Welcome in the Relationship Economy

Matthijs van de Peppel Director Marketing, Data & Service NRC Media The 7.5 M households 2.7 M circulation

NRC 1828 │ 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