Steven Hutton Head of New Revenue Streams , NZ INMA World Congress of News Media, May 2019, New York WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE RESULTS TAKEAWAYS

THE STORY OF STUFF

We are an ecosystem of digital and print brands that reaches and engages the entire nation.

● 3.4m New Zealanders monthly ● $301m in annualised revenue ● EBITDA $39m DIGITAL PUBLISHING

PRINT PUBLISHING

Reaching over 2.1 million* is NZ’s 2rd largest New Zealanders every month, social media site, with 725,000** Stuff is the # site in NZ. members. WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE APPLICATION TAKEAWAYS

LEVERAGE OUR AUDIENCE

Build businesses that grow direct to consumer revenues.

DIGITAL PUBLISHING

PRINT DIGITAL PUBLISHING PUBLISHING PRINT VENTURES PUBLISHING WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE APPLICATION TAKEAWAYS

BUILD, BUY AND COLLABORATE

Diversifying our portfolio to cater for our audience’s wider needs.

OWNED + JOINT VENTURES + PARTNERSHIPS

DIVERSIFIED VENTURES WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE APPLICATION TAKEAWAYS

WE INCREASED ARPU WITH RECURRING REVENUE

A more profitable relationship with our audience.

Create premium products and new businesses Recur $65 - $200

Provide opportunities to transact Transactions $7 - $110

Convert and engage Authenticated Audience $2.10

Attract Mass Audience audiences $0.86 WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE RESULTS TAKEAWAYS

THERE WAS STILL A BIG PROBLEM

Declining revenues from the biggest part of our business.

WE WERE FOCUSSING ON THE WRONG THINGS

DIVIDING NORMALISING RECREATING IGNORING THE SHORT-TERM OUR FOCUS DECLINE THE SOLUTION EXPERIENCE SALES

Created an inefficient Managing the Print Over 1000 digital Limited product High percentage of model with a Decline had become the products that basically performance coupled singular traffic disportionate high % of norm and with digital did the same thing. with lengthy post sale product sales were time spent on chasing growth slowing over the We were addicted to admin process and the norm resulting in low value digital $. last 12 months, the selling new products inadequate reporting low average order future looked bleak. rather than effective made for an often values. products. average customer experience WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE RESULTS TAKEAWAYS

SO, WE NEEDED A NEW GAME PLAN

Systemised approach to compete and win.

STEP 1 STEP 2 STEP 3 STEP 4

Source Quality Lead Secure Appointment Pursue & Win Activate & Manage

Team members Outsourced Service Lead Specialist Digital Acquisition Digital Campaign Manager involved Specialists (DAS) ● Source Leads from both ● Call & Qualify the leads ● Campaign Activation ● Thorough Needs Analysis online & traditional ● Use market data to trigger ● Ongoing Optimization ● Research Market & Tools, sources interest ● Campaign updates to DAS competitor insights Templates ● Market Analysis to source ● Book Appointments to & Clients ● Pitch Relevant Solutions & Reports high propensity leads relevant DAS ● Alert DAS for potential ● Handle Objections ● Competitor media ● Use market research to opportunities & Risks ● Set right campaign ● Lead database create interest ● Campaign performance expectations ● EDM Campaigns ● Build a database for future report opportunities WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE RESULTS TAKEAWAYS

THE GAME CHANGER WAS SOLVING MORE THAN TRAFFIC PROBLEMS

Systemised approach & redesigned product suite that focussed on and solved different customer objectives.

● Systemised Prospect ● Change our customer ● Speak knowledgeably generation from 20 approach in a way that about the different ways to manual prospects per day starts a conversation around measure and refine to 100 per minute with a objectives and sets realistic outcomes and tools high propensity to buy expectations available to use

● Increased new business ● Propose products ● Become THE trusted appts per week for ave of 3 designed to meet specific advisors and consultants to 15 needs and showcase these for digital marketing activity using simple, everyday (creating opportunity to language & animated extend services) visuals

A NEW APPROACH TO CUSTOMER ACQUISITION WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE RESULTS TAKEAWAYS

WE USED DATA AND ANALYTICS

To provide a laser focus for significantly higher conversion ratios .

