i-News: November 28, 2006

Data-Driven Marketing Automation for Media Professionals, 11/28/2006

> Are Multichannel Customers More Valuable?

By definition, multichannel customers are multi-buyers. Common sense suggests that multi-buyers are more profitable than solo-buyers.

“As any direct marketer will tell you, multi-buyers generally are much better customers than solo purchasers,” according to consultant Jim Wheaton. “They tend to be more loyal, with higher average order sizes, and – by extension – bigger long-term values.”

The implications for the newspaper industry are significant. Traditionally, newspapers have been a single channel medium. Fortunately, that is changing – but is it changing quickly enough to meet the needs of the merchant community?

The faster newspaper companies embrace and develop channels that are complementary to and, in some cases, replacements for the print product, the sooner growth in market share will return. The ability to partner with merchants to communicate and sell across multiple channels – print, web, SMS, telephone, etc. – is absolutely critical to the long-term viability of newspaper companies.

In their heralded publication Net Worth (1999), John Hagel and Marc Singer introduced the concept of the information intermediary – or “Infomediary” – to capture and communicate relevant information to consumers on behalf of the merchant community. The Infomediary offers immense benefits to that community, according to Hagel and Singer.

“Vendors will see their cost of customer acquisition – for many companies their highest marketing cost – significantly decline. They will also reduce churn and increase cross-selling, while gaining more cost-effective insight into opportunities for product enhancements and customization.”

As discussed in ASTECH President Tom Ratkovich’s October 2002 article, “The New Business Model,” the opportunity for newspapers to elevate themselves to the role of Infomediary is unparalleled. It is also essential that they do so…sooner rather than later. The development of multichannel communications capabilities is a critical element of this process.

> Marketing Database Drives Single Copy Sales at AZ Republic

In his recent webcast to the MAAX user community, Greg Bright of the Arizona Republic shared how his company leverages its marketing database to support single copy sales in its market.

Using a combination of geographic, demographic, business and behavioral data, the company has identified high potential sales locations that are clearly under-penetrated. Specific businesses in high opportunity areas have been targeted that are currently not retail partners.

To view the visuals of Greg’s presentation, click here.

The New York Times Regional Media Group (NYTRMG) has selected MAAX and ASTECH InterMedia to upgrade its multichannel marketing automation initiatives.

For the full release, click here.

Newspaper circulation growth is attainable and sustainable -- now. Yet it requires more systematic and targeted approaches. The era of one-size-fits-all is dead.

The 8th Annual INMA Circulation Summit March 8-9 in San Diego aims to shine a bright, urgent light on the systems and processes needed to market newspaper products ranging from print newspapers to web sites to mobile information. The key is understanding customers, how to segment a customer base, how to organize for segmentation, and how to evolve our marketing communications to acquire and retain readers in measurable ways.

Make plans now to attend the 8th Annual INMA Circulation Summit in San Diego. For more details, please click here.

And for those MAAX clients planning to attend the MAAX Users Group meeting at the Palms Casino Hotel Las Vegas on March 5-7, San Diego is just a short hop away. Use your time and travel budget most efficiently and do both!

Source: Jupiter Research, August 2006

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