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The art of customer retention through community building

As people struggled to stay entertained and informed while in lockdown, their media consumption exploded – and that’s not just for popular streaming services like Netflix and Hulu, but also for magazines and newspapers.

In fact, publishers have not only attracted more readers during the pandemic, they’ve also seen subscriptions boom. Bloomberg Media witnessed record subscriber numbers, with the average daily subscriber count being three times higher than usual. The New York Times subscription revenue rose 5.4% during three months in 2020, gaining a record 600,000 new digital subscribers. Major UK publisher Dennis Publishing recently reported that subscription rates across all its titles have grown by 9%. Similarly, Condé Nast has seen new subscribers in the US double, with subscription orders for UK titles up 420% compared with the same period in 2019.

As publishers contend with diminishing ad revenues, customer acquisition becomes even more vital to success. A bigger challenge is ensuring customer retention. That these new customers stick around once the world returns to some form of normality and stability, and people leave their screens behind, emerging blinking into the daylight. And, of course, this is already starting to happen in many parts of the world.

The value of subscription retention is clear, particularly when you consider that it’s four to five times cheaper to keep existing subscribers than acquiring new ones, according to research from the Financial Times.

There are several common tactics used to increase retention. New product development, pricing strategies, newsletters, events, apps and perks to name a few. These are designed to do one thing: develop a relationship between a media brand and its customers. But in the rush to attract and then lock in subscribers, those titles that look beyond traditional publishing strategies and innovate to boost reader engagement and strengthen relationships will be the winners. 

For example, the idea of community is an overlooked aspect of driving customer retention. A subscription to a magazine is a part of someone’s self-identity. Building a community of fans around this self-identity is the key to increasing loyalty and love.

Look at the support sports teams like The Chicago Bulls and Manchester United have built. Players and coaches come and go, but love for these organisations will never fade as they are at the centre of a community.

So, how can publishing brands create a community of fans? The key is driving human connection under the banner of the brand; essentially, to step off the page and into people’s lives. Taking a look outside publishing can provide key inspiration as to how to achieve this.

Some of the most successful brands in other categories have built an almost cult-like following by bringing together like-minded people under a set of shared values. Several have used this principle to drive loyalty.

Take Vans, for instance. It has built a mainstream following, but its core fans have always been in the skating and snowboarding community. To prove its support and dedication to this group, Vans has built enormous skateparks in a number of cities worldwide, coupled with annual extreme sports and music events – demonstrating it’s more than a company; it’s a way of life.

Meanwhile, in the drinks sector, BrewDog has grown one of the most engaged communities of any beer brand. From Chain Gang cycling groups and a crowdfunded hotel, to creating a TV network and selling company shares in their pubs, BrewDog has led the way in terms of customer engagement and loyalty by focusing on consumer passion points and bold creative branding.

Customer Retention Through Purpose

Right now, purpose has never been more powerful. By learning from other brands, this can provide a key way for publishers to galvanise their audiences.

For example, politics is a part of the outdoor clothing brand Patagonia’s identity. It was one of the pioneers of the Stop Funding Hate movement, which boycotts advertising on Facebook, as well as creating a text petition for Americans to lobby the government to remove all climate deniers from office. This willingness to stand up for what it believes in alienates some but fosters deep devotion from others.

From its support of Colin Kaepernick to its Running Clubs, despite being a global sports brand, Nike has always put itself at the center of its community. For example, in 2015, it collaborated with fashion brand Pigalle on the stunning renovation of a basketball court in the heart of Paris, showing its commitment to athletes in deprived communities. 

The most successful brands in the world create environments for communities to form around them, with activations and experiences playing a key role in their strategies. To boost retention, publishers should take inspiration from them and create mechanics in their marketing to bring like-minded people together under a set of shared values. It’s an opportunity to create cut through by taking the brand off of the page or the screen and into the real world.

