary points of influence.

Nurtured Online Researchers Make More Follow-up Purchases

One of the more encouraging findings in the BCG study was that online business researchers make more follow-up purchases, especially if there is engagement post-sale. When manufacturers of industrial machinery engage their customers digitally after an initial sale, those customers are three times as likely to research supplementary products, twice as likely to purchase them, and three times as likely to repurchase the product. Buyers of industrial supplies engaged digitally post-sale are eight times as likely to purchase a supplementary product of the same brand and twice as likely to repurchase the same product. Effective after-sales digital marketing activities include promoting online account sign-ups, encouraging app downloads, maintaining regular contact through e-mail or “nurture” communications, and ensuring a positive overall customer experience with the product or service.

Measurement Is Key for an Optimal Online-Offline Mix

For the best marketing return on investment, B2B marketers need to measure impacts and influences across the entire buying journey to connect digital marketing expenditures and tactics to offline sales. BCG found that measurement innovators use a variety of techniques—such as customer research, marketing-mix modeling, multi-touch attribution modeling, matched-market testing, and direct match-back approaches. For example, multi-touch attribution (MTA) is a modeling approach that attributes sales to the marketing activities that contributed most directly to revenues, using predictive models and artificial intelligence to derive statistics-driven attribution weights.  Direct match-back uses unique identifiers to tie a sale directly to the marketing activities that generated it at the individual or transaction level. Unique identifiers include credit card information, mobile tracking, in-store beacons, cookies, e-mail addresses or phone numbers.

Read more of the BCG study for survey details and success examples. And ask the AccuList team how we can help via our range of digital marketing services and Digital2Direct program, which combines targeted direct mail with social media ads or e-mail.

Making the Case for Direct Mail Power in Multi-channel Marketing

As our multi-channel marketing clients polish their 2018 marketing plans, it’s a good time to remind them of the continued value of direct mail in this digital era. A recent infographic from direct marketing agency US Presort puts together data from The Data & Marketing Association (DMA), Social Media Examiner, Epsilon, Experian and Marketing Sherpa to make the case for a direct mail commitment.

Why Connect Digital & Direct Mail?

The majority of marketers (71%) say they believe in an integrated multi-channel approach. After all, a smart multi-channel strategy can combine the pervasive impact of digital (96% of consumers say they were influenced online in making a purchase decision) with the effectiveness of direct mail (digital can’t beat mail’s 80% open rate or its consumer trust rating  of 76% compared with 61% for Google search, 43% for social and 39% for online ads). And marketers who combine direct mail and e-mail in a single integrated campaign report better results than when running standalone efforts, with overall response increasing by 35% or more. So why are so few marketers (just 29%) actually implementing those integrated multi-channel campaigns?

Addressing Direct Mail Myths

Lingering misconceptions may cause some marketers to hesitate over integrating direct mail with digital. As the infographic points out, direct mail has a high perceived cost. Yet while direct mail costs more to produce and distribute, its response rates are also much higher than other channels, so its ROI remains competitive. For example, per the DMA’s 2016 data, direct mail response rates averaged 5.3% for house lists and 2.9% for prospect lists, compared with online display ads at 0.9%, e-mail at 0.6% for house files and 0.3% for prospects, social media with 0.6%, and paid search at 0.5%. As a result, median ROI for direct mail, while behind e-mail, is on par with social media at 29% and 30%, respectively, and ahead of other digital channels such as mobile, search and online ads. Others assume difficulties in connecting and tracking combined paper and digital promotions. But technology and U.S. Postal Service discounts are making direct mail easier and cheaper to integrate with digital via mobile device-scanned coupon links, QR codes, PURLs (Personalized URLs), and landing pages. Plus, direct mail is now much easier to track in real time thanks to the U.S. Postal Service Intelligent Mail Barcode that lets marketers follow every single piece from the postal DSCF unit to the prospect’s door.

Making Direct Mail Part of a Multi-channel Solution

Successfully leveraging the power of direct mail in a multi-channel strategy requires a few key steps. As suggested in the infographic, include the USPS Intelligent Mail Barcode on all mail to track delivery and coordinate with other channels, and then gather measurable response from multiple channels via tactics such as reply cards, 800-number call tracking, as well as mobile-scanned QR codes and PURLs. Create campaign-specific landing pages and make sure they are mobile-friendly. Integrate e-mail and direct mail messaging and lists, and coordinate e-mail blasts with mail delivery; plus create Facebook ad campaigns to target the same audience as your direct mail lists (see our Digital2Direct programs). Finally, consider IP Direct Mail or Web Direct Mail to target the same mail audience on Google with coordinated ad banners.

