Subscription Accelerator: Key Digital Subscription Metrics INMA Media Subscriptions Week 3.0 February 26, 2020
Session Overview Objective: Discuss 10 key metrics Subs Lab Impact: that significantly impact digital subscription performance Background: These metrics were developed during the Google News Initiative North America Subs Lab, a year-long collaborative program of 10 local publishers attempting to scale digital subscriptions and revenue
Key Metric Framework Customer Journey Select Metric(s) 1 Audience Penetration Subscriber Penetration ATTRACT Visits per UV Visit Frequency | Site 2 Depth Page Speed ENGAGE Registration | “Known” % of “Known” UVs 3 Audience Intercept Rate Paid Subscriber Conversion 4 Starts per UV CONVERT Purchase Intent Article Count Distribution 5 Monetization Effective ARPU 6 RETAIN Monthly Churn Rate Retention | Engagement 7 Newsletter Sub % 3 3
10 Key Digital Subscription Metrics 1 6 Visits Per Unique Visitor Newsletter Subscriber % 2 7 % Known Visitors Monthly Churn Rate 3 8 Article Count Distribution Effective ARPU 4 9 Intercept Rate Page Speed 5 Starts Per Unique Visitor 10 Subscriber Penetration 4
DEFINITION Visits Per UV = Visits / Unique Visitors [Monthly] • Visit frequency is the most WHY IT’S critical metric for establishing IMPORTANT? customer stickiness • Publishers should seek an WHAT’S THE average of 2.0x+ Visits per UV GAP? Goal • Newsletters | push notifications HOW DO WE ADDRESS? • AM |PM editions GNI North America Subs Lab Publishers 5
DEFINITION % Known Visitors = Known UVs / Total UVs [Monthly] • Increasing “Known” audience Goal allows for more effective WHY IT’S IMPORTANT? marketing as well as an optimized user experience WHAT’S THE • Target known audience of 5% GAP? • Newsletter sign up HOW DO WE ADDRESS? • Registration GNI North America Subs Lab Publishers
DEFINITION Article Count Distribution = % Per Article [Monthly] • Guides paywall strategy to WHY IT’S IMPORTANT? optimize intercept rate • Roughly 70% of traffic WHAT’S THE reflects 1 article “fly - by” GAP? traffic • Recirculation efforts HOW DO WE • Newsletters ADDRESS? GNI North America Subs Lab Publishers
DEFINITION Intercept Rate = Paywall UVs / Total UVs [Monthly] Intercept Rate by Paywall Setting • Intercept rate is a critical measure WHY IT’S for indicating the tightness of a IMPORTANT? publisher’s paywall • Most publishers have intercept rates WHAT’S THE that are too low given their digital GAP? Goal subscription objectives • Adjust paywall settings – meter, HOW DO WE Industry GNI North America Subs Lab Publishers ADDRESS? premium content, archive, etc.
DEFINITION Starts Per UV = Starts / UVs [Monthly] • Ultimate measure of Goal subscriber conversion WHY IT’S IMPORTANT? effectiveness of current audience • Publishers are converting WHAT’S THE less than 0.10% of UVs per GAP? month • Maximize subscription HOW DO WE funnel and email marketing ADDRESS? efforts GNI North America Subs Lab Publishers 9
DEFINITION Newsletter Subscriber % = Newsletter Subs / UVs [Monthly] Newsletter Subscriber % • Newsletters are key path to WHY IT’S conversion along with IMPORTANT? subscriber engagement • Publishers push for newsletter signups with WHAT’S THE varying degrees of GAP? frequency • Increasing the number of newsletter signup options HOW DO WE ADDRESS? (inline, modal, exit intent, purchase flow, etc.) GNI North America Subs Lab Publishers 10
DEFINITION Monthly Churn Rate = Cancellations / Subscribers [Begin Month] • Subscriber retention is critical to WHY IT’S IMPORTANT? maintain growth trajectory • While typical churn ranges between 3- 4% month, publishers should minimize WHAT’S THE churn via two-pronged approach for GAP? voluntary and involuntary churn • Subscriber nurture | engagement Goal practices HOW DO WE ADDRESS? • Non-pay churn by automatic credit card update services and recycling GNI North America Subs Lab Publishers 11
DEFINITION Effective ARPU = Subscription Revenue / Subscribers [Monthly] • ARPU may be more Goal important for driving WHY IT’S IMPORTANT? sustainability than both conversion and penetration • Industry price leaders WHAT’S THE exceed $20 per month for Large GAP? Digital-Only subscribers Med Small • Price Testing HOW DO WE • Tiered | Premium Models ADDRESS? Industry GNI North America Subs Lab Publishers 12
Page Speed [Home Page Measurement] 100 • 50%+ of visitors bounce if a site GNI Subs Lab Leading Publishers 90 WHY IT’S doesn’t load fully within 3 IMPORTANT? seconds [Google NCI Playbook] 80 70 60 • Few publisher prioritize page Goal WHAT’S THE speed 50 GAP? • Mobile is particularly slow 40 30 Goal • Consistent measurement | 20 auditing HOW DO WE • Organizational priority – ADDRESS? 10 understanding tradeoffs 0 Mobile Desktop 13
Page Speed Live Test [Google Page Speed Insights] 14
Subscriber Penetration = Subscribers [Cumulative] / UVs [Monthly] • Overall measure of digital WHY IT’S IMPORTANT? subscriber success Goal • Target 1.5% - 2.0% in the WHAT’S THE immediate term; 2.5%+ in GAP? the long-term • Making digital subscriptions a priority across the HOW DO WE organization ADDRESS? • North star metric 15
Q&A
Thank You PETE DOUCETTE MANAGING DIRECTOR | BUSINESS TRANSFORMATION PETE.DOUCETTE@FTICONSULTING.COM 617.747.1709
EXPERTS WITH ™ IMPACT
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