A good example is The Texas Tribune’s tiered approach, which treats every reader who pledges ongoing support as a member, each enjoying key benefits. First-tier members gain access to behind-the-scenes insights, including Q&As with reporters, together with discounted rates and priority status at its annual festival. Those making higher donations receive invitations to exclusive experiences where they can rub shoulders with political insiders and other influential figures, as well as network with fellow community members and industry colleagues. They even get discounted rates for the Tribune’s event space.

When taking this approach, three factors are key to success: Be different – the best marketing is distinctive and genuine; be agile – keep up with and, if possible, anticipate your audience’s next move; be committed – building a loyal fan base doesn’t happen overnight.

If publishers follow these rules consistently as part of an ongoing engagement strategy, while continuing to learn from the innovative and creative approaches of other brands, their loyal audience community will start to grow. Customer retention will happen naturally, and they will not only retain subscribers, but also capture more, helping overcome falling advertising revenues and driving future success.

Hayley James is Vice President at global brand experience agency Sense New York.

This article first appeared in What’s New In Publishing.

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Articles Insights US

As screen fatigue bites, how can brands walk the analog/digital tightrope?

Before the coronavirus outbreak, Millennials were increasingly abiding by the trendy advice that excessive “screen time” was as bad as smoking, but for your brain. However, just days into quarantine, our devices became portals to employment, virtual experiences, and education, and a lifeline to (often reluctantly) staying connected to the in-laws, ordering toilet roll in droves, maintaining our manes on YouTube, and enjoying some escapism in the form of channeling our anxieties into memes. Screen time went from sin to survival tool

People have self-reported being glued to screens 30-70% more. Kids’ screen time is up by 50%. Gaming is up by 75%. Zoom has become a household verb. Dancing grannies have gone viral on TikTok. Things got weird on Houseparty. It’s safe to say that Coronavirus ended the screen-time debate. Screens won, for now at least.  

Virtual experiences

With the social distancing rules came the surge in virtual experiences and events. Perhaps one of the most notable of all being the Travis Scott Fortnite concert, which was lauded by many as “surreal and spectacular”. Conversely, a writer for The Rolling Stones described it as “a full on sensory assault” that “felt like marketing”, with Travis himself depicted as a “giant capitalist”.  Regardless of which side you’re on, there’s no denying that attracting over 12 million viewers is impressive – and that virtual experiences can be a powerful and effective means of brand connection with audiences, especially when interactivity lies at the heart.

Now, months into the pandemic, screen fatigue is setting in. Our attention spans are waning rapidly after enduring a number of decidedly mediocre online ‘experiences’. We’ve given up on Zoom happy hours and quizzes with friends we haven’t seen since college. We’re running out of shows to binge on Netflix, HBO, Hulu and any other streaming platforms we can feast our (increasingly rather tired) eyes on. Not to mention the damage that the blue light is doing to our sleep patterns. Then there’s the newfound ability to nail the Hunchback of Notre Damn impersonation after weeks of incessant videocalls. 

As the Screen Time app abruptly reminds us of the staggering number of hours we have spent surgically attached to our devices, many of us have been dusting off old vinyl, writing letters to friends, keeping journals, baking banana bread, digging out board games and swapping books with neighbors. All the result of a craving for some kind of tactile physical experience that a predominantly digital world cannot deliver, which has also driven the increased consumption of newspapers and magazines. This shift represents the resurrection of human emotion and value, which is needed now more than ever, reflected in a new 30-second ad from Mars Wrigley’s Extra Gum, which seeks to celebrate the connections that occur offline. 

As we’ve seen in reams of research pre-pandemic, Millennials in particular (who have a projected spending power of $1.4 trillion in the US alone) have been in search of analog for some time, which has helped drive the experience economy. A study by Harris Group found that 72% of this powerful demographic would rather open up their wallets based on experiences than spend on material items – one of the very few ‘nice’ stereotypes attributed to this vilified group (full disclosure: I’m one of them). Cue the excessive use of ball pits, morning raves, “Instagram museums” built for the selfie obsessed and the notion that, if you didn’t it post on social, it didn’t really happen. As a result, in recent years, we’ve witnessed an influx of experiences that arguably prioritized social over the real world, which have frequently led to creating purgatory, not pleasure! 