To share the full infographic, go to https://www.uspresort.com/posts/direct-mail-how-to-succeed-in-digital-era

 

 

Use Key Direct Marketing KPIs to Gird 2018 Plans

The busy year-end holiday season, especially for fundraisers and retailers, should not distract direct marketers from the working on the analytics they need to finalize next year’s marketing plans and ROI. A recent post by the Digital Dog Direct agency helpfully offers a checklist of basic marketing Key Performance Indicators (KPIs).

Spending and Lead Generation

Marketing ROI is about effective spending and requires tracking results by channel and campaign. KPIs use actual annual outlay for direct mail marketing (lists, print, lettershop, creative, postage), digital marketing (e-mail, SEO/SEM, landing pages, social media and creative), as well as spending on PR/events/brand/content marketing.  Marketers must keep a tally of the number of outbound leads attributed to direct mail or e-mail campaigns, as well as the inbound leads generated by efforts such as SEO, blog content or PR. Then a cost per lead acquired can be calculated by dividing annual expenditure by the number of leads generated. Since the ultimate goal is sales not merely leads, the percentage of leads that become paying customers and the dollar sales per lead are key measures.

Multi-channel Performance Rates

Beyond evaluating general performance, marketing planners should use measurement to fine-tune future marketing plans and budgets. This means identifying the response rates and conversion rates for each channel, for each direct mail and digital campaign, and for tests of creative, timing, frequency, lists and segments. Performance rates should be measured not only for campaigns to acquire new leads/customers but also targeting of existing customers and reactivation of dormant customers. Website traffic reports from Google Analytics can not only show online ad and SEM effectiveness but also track spikes around direct mail or e-mail promotions to give a fuller picture of response. A simple ratio of the annual return on marketing investment, or ROI by channel and campaign, can be calculated by adding up incremental sales from marketing and subtracting marketing amount spent, and then dividing the result by amount spent on marketing.

Long-term Growth of High-Value Customers

But remember that a focus on annual or campaign results can be myopic since these do not necessarily deliver long-term growth–for example if attrition is high so more customers are lost than added. Marketers need to look at customer and prospect databases to make sure they are growing year-over-year. Because acquiring a single sale per lead also is less profitable long-term than acquiring a repeat customer, measuring average customer lifetime value is a vital KPI and is calculated by multiplying average dollar sale per customer by the average number of purchases per year and the average retention time in years.

See the full article for the KPI checklist.

 

Nonprofits’ Crucial Year-End Fundraising Drives Have Begun

AccuList USA works with big and small nonprofits on their key year-end fundraising campaigns. With a third of annual giving occurring in December, over half of nonprofits starting year-end plans in October, and direct mail the leading fundraising channel, October often sees final tweaks to direct marketing plans (and mailing lists).

Planning for Year-End Fundraising Success

For example, nonprofit marketers may want to check their current plans against the four-step master plan recently offered by fundraising consultant Gail Perry on her blog. Step 1: Set goals for each donor segment, and don’t forget lucrative leading-donor annual gifts, lapsed donors and board members. Step 2: Select channels for a multi-pronged appeal, integrating direct mail, e-mail, telemarketing, social media, website, and video creative–and design a consistent message for all. Step 3: Gather resources and set a budget. Step 4: Set a timeline and calendar. Read the complete article by Perry for details and tips.

How Small Nonprofits Can Punch Above Their Weight

Of course, smaller fundraisers often bemoan budget limitations at this point. A guest post by Damian O’Broin for the Institute of Fundraising offers a bracing response. Greatness is not a function of size, it’s a function of attitude, he argues, citing donor surveys. The things that matter most to donors don’t depend on big budgets and lots of staff but on good, donor-centric fundraising practices: thanking promptly and properly; showing progress and impact; getting to know supporters and responding to their needs; empowering supporters; and asking consistently. “Because what we found from these surveys is that the best way to improve donor commitment is with great donor service. Responding to e-mails. Dealing effectively with queries when your donors call you. Thanking donors promptly–and just as importantly–making donors feel thanked,” he says. Even modest direct marketing campaigns, assuming they are well targeted, can use these practices to boost response.