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NRC Media the Netherlands 7.5 M Households 2.7 M Newspaper Circulation

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NRC Media the Netherlands 7.5 M Households 2.7 M Newspaper Circulation 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 Margin in 2 years € 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% 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 90.000 0 growth 1 3 5 in 7 acquired 9 11 13 15 volume contract 17 19 in Influx 21 23 subscription 25 27 years 29 31 33 35 37 39 2014 2016 41 43 45 47 49 51 34.169 77.203 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.
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