Welcome in the Relationship Economy
Matthijs van de Peppel Director Marketing, Data & Service NRC Media The Netherlands 7.5 M households 2.7 M newspaper circulation
NRC 1828 │ Mediahuis 2015 NRC Handelsblad │nrc.next │ nrc.nl 0.26 M subscribers 20 M monthly page views 360 employees │ 14 marketing Readers/advertisers │ 81/19 From hunting for circulation to growing relationships
280.000 Core Relationships
275.000
270.000 -15.000 per year
265.000
260.000 +8.000 per year
255.000
250.000
245.000
240.000 2013 2014 2015 2016 2017 2018 Steps to success
1. MAKE DATA WORK FOR YOU
2. BUILD PROFITABLE RELATIONSHIPS
3. ADD EMPATHY TO THE DATA MIX Let business people lead the data teams
• Analysts get energy from the insight itself, not the improved results
• Decentralise to stay in touch with the business
• Find multi skilled analysts: Data Rambo’s Steps to success
1. MAKE DATA WORK FOR YOU
2. BUILD PROFITABLE RELATIONSHIPS
3. ADD EMPATHY TO THE DATA MIX Don’t break up over money Understand the impact of price
• One size doesn’t fit all
o Pricing too high causes churn o Pricing too low leaves money on the table Increase prices with minimal strain
price elasticity per product
Can bear some burden +1% increase causes 0,16% churn -0,16 NRCProduct Handelsblad A Zesdaags
-0,22 NRCProduct Handelsblad B do-za
-0,65 Nrc.nextProduct zaterdag C + nrc.next Digitaal
Vulnerable -0,77 NRCProduct Handelsblad D web +1% increase causes 0,77% churn Find the optimal acquisition price
Prediction optimal acquisition price NRC saturday + digital 9.000 € 15.000
8.000
€ 10.000 7.000
6.000 years 2 in Margin € 5.000 5.000
4.000
€ 0 New New subscribers 3.000
2.000 -€ 5.000 Predicted 1.000 optimal price Current price - -€ 10.000 1,5 2,5 3,5 4,5 5,5 6,5 7,5 8,5 9,5 10,5 11,5 12,5 13,5 14,5 15,5 16,5 17,5 18,5 19,5 20,5 21,5 22,5 23,5 24,5 25,5 26,5 27,5 Monthly Price
New subscribers Margin in 2 years A/B test: the right acquisition price brings more readers and more money
New subscriptions +81% Margin in 2 years
+38%
+8%
-13%
Higher acquisition price Lower acquisition price Stop dating, get engaged Longer contracts build stronger relationships. Trials don’t.
Relationships 100% Retention of new subscriptions
Two year iPad contract
One year discount contract
47% 45% Retenion% Speeddates
5-week autostop trial 4%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Months after start No trials, only 1, 2 and 3 year discount contracts +126% growth in acquired contract volume
90.000 Influx in subscription years 77.203 80.000
70.000 2016 60.000
50.000
40.000
30.000 2014 34.169
20.000
10.000
0
1 3 5 7 9
45 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 47 49 51 Steps to success
1. MAKE DATA WORK FOR YOU
2. BUILD PROFITABLE RELATIONSHIPS
3. ADD EMPATHY TO THE DATA MIX
Sit down at the kitchen table Holiday breaks: from complaint to delight
• Complaints about € 10 fee • Terminated the fee My sincere compliments for the • Extended service: campaign, free customer-friendly service. Great how digital access, welcome back e-mail you handled my holiday break! Kees Kuijper • 10.000 extra breaks per year • This change costs money • But builds relationships Perfect holiday service. You even sent me an e-mail checking delivery. Great! Erik Rijpstra A small sign of recognition can be enough
You are our favourite subscriber! And we only met four months ago Lower churn in every tenure category
50%
45% 2014
40% Churn NRC
35% 2015
30%
25% 2016
Churn per year per Churn 20%
15%
10%
5%
0% 0-1 1-2 2-3 3-4 4-5 5-7 7-9 9-11 11-13 13-15 15-20 20-25 25-30 30-35 35-40 40-45 45+ years years years years years years years years years years years years years years years years years Active customer lifetime 48% decrease in stops
70.000 Stops NRC
61.964 60.000
50.000 2014
2014 40.000 2015
32.424 30.000 2016
20.000 2016
10.000
0 1 2 3 4 5 6 7 8 9 10111213141516171819202122232425262728293031323334353637383940414243444546474849505152 Shift from decline to growth
280.000 Core Relationships 275.000
270.000
265.000
260.000
255.000
250.000
245.000
240.000 2013 2014 2015 2016 2017 2018 Much more in our book
How to Succeed in the Relationship Economy Xavier van Leeuwe Matthijs van de Peppel Matt Lindsay
Available on Amazon.com Thanks!
Matthijs van de Peppel NRC Media Director Marketing, Data & Service
[email protected] +31 616 799 737