Transcript No Slide Title - Western Knight Center for Specialized Journalism

How Consumer Reports Has Sold
Over 1,400,000 Online Subscriptions
Michelle Rutkowski
Marketing Director, ConsumerReports.org
[email protected]
April 16, 2004
Consumers Union
•
Largest nonprofit educational and
consumer product-testing center
in the world
•
Independent testing for 68 years
•
Mission: Test, Inform, and Protect
Consumers
•
Publisher of Consumer Reports
Magazine, ConsumerReports.org,
Books and Special Publications
•
Objective, unbiased product
ratings, recommendations and
advice
•
No advertising
•
Independent of commercial
interests
The Power of the Brand
• Customer trust
• Unbiased, Research-Based Product
Testing
• Independent, Free From Commercial
Interest
• Name Recognition
Consumer Reports magazine
4 million paid subscribers
16 million readers every month
Integrating the Web into the Product Line
• 1978 - Viewtron
• 1986 - Trintex, Prodigy
• 1986 - Dialog Online
• 1988 - Lexis-Nexis
• 1988 - CompuServe
• 1992 - America Online
• 1997 – ConsumerReports.org Launched
• 2001 – Consumer Reports Available on PDAs
• 2001 – ConsumerReports.org Redesigned
• 2002 – Consumer Reports to Go launch
• 2003 – ConsumerReports.org Redesigned
Strategies for Integrating Print and Web
• Extend the Brand
• Establish a Business Model Based on Paid Content
• Integrate Web into the Product Line
• Differentiate Print and Online Products
• Leverage Marketing and Business Development
Opportunities
Four principles for creating and maintaining
a Winning Business Model
• Focus on your customers
• Provide a unique and useful product
• Extend your brand
• Build upon your already successful business
model
Marketing objectives
– Drive new subscriptions
– Retain current subscribers
– Generate incremental revenue from
upsells and cross-sells
– Reach new markets (younger audience)
Consumer Reports Marketing Strategy
• Leverage the Consumer Reports brand online – reinforce
core messages of expert, independent, nonprofit
• Create and implement Web-only content for
ConsumerReports.org
• Provide interactive user tools: search, calculators, configurators
• Use house lists and house media – best source of new business
• Sample content and drive consumers to samples
– Silver content offsite and seasonal PR hubs
• Use search engine optimization (SEO) to identify consumers in
buying/research mode and bring them to site
ConsumerReports.org
Free content –
Sampling and mission
ConsumerReports.org
Paid content
•
Consumer Reports
current issue
Product recalls database &
safety alerts
•
•
Up to four years of back
reports
Selected reports from other
CU publications
•
•
Product, services, and
reliability ratings
Timely special sections
•
•
Links to manufacturers &
other helpful consumer sites
Cars database and car
selector
•
Interactive applications
•
Subscriber Forums
•
Shopping guidance
•
•
e-Ratings of online shopping
sites
Marketing Issues
•
•
•
•
Driving online from other media
“Cannibalization” from print
Cross-selling
Upsells
– Consumers want discounts on multiple subscriptions
• Sequential sales vs. bundling
• How much is too much on sampled content?
• Straightforward sell always works best
– “Non-intuitive” marketing
Marketing Program
Examples
Auto Renewal
email
Dear ConsumerReports.org Subscriber:
Our records indicate that your subscription to
ConsumerReports.org will be renewed soon. That's because you
signed up a year ago with an annual auto-renewing subscription.
If you have updated your billing information in the last few
days, thank you and please disregard this letter. If not, please
help us in confirming your account information.
On the one-year anniversary of your subscription, you will
automatically be renewed for another year of ConsumerReports.org,
and your credit card will be billed accordingly. If any of your
credit card information has changed (e.g., credit card expiration date)
or if you need to change anything regarding your account, please click
on link below to update your account information:
https://www.consumerreports.org/main/user/challenge.jsp
If any of your credit card information has changed (e.g., credit
card expiration date) or if you need to change anything regarding
your account, please click on link below to update your account
information:
https://www.consumerreports.org/main/user/challenge.jsp
As you know, we truly value your readership and commitment to
ConsumerReports.org. That's why we want to make sure you continue
receiving the facts you need to shop smart and buy smart. In our
efforts to continually improve and expand the site, you have
access to more features and information than before:
-
-
Unlimited access to the most recent product Ratings
and recommendations on topics covered in the last
four years
Quick and easy search capability to find exactly the
information you're looking for - FAST
e-Ratings on over 175 top online shopping sites in
19 retail categories
Access to Consumer Reports experts in our Forums
Email alerts with breaking product or safety news
Downloadable reports for your PDA
And much more!
You already know the value of having Consumer Reports' unbiased,
reliable advice at the click of a mouse. We are looking forward
to the upcoming year -- it promises to be an exciting one!
Sincerely,
The ConsumerReports.org Team
P.S. Make sure you check out the great features we have planned,
such as computers, home networking, broadband, dream kitchens,
cell phone alternatives, bike helmets, and more.
-----------------------------------------------------------------Please note: This e-mail was sent from a notification-only
address that cannot accept incoming e-mail. Please do not reply
to this message. If you experience difficulty confirming your
account information, simply click on the link below and choose the
appropriate Help topic.
http://www.consumerreports.org/main/redirect/content.jsp?PATH=/Custserv/custserv.html
Red
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Double Postcard to CR Magazine Subscribers
Sample A. Sample
100 American Avenue
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Webstore or Bookstore Selling Other Products
Monthly
“What’s New”
Opt-in email
Site Conversion – Subscribe Ad Units and Text Links
Plus Send To A Friend
Site Conversion – Bottom Text Link
ConsumerReports.org Home Page
Units in Thousands
1,400
1,200
1,000
800
600
400
200
0
Nov.
'97
Nov.
'98
Nov.
'99
Nov.
'00
Nov.
'01
Oct.
'02
Oct.
'03
Subscribers to ConsumerReports.org
1,400,000 + Paid Subscribers to
ConsumerReports.org
April
'04
Subscription Websites
Website
Business
Paid Subs
12/31/03
AmericanGreetings.com*
Greeting cards
2,100,000
ConsumerInfo.com**
Personal credit reports
1,600,000
Ancestry.com
Genealogy
1,500,000
ConsumerReports.org
Consumer guide
1,300,000
Real.com
News, sports, entertainment
1,300,000
Match.com
Personals
939,000
WSJ.com
Business news
689,000
Everquest.com
Games
430,000
* Includes BlueMountain.com and Egreetings.com
** Includes CreditExpert.com and FreeCreditReport.com (parent: Experian)
Source: Wall Street Journal from Intermarket Group LP and the companies listed
ConsumerWebWatch.org
How Consumer Reports Has Sold Over
1,400,000 Online Subscriptions
Michelle Rutkowski
Marketing Director, ConsumerReports.org
[email protected]
April 16, 2004