Q: Where are publishers leaving money on the table?
A: It’s the old saying, “there aren’t enough hours in the day”. Publishers are constantly picking their battles, and everyone is busy focusing on the magazine, the brand, the team and keeping everything moving. So, when the invoices come in, they’re often just signed off and paid without anyone having the time to stop and ask, “Is this really the best way of doing things?”
Sometimes, you need to step back from the day-to-day and look at the bigger picture, where the money is going, what’s actually delivering value and where there might be opportunities to improve profitability.
As print costs and postage continue to rise, this is a great place to start. Are you using the best printer and paper, for your business and your brand? With print numbers in decline, sometimes a simple switch can save you a pretty penny depending on your volumes and your requirements.
There are several companies out there who can consolidate your mailing or help sort your mailing prior to it reaching the likes of Royal Mail, thus saving money each time you mail your copies. Don’t just stay with a provider because that’s all you know, or you haven’t got the time; make time, it could be financially worth it.
Q: Are publishers too focused on audience numbers?
A: It’s good to measure your audience, but I wouldn’t get obsessed by it.
Having a large audience can be used to your advantage in some instances, and it does sound impressive, but it doesn’t tell you a lot about its commercial value.
I’d rather know how engaged the audience is, their loyalty, would they recommend you, and the lifetime value of your audience.
For example, 10,000 highly engaged readers who regularly subscribe, renew, attend events, read your newsletters, could be far more valuable than 100,000 followers with minimal interaction with your brand.
It’s important to understand the audiences and their values. Someone who has subscribed for the last five years has a totally different value to those who just clicked on a piece of your content.
I wouldn’t say stop measuring your audience, but I would say put those numbers into context and find out what your audience is worth.
Q: What makes an audience commercially valuable?
A: For me, it comes down to three things, engagement, loyalty and intent.
When readers move from consuming for free to putting their trust in you and parting with money. It could be subscribing, renewing, attending an event, buying a product; this tells you so much more.
Data is important here, and segmenting the data is even more important. Grouping your audience – checking your touchpoints, how do they behave at each point, what motivates them, what do they value – opens up opportunities.
Creating something that genuinely meets their needs today, with the flexibility and data to change your offer and also meet their needs tomorrow, allows you to monetise now and leverage the full benefit of LTV (lifetime value) going forward.
Q: What should publishers be measuring instead?
A: I’d like to see publishers moving away from volume and measuring value. Is the business profitable? Give yourself more reasons for producing the magazine, posting on socials and your website.
Take a deeper dive, what’s driving your revenue? Customer’s lifetime value, your retention rates, average revenue per customer?
Those ‘5 issues for £5’ promotions, are they really working? When do your customers drop off? Do they renew, what else do they buy, an event ticket, merchandise, back issue? How long do they stay and what did it cost you in the first place.
I would say a shift in mind-set from volume to value can make a significant difference to your decision-making. Sometimes, change is difficult, when you’ve always run those same promotions, and they are big volume drivers, but find out if they are really worth it in the end.
Q: What’s the biggest misconception about publishing profitability?
A: I would say, increasing your numbers means more profits.
It’s great when we grow, and a wonderful feeling, but it doesn’t automatically mean more money.
Looking at your profitability with a more holistic view, getting your prices right, reducing unnecessary costs, and reviewing your print and postage costs. Ensure each customer works for you in the best way.
For independent publishers, I feel this is really important. They don’t tend to have huge marketing budgets or resources, so those customers and what they purchase is important; therefore having your prices right will provide you with the best possible outcome.
It’s not always about building the biggest audience; it’s about building one with value.
Q: What’s in the pipeline from Warners Circulation Solutions?
A: Apart from ensuring our publishers are working in the most profitable way possible by developing the collection and use of data, Warners is also significantly growing it presence in the hobby events and shows arena and developing its e-commerce footprint – all while also moving to new offices!
About us
Warners Group Publications has been delivering an effective bespoke ‘Total Circulation’ service for over 35 years. We provide all services under one roof: newstrade distribution, subscription and membership management, digital marketing and print and recognise the importance and benefits of strategies that bring all of these channels together to maximise engagement, retention and profitability.
natalie.smith@warnersgroup.co.uk
07720 739 674
