Ten steps to successful subs marketing

A subscription is a contract between the publisher and the reader for the direct supply of a magazine for a specified number of issues.

Subscriptions are usually offered for one year or longer. Readers are committed for the length of the subscription for which they pay in advance. Subscriptions improve publishers' cash flow, are an important source of revenue and can be profitable. They can be a key element in building a stable circulation base. The cost of acquiring new subscribers may be high but, provided publications continue to fulfil readers' information or leisure needs, many re-subscribe at a much lower cost.

The benefits of subscriptions:

Revenue
- improved cash flow;
- reliable source of income;
- reduced reliance on newstrade sales.
- Profit - will depend on
  - run-on cost per copy;
  - fulfilment charges;
  - postal costs;
  - marketing costs.
- Volume
  - guarantees a sale for the length of the subscription;
  - can alleviate seasonal fluctuations;
  - can provide a significant element of the total circulation.
- Reader / publisher relationship
  - provides convenient and reliable method of purchase;
  - gives publisher improved profile of readers and their requirements;
  - provides opportunity for ancillary sales and database marketing.
Which of these benefits are most important to you?

Your answer will determine your subscription strategy and marketing budget. Don't forget, building circulation for advertising purposes may require a different plan from that needed to achieve increased subscription profit.

The key to successful subscription marketing is detailed forecasting and careful monitoring of costs and response. As promotions can be costly, continuous testing is vital to achieve optimum results.

10 key points to bear in mind for subscription marketing:
1. Define your strategy and your budget.
2. Consider which sources are going to be most effective:
  - off-the-page advertisements;
  - bound-in cards;
  - inserts;
  - direct mail;
  - stampsheets (Publishers Clearing House, British Family Publishers);
  - internet / email;
  - exhibitions / events.
3. Calculate lifetime values and test:
  - offers;
  - prices;
  - lists / media;
  - creative treatments / formats;
  - response device and method;
  - ensure all offers are properly coded and can be monitored.
4. Consider and test your payment options:
  - credit / debit cards;
  - cheque;
  - direct debit;
  - bill me.
5. Offer a 'no quibble' / 'risk free' money back guarantee for unmailed copies - very few subscribers will take it up but it offers a feeling of comfort.
6. Provide good customer service and develop a relationship with your subscribers. Follow up orders with acknowledgements.
7. Early-bird renewals and other offers. Your newest customer is your hottest prospect. Plan your renewal strategy carefully as your renewal rates will be important in determining the success of your campaigns. You should consider:
  - file segmentation;
  - timing of letters;
  - number of letters;
  - offers;
  - creative approach;
  - response methods;
  - telemarketing.
8. Develop a good relationship with your fulfilment bureau or department. Ensure that you all understand and agree what services are to be provided and what promotions you are undertaking. Further information may be found in the PPA booklet 'Best Practice Guidelines for Subscription Bureaux'.
9. Be aware of the rules governing ABC and BPA audits.
10. Ensure you comply with current data protection legislation. PPA can provide further information.