Tuesday, July 11, 2006

Reversing Circulation Decline

By selling the value proposition instead of discounts and by becoming world-class sales organizations, circulation departments can turn the tables on an alarming trend

By Bob Davis

Newspapers across the country have been struggling with declining circulation, but it doesn't have to be that way. The solution is for every circulation department to become a world-class sales organization.

The industry has maintained single-copy sales for the most part, but many organizations have outsourced new subscription sales. The problem with outsourcing is that the paper is paying for bill-me orders instead of prepaids because outsourcers find that bill-me orders are the easiest sales to make. The problem is that they also make it easy for someone who has no intention of paying for the paper enjoy a free subscription for a while.
A missed point

What's more, newspapers are being sold in two ways today - with discounts, and with deeper discounts. When the telephone or kiosk rep is selling a discount with a free umbrella or gift card, subscribers aren't thinking about the value they will receive from the newspaper. It's all about the deal.

In crewing situations, the representative is also selling the discount. Often, however, the prospect buys because he or she wants to help the young person who is standing on the doorstep almost begging for some help. The value of the newspaper remains a missed point.

In my work as a consultant in newspaper sales, retention and coaching, I have seen many newspapers turn circulation decline into circulation growth by selling the value of the paper instead of a discount or giveaway offer. In fact, when representatives tie the subscriber's wants, interests and needs to features and benefits of the paper, they not only get the sale but also get a prepaid order.

Building rapport

It all comes down to developing and using a consistent, robust sales process that allows representatives - whether they're on the phone, at a kiosk, or on the doorstep -to build rapport with subscribers instantly.

This sales process, when applied consistently, makes a real difference in winning long-term, prepaid subscribers who understand the value of the newspaper; subscribers who go in knowing they're getting their money's worth. That's a powerful proposition.

The process starts with an enthusiastic greeting and name exchange that builds rapport with the prospect. Most importantly, it involves a discovery phase. The rep asks key questions that help prospects sell themselves on the value of the paper by talking about what they like about it:

• "How often do you pick up the paper?"

• "When you pick up the paper what is your favorite section?"

• "Do you use the coupons in the Sunday paper? How much do you figure they save you each week?"

Prepaids and the assumptive close

Almost before the rep knows it, prospects are listing all the reasons they would benefit from a subscription. They see the value and are ready to respond positively to the assumptive close we use in this sales process. The result is a prepaid order through EZ Pay!

Now it is true that the Do Not Call Registry has changed the landscape for telemarketing by making 70 percent of our prospects unavailable by phone. However, the remaining 30 percent represents a large segment of the population. Selling the value proposition to this segment of the market through a robust sales process will produce a significant number of new subscriptions. In the crew and kiosk sales channels, the process will boost numbers dramatically as well.

The bottom line is that the circulation department and the entire newspaper organization must own the sale of its products and services instead of outsourcing. It requires the circulation department to be filled with telephone, crew and kiosk representatives who can sell the value of the newspaper.

I urge today's newspaper executives to take some time to visit your call center or outsourcer, accompany your crews, and stop in at your kiosks to listen to how your product is being sold today. Is it a source of pride as you listen, or is it time to implement a new, more robust way of selling your newspaper?

The best value in America

When you stop and think about it, your product is already the best value in America today. Why should you discount it? Using the value proposition, I have helped major newspapers go from declining sales to increased circulation. If everyone in our industry did the same, we would turn the declining sales trend on its ear.