Check out the notes from the July, 2010 ABC Board meeting.
http://www.accessabc.com/press/ma0710us.htm#news
Interesting new 5% pricing rule for counting mutiple products (bundling), including mobile apps and e-readers, as paid circulation. Opportunity??
Wednesday, July 28, 2010
Friday, July 9, 2010
Tiered Discounting
Retaining customers is an objective that gets more and more challenging every day. Beyond the "touches" we use to reach out to customers, pricing models can play a vital role. Here is one we're experimenting with that seems to be paying off.
We are testing a tiered discount program where a customer gets a lower weekly rate when they pay for a longer term Even though this may not be a new marketing concept, it's a new and attractive option for our customers. Our terms are currently set up as 12, 26, or 52 weeks. The customer is notified of the option to SAVE MONEY via a message on the invoice (copy of invoice is below). Basically, if they pay for 52 weeks they will be saving 20 cents per week or a total savings of $10.40 per year. Paying for 26 weeks will be saving them 10 cents per week which is a savings of $2.60 for the term.
Early results show an increase of 80% in the percentage of customers paying for 52 weeks and a 25% increase for 26 weeks. On the negative side there is an additional discount expense incurred. However, by reducing the churn through customers paying longer terms, we will get more "BANG for our buck."
Let us know what's working, or programs you may be testing in your market to battle churn and improve retention.
We are testing a tiered discount program where a customer gets a lower weekly rate when they pay for a longer term Even though this may not be a new marketing concept, it's a new and attractive option for our customers. Our terms are currently set up as 12, 26, or 52 weeks. The customer is notified of the option to SAVE MONEY via a message on the invoice (copy of invoice is below). Basically, if they pay for 52 weeks they will be saving 20 cents per week or a total savings of $10.40 per year. Paying for 26 weeks will be saving them 10 cents per week which is a savings of $2.60 for the term.
Early results show an increase of 80% in the percentage of customers paying for 52 weeks and a 25% increase for 26 weeks. On the negative side there is an additional discount expense incurred. However, by reducing the churn through customers paying longer terms, we will get more "BANG for our buck."
Let us know what's working, or programs you may be testing in your market to battle churn and improve retention.
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