Navigating Pricing in Evolving Delivery Models
Dear reader,
Many publishers are thinking about switching print subscribers from home to mail delivery to tackle rising costs and labor shortages. But this shift brings up a big question: How should they adjust their pricing strategy accordingly?
In this edition of Mather Insights, we share key insights into what to expect to ensure a smooth transition along with pricing best practices. We also cover proven tactics for mastering election coverage this year, provide a recap of the expert perspectives shared in our latest pricing webinar, and offer an insightful blog on understanding subscription propensity.
With lots of great content to cover, let’s dive in!
In today’s newsletter:
From Doorstep to Mailbox: Navigating Subscription Pricing During Delivery Transitions
Labor shortages and rising costs have driven many news publishers to transition segments of their print subscriber base from home delivery to mail delivery.
This shift introduces significant questions about how to manage revenue and pricing strategies effectively. Understanding the impacts of such a major change is crucial for publishers aiming to navigate this transition successfully and minimize the effects on volume and revenue.
What we observe from Mather’s benchmark data, drawn from more than 60 markets undergoing this conversion, is an initial spike in churn post-announcement, which often remains elevated for several months (see chart 1). This article examines the effects of transitioning from home to mail delivery on churn. It also explores insights from real-world A/B testing to guide effective pricing and retention management during delivery model changes.
To pause or not to pause: navigating renewal pricing decisions
The initial instinct among most publishers is to address all subscriber touchpoints to try to mitigate churn associated with the transition. While this approach is advisable, renewal pricing deserves special consideration.
Many publishers pause renewal pricing for subscribers affected by mail transitions. While this is a common practice, it is crucial to differentiate between organic churn and price-related churn and consider the revenue implications of such a strategy before making a decision.
Continue reading to learn what Mather’s research reveals.
Mastering Election Coverage: Publisher Strategies and Insights for 2024
Elections aren’t just a test of democracy—they’re the ultimate stage where news media can prove their worth, guiding the public through the noise to the heart of the truth. Beyond fulfilling their journalistic mission, elections present a strategic business opportunity for publishers. The increase in readership during election periods allows for deeper audience engagement, expanded reach, and content monetization opportunities. To maximize these benefits, it’s crucial for publishers to approach their election coverage strategically.
Learning from the Past for Future Success
The 2020 U.S. presidential election revealed several insights that remain relevant today and can guide publishers in 2024. While the timing can vary by season and locality, most publishers begin offering election-related content in June. Mather’s 2020 benchmarks (see Chart 1) show that election content production increases throughout the season, peaking at around 14% of total articles in November. Similarly, article page views during this period represented 21% of total page views.
Interestingly, the proportion of election content leading to conversions more than tripled from September to October in 2020, rising from 6% to 19%. This indicates that election content has an outsized impact on the path to conversion versus article page views in most months, making this timeframe ideal for marketing this content and delivering personalized subscription offers to this audience. To optimize results, newsrooms should strategically align their election content supply with anticipated demand, especially during the final two months of the season when engagement and conversions peak.
We hope you’ve found many valuable insights in this newsletter! Don’t forget to share any content suggestions you may have here. Be sure to share this edition with your peers so they can discover valuable and actionable strategies to refine their business approach.
See you next month!
-The Mather Team