Score Max Metric Value Credit Score point Score

Last advertised date 21-Dec-17 2 5 10 25

Total annual spend 1500 GBP 2 10 20 50

Digital presence Conditional Yes 5 10 50 50

Organic traffic 3200 3 5 15 25

Paid traffic 900 2 10 20 50

Traffic cost 4000 3 10 30 50

Ads (display + text) 122 5 10 50 50

Publishers 80 4 5 20 25

Total Score 215 325 WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE RESULTS TAKEAWAYS

SO, WE CREATED AN ENTIRE SALES FUNNEL SOLUTION

Design a new digital solutions that customers actually need rather than NEW DIGITAL SOLUTIONS — TOTAL SALES FUNNEL OUTCOMES products based on print mass impression reach format.

A “Soup to Nuts” Stranger to Promoter Solution in 3 easy steps: Strangers Step 1: Strangers to Prospects = Strangers to Prospects Local Deals Carousel Prospects Eg Native cost per click

Step 2: Prospects to Customers = Strangers to Customers: Popshop Customers Eg Popshop

Step 3: Customers to Promoters = Neighbourly Promoters Customers to Promoters: Eg Neighbourly Sponsored Post Sponsored Posts WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE RESULTS TAKEAWAYS

STEP 1 - STRANGERS TO PROSPECTS

We turned our audience into actionable prospects with low -risk but highly effective digital CPC products:

✓ Mobile only ✓ Native display ads ✓ Cost per click ✓ Highly visual non-intrusive ads ✓ High click through rate ✓ Inform, educate and drive traffic

SALES PRESENTATION SLIDE EXPLAINING THE PRODUCT WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE RESULTS TAKEAWAYS

STEP 2 - PROSPECTS TO CUSTOMERS

We created a cost effective e-commerce platform to engage and sell direct to new customers:

✓ Popshop is an e-commerce website built and managed by Stuff ✓ Easy and cost effective for the advertisers to launch their products online. ✓ Efficient way to market test a product ✓ Start selling online immediately, without any significant investment in an ecommerce website and SALES PRESENTATION SLIDE EXPLAINING THE PRODUCT driving traffic. WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE RESULTS TAKEAWAYS

STEP 3 - CUSTOMERS TO PROMOTERS

We used our hyperlocal social platform to let our customers spread the good word.

✓ Find and connect with local businesses ✓ Engage with neighbours ✓ Seek and share advice ✓ Buy, sell, trade and give away items ✓ Get local, community news updates ✓ Create local events ✓ Interact with interest groups and organisations.

SALES PRESENTATION SLIDE EXPLAINING THE PRODUCT WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE RESULTS TAKEAWAYS

A MASSIVE CHANGE IN ONLY 3 MONTHS

+317 $1M+ 220 18-40 % !

NEW NEW ORDER TOTAL UNPRECEDENTED REVENUE CUSTOMERS VALUE SALES GROWTH

Total New Revenue over Secured 220 new digital Average order value An increase in For the first time in Stuff’s $1.05 Million NZD customers from the increased from Digital % of total sales history, this new digital with a 65% profit margin Auckland market. $1,200 to $5,000 (print and digital) revenue offset Auckland’s Aug - Nov 2018 (+317% increase) 18% to 40% print decline to deliver year on year growth. WHO WE ARE THE APPROACH THE PROBLEM THE METHOD THE RESULTS TAKEAWAYS

Key Takeaways

A specialised digital Own the funnel rather than sales focus covering part of it. Design digital Needs Analysis, Pitch products that solve more than and Close is far more “stranger to visitor” traffic effective than a problems. Plus customers love combined print and this approach as very few have digital sales approach. anything close to a functioning sales funnel.

Don’t try to be great at Opportunity cost is real everything. Outsourced Right people focussed on right prospect data and things can turn downhill Insights provide laser decline into road paved with focus and significantly new Revenue higher conversion ratios Delighted Clients

“Being our first significant campaign with Stuff, I was "The Stuff sales funnel solutions is one of the best highly impressed by the pro-active quality service marketing decisions we have made. Previously we that you and you team provided, from campaign had been doing Facebook etc and with Stuff's total consulting, placement strategy through to excellent solution, from the results, we now consider support with digital productions and fast turnaround. ourselves long term sales funnel partners." The Stuff Digital Sales Funnel solution has certainly helped our brand to connect and grow their target Satyan Prasaad, Director audience – evidenced by great customer feedback, Enterprise Motor Group NZ sales and measured online conversions. The use of Stuff digital media is one of the best marketing channels Phase3 have engaged.”

Brett Killip, Director Phase3 Strategic Creative Ltd