How much is a subscriber worth?

Justifying an adequate promotion budget is often a circulator’s most difficult job. This task can be made easier if you can document to your publisher the value of each new subscriber. Figuring out how much circulation and advertising revenue each subscriber supports is a straight forward calculation. Divide the publication’s total revenue by the number of subscribers. But don’t stop there. The real value of each subscriber is the total revenue supported over the expected life of the subscription. That is why retention rates are so important. A publication with an annual retention rate of 80% can afford to spend twice as much on new subscriber acquisition as a publication with a retention rate of 50% because the expected life of a subscription is twice as long. As always, the rich get richer. Publications that engender strong reader loyalty need fewer new subscribers to grow and they can afford to spend more attracting new subscribers.

Clone your existing subscribers

The process of developing circulation can be likened to cloning. If you want more subscribers you have to find a way to replicate the subscribers you have. The people who will want to read your publication are exactly like your existing readers. Thus, the more you know about your current readers the easier it will be to locate their clones. Do you know why your readers find your publication so important? If so, you should be able to convert this knowledge into effective promotion messages. If not, you need to find out. Not every publication can afford a large-scale market research program, but even the smallest publication can create a reader feedback program that provides editors and circulators with valuable information. Don’t spend a lot of time and money looking for new subscribers until you thoroughly understand the readers you have.

Play to your strengths

Since we live in the Garden State where tourism is important, many New Jersey publications experience large seasonal fluctuations in their distribution patterns. Don’t succumb to the temptation to cut back on promotions during the periods in which your publication experiences its “natural high.” In a local economy that receives a big boost from tourism, seasonal visitors can be as important to advertisers as year-round residents. Finding new readers is often easier at a time when your publication functions clearly as an indispensable guide to your local market. Do yourself and your advertisers a big favor. Keep up the circulation sales effort through the year.

Just do it!

Is there a magic formula for building circulation? No. As the scientists like to say, there are no certainties—only probabilities. This much we do know: Publications that promote themselves consistently have a far higher probability of attracting new subscribers than publications that don’t. The only promotion that is totally ineffective is the promotion that is never launched. Use the subscriber value concept to lobby for as meaningful promotion budget, craft a sales message that will appeal to existing subscribers, promote during your publication’s peaks as well as its valleys, but above all else promote, promote, promote.

About the authors

Richard Haas is circulation development manager and Tanya Erickson is circulation services manager for AFL Web Printing. They work closely with AFL’s printing customers to strengthen the publications’ circulation efforts. Richard and Tanya enjoy talking with fellow circulators. If you would like to discuss circulation issues, give them a call at 856-566-1270 or send them an e-mail (rhaas@aflwebprinting.com, terickson@aflwebprinting.com)