Profiting From Your Databases

1. Profiting From Your Databases • General observations and data dilemmas • Data auditing – evaluating your database • The traditional b2b publishing model & the relationship between data,distribution, costs and profitability • Data – a springboard for the future

2. General Observations • Data is the cornerstone of any successful publishing business • Data is generally misunderstood and under-utilised by publishers • Departments within companies can be very possessive with their data • You can only collect data if you ask for it

3. General Data Dilemmas • I don’t know what the value of my database is • I can’t put a value to a single customer on my database • How do I justify investment in my databases? • How can I use my database to increase profits?

4. Profiting From Your Databases • General observations and data dilemmas • Data auditing – evaluating your database • The traditional b2b publishing model & the relationship between data, distribution, costs and profitability • Data – a springboard for the future

5. Data Auditing - Evaluating Your Database • What is your data worth? • Can you make it more valuable? • Does your database comply with your business model or goals? • Is your data compliant with the data protection act?

6. How Much Is Your Data Worth? • To advertisers (display, recruitment and classified) • For list rental ( direct mail, telephone and email) • For the business (ability to cross-market and propensity to buy other products) • As a launch pad for new products and services

7. Revenue Streams From Data • Advertising revenue • List rental revenue • Subscription revenue • Revenue from other products and services. (e.g. conferences, live events,websites, exhibitions)

8. Costs of Data & Fulfilment • Data collection • Data maintenance • Magazine distribution • Subscription fulfilment • Marketing promotions

9. Data Collection • What data do you need? • Is it enough? • Is it too much? • Dependent upon business model. The more data you have the easier it is to evaluate and the more profitable it can be. Too many questions, however, and it can put customers off.

10. Data Collection • Data collection is just the starting point – build on your knowledge of your customer by regular communications • Make sure that you are utilising as many forms of data collection as you can • Ensure that data collected from various departments within your organisation can move to the centre • Where possible standardise demographic data

11. Revenue Generating Versus Loss Making • Only a proportion of your database is actually making you money. • A sizeable portion of your database is actually costing you money. • The key is to identify the profitable parts and to deal with the unprofitable areas. • Unprofitable data can be turned into profitable data.

12. Profitable Data • Your most valued customers • Understand who they are and communicate with them accordingly • Build loyalty • Improve your understanding of them with stepped communications – research, reader offers etc

13. Profiting From Your Databases • General observations and data dilemmas • Data auditing – evaluating your database • The traditional b2b publishing model & the relationship between data, distribution, costs and profitability • Data – a springboard for the future

14. Traditional b2b Publishing Model • The “Free Lunch Syndrome” • Publisher works to pre-defined number of copies going to the market to maintain advertising revenues • It is the overall number of readers that matters more than anything – as long as advertisers are happy we’re happy

15. Traditional b2b Publishing Model • Most copies are free • Subscription bases are small in comparison to free circulation • May have a small news trade presence

16. Why This Model Is No Longer Sustainable • Advertising markets in many sectors static • Rising distribution costs • New areas of revenue generation based on paying customers • Newstrade sales for b2b titles in decline

17. “Free Lunch Syndrome” The chances are a significant percentage of your readers: • Do not fit into the advertising team’s ideal circulation model. • Are expensive to distribute your magazine to.

18. “Free Lunch Syndrome” • Have expressed a desire not be passed onto third parties via list rental. • Do not even want to be contacted about your own products and services. • The reality – a significant proportion of your readers don’t actually make you any money – they in fact cost you money.

19. Case Study - Marketing • One of Haymarket’s flagship titles • Re-launched in 2004 with an increased controlled circulation • 4,500 subscribers • 2,500 newsstand sales

20. Case Study - Marketing • 43,000 controlled circulation readers. • Key advertising target audience – senior marketers and brand management in client companies,particular the FMCG, financial and retail sectors and senior agency personnel. • Distributed via a mixture of next day couriers and royal mail.

21. Case Study - Marketing • Circulation objective – deliver the right audience for advertisers. • Increase subscription volumes despite increase in controlled circulation readership. • Reduce distribution costs.

22. Case Study - Marketing • Removed 6,000 readers from controlled circulation. • They were not in the strict definition of the ideal advertising audience. • They were based outside of city centres or in companies only receiving one copy of the magazine.

23. Case Study - Marketing • They were readers who did not wish us to cross-market to them other Haymarket products. • They were readers who did not want to be used for third party list rental. • They were the readers who were costing us money to service them.

24. Case Study – Marketing • We replaced them with readers of a higher worth to advertisers. • Increased advertising revenues. • Gained a competitive advantage.

25. Case Study – Marketing • We have maximised our press stream discounts – saving a further £80k per annum on distribution costs. • We have improved our unit costs of next day courier delivery – saving approximately £30k per annum. • We have currently converted 5% to a paid subscription generating a further £30k per annum to subscription revenues.

26. Case Study – Marketing • We have turned unprofitable readers into profitable customers. • We have made a gain on the bottom line of £140k. • Long-term gains will increase this further.

27. Profiting From Your Databases • General observations and data dilemmas • Data auditing – evaluating your database • The traditional b2b publishing model & the relationship between data, distribution, costs and profitability • Data – a springboard for the future

28. Data – a Springboard for the Future • Better understanding of your customers will improve your marketing efforts. • Your own customer database is the best research tool you could have. • Listening to your customers will enable you develop sustainable products and services for the future.

29. Data – a Springboard for the Future • Moving more of your readers from a free basis into having a paid transactional relationship with you will enable you to grow new revenue generating areas within the business that are not solely reliant on advertising or sponsorship. • Look at you data collection methods - make sure that the demographics you collect are relevant for your business model or relevant for where you want to take the business in the future.