Non-traditional revenue sources could work wonders for newspapers

By Bob Davis

There I was, sitting in a customer retention call center for a major phone company listening to a top-performing customer retention rep talking to customers who wanted to cancel their service. The phone company was interested in my observations because of all the customer retention work I have done in the newspaper industry, but I was learning more from them on this day then they were learning from me.

Call after call would come in with the customer saying, “I want to cancel my phone line. I just have too many bills, I don’t use my land line that much, and I will just make my calls using my cell phone.”

This particular phone company is losing two million phone lines per quarter!

The top-performing rep I was observing was a joy to watch. He would take a call from a subscriber wanting to cancel land line service, and he would start asking questions.

“What cell phone provider do you use?”

“How do you access the internet?”

“How about TV service—who provides that for your household?”

Finally, he would say, “You know, if you let us provide all those services, you could save a lot more than the price of dropping your land line.”

Caller after caller would come in wanting to cancel their land line and they would leave with a bundle of services they’d had with competitors before the call. In fact, this 200-seat call center sells $28 million worth of extra services to canceling customers each year.

Now how does this apply to the newspaper industry? Right now, your average customer calls you three times a year. For a major metro, that adds up to a million calls per year or more. Right now, newspapers look at these calls as an expense and they try to get these calls done as cheaply as possible.

What if we changed our mind set? What if we took notice that we are getting a million opportunities to sell more services every year? Certainly if a phone company can sell a new TV service to customers who intend to cancel, we should be able to sell something to someone calling in with a vacation hold!

What if we formed a partnership with an insurance agency who is an advertising customer? What if we made a deal with that insurance agency that they would pay us $5 for every customer we transferred to them when they call in with a vacation hold? We could say something like, “Mr. Subscriber, we have a partnership with the Wonderful Insurance Agency. They are giving all of our traveling customers 50 percent off on their travel insurance. If you will just hold the line one moment, I will transfer your call so they can tell you all about it!”

Now a call that used to cost you $1 to take just made you $5 in revenue. Multiply that by your 100,000 vacation stops in a year and it starts to add up.

The opportunities for these partnerships are only limited by your imagination. For example, we could sell subscriptions for our delivery partners. Who better to buy another paper than current newspaper customers? We could do seasonal promotions with our advertisers, offering special prices for our subscribers for each gift-giving holiday. If we have an advertiser who sells snow tires, we could offer our subscribers seasonal discounts. Given recent weather patterns, my friends at the Washington Post might want to jump on this right away!

So the goal for 2010 is to find some non-traditional sources of revenue. Here they are. What are you waiting for?

Bob Davis is the president of Robert C. Davis and Associates (www.robertcdavis.net). He specializes in creating custom programs that deliver measurable results for the newspaper industry. Bob is also co-founder of Surpass (www.surpasscalls.com), an outsource call center serving the needs of newspapers across the country.

The printed newspaper has all the value it needs to win back old customers—and win over the Internet generation

By Bob Davis

A few days ago my wife, Kim, and I were standing in the checkout line at a grocery store. The clerk asked the middle-aged woman ahead of us if she had any coupons.

“I wish I had some coupons,” said the woman, who was shopping with her two grown children. “But I canceled my newspaper subscription, and now I don’t have any.”

Kim asked, “Do you mind if I ask why you canceled your newspaper subscription?”

“I stopped it two weeks ago because they were just piling up, but now I miss it and I am going to order it again,” replied the woman.

“What do you miss most?”

“Besides the coupons, I miss the entertainment section.”

We then turned our attention to the two grown children, who told us that they don’t read the newspaper because they read online, to which their mother chimed in, “I hate reading the paper online. I miss my paper, and I am going to get a new subscription.”

People who read the paper love doing so. For them it is a visceral experience that is as addictive as the morning cup of coffee. And I learned years ago that when you get people talking about what they value in the paper, they are passionate about it and sell themselves on keeping their subscriptions going.

Despite the Internet, I believe that if non-print readers were to experience the daily routine of reading the printed newspaper for one month, they would be as addicted to the physical newspaper as the generation before them.

Bernard Baruch was an advisor to five Presidents, a self-made multi-millionaire, a leader in his church, and a leader in his home and community. When asked the recipe for success, he included his advice to “read the newspaper every day.” In the newspaper business, our noble cause is to bring that ingredient in Bourke’s recipe for success to as many people as possible.

I am writing this article on a Sunday afternoon, after spending a couple hours with the day’s newspaper. I read an op-ed piece about Congressman Paul Ryan from Wisconsin and the tax reform bill that he has introduced into Congress designed to reform our tax code while addressing the pressing issues of health care reform and keeping social security solvent. Now, I surf the web as much as the next person, but I have to admit that before I read about Paul Ryan in the paper today, I had never heard of him, and the format of the print version helped me discover him and become a better informed citizen.

In the same issue, I learned through paid advertising that the acclaimed musical “Mama Mia” opens in my city this week. And I discovered that the Leonardo Davinci “Hand of the Genius” exhibition is at a local museum. The print newspaper continues to deliver valuable information that I would have missed online, and I believe that the newspaper industry owes the citizens of this country the opportunity to stay informed in ways that only print can provide.

Many in our industry are asking, how do we turn the trend of declining print circulation around? How do we get the Internet generation reading the paper in print every day? It all starts with a belief that we can do it—we must believe that:

• If we can just get them to try it, they will like it and benefit from it.

• We offer a key ingredient Bourke’s recipe for success, and if we don’t get the next generation to read the paper, we are doing them a disservice.

• Our product has high value for the price. I pay less than 70 cents a day to get a world-class newspaper delivered to my driveway and filled with enriching information—plus coupons to save me money. Even if I paid a dollar per day, it would be a steal.

• Our online presence is an extension of the newspaper, not a replacement of it.

Once these beliefs are firmly ingrained at every level within the newspaper, we are ready to start turning things around.

Then there’s education. We must reinvigorate our newspaper in education (NIE) programs. We need to partner with high schools and colleges where they use our newspapers every day in the classroom. Ideas include:

• Sponsoring current events classes that require students read the paper.

• Running school contests with great prizes and scholarships students can win by reading the paper.

The bottom line is that industry wide, we need to start selling the paper based on its demonstrated value, not with the latest discount or promotional gimmick. The newspaper is at least as much a bargain today as it was 100 years ago—and probably more of one.

With this kind of approach, I believe we’ll win back subscribers like the woman we met at the grocery store. And as long as we focus on value and experience, we’ll win over the Internet generation, too. It’s a challenge, but we’re up for it.

Bob Davis is the president of Robert C. Davis and Associates (www.robertcdavis.net). He specializes in creating custom programs that deliver measurable results for the newspaper industry. Bob is also co-founder of Surpass (www.surpasscalls.com), an outsource call center serving the needs of newspapers across the country.