On the contrary, there’s also been a reaction against the always-on digital lifestyle through a wave of neo-luddism – the philosophy that opposes modern technology, due to the psychological cost of constant checking and swiping, the fear of data misuse, political polarization and so on. This has resulted in young people quitting social media platforms in their droves, with Facebook being the worst hit. We’ve seen the launch of Yondr (pouches to help organisers keep people off their phones at events), hugely successful You Had To Be There parties in the US and Unplugged Festivals in the UK (banning phones), and Bashful (an app that locks you out of your smartphone at set times) – just to name a few examples.

So, with this in mind, how can brands walk the tightrope of analog and digital, and deliver unforgettable brand experiences during a pandemic? How can they adapt the brand experience strategy to fulfil the consumer need for something tangible and more meaningful, while maximizing digital in a genuinely helpful way?      

A pandemic playbook for marketers doesn’t exist, but there are some key pieces of advice to take on board for virtual experiences:

Think idea first, media second

Now that we’re slowly moving into a ‘new normal’ phase, there’s no excuse for vanilla. We can learn a lot from Burger King’s global CMO Fernando Machado who is “100% focused on the idea” – and doesn’t get caught up in the channel. Machado and his team have been delivering some of the most award-winning brand experiences over the past three to four years, combining analog and digital, and proving this approach is a winner. 

Ask heretical questions about your brand

Questions that jolt preconceptions and spark healthy debate, to develop strategies and creative ideas that will thrive in the outside world. It’s what led to Trojan’s ‘Rising Time’ cookbook, which was designed to spark passion during lockdown. A physical book which played into certain lockdown habits (encouraging those that were notably missing, cue the ‘Rye’d That D’ recipe) – generating a huge amount of press and traction online.

Humanize your brand and exercise empathy

A smart example of brands keeping it real is the Babe Wine and Bumble collaboration, which together created a real life ‘moving company’ to save people from living with their ex during the pandemic. They’ve even managed to land a touch of humor and avoided the hugely overused and frequently insincere ‘we’re in it together’ trope.

Practice reciprocity

Heineken’s latest ‘Stadium in a Box’ contest brings the sports venue to your home, with a replica seat, a Heineken beer fridge and a gift certificate for game day eats. Generosity in the form of physical items and experiences will go a long way in creating FOMO-fueled experiences, especially when combined with digital to maximize reach. 

Think beyond eyeballs and impressions

A digital ad is counted as a view when just 50% of its area is visible on the screen for at least two seconds. When this is coupled with the fact that, according to WFA, 10-30% of global digital ad spend is wasted on fraud, it pays to think user engagement and experience first.

Analog and digital are not concepts that should be considered in a dichotomized way

Some of the best brand experiences demonstrate that they must and should coexist, especially when they are participatory. No doubt the recent collaboration between Punchdrunk and Pokemon Go will demonstrate this brilliantly.

Tear up the rule book

Let’s make room for fresh and innovative ways to connect with audiences, focusing on being more genuine and authentic than ever before, avoiding tricks and gimmicks that cynical audiences see straight through.

Hayley James is Vice President of global brand experience agency, Sense New York.

This article first appeared in AdWeek.

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Experiential. Neither dead nor forgotten, but redefined

It wasn’t long ago that experiential marketing was hailed the future for most industries… but since the Covid-19 crisis, experiential is facing a seismic shift with many questioning its ability to bounce back and its place in the marketing mix.

This has led to a dizzying use of the word ‘pivot’ and multiple brainstorms debating, “how will we use [insert latest hot new ephemeral geo-fenced live-streaming video social platform]?” 

This kind of thinking could be true of experiential if you define it as a marketing channel that only serves up virtual events – or face-to-face experiences, such as events, conferences, pop-ups, sampling and so on.

However, experiential marketing is in fact a whole lot more than that. It is a technique that represents the absence of channel. It’s format-free – designed to be disruptive, relevant, and inspiring – meaning the creative opportunities are truly endless.

Experiential Marketing Campaigns During The Pandemic

Since the start of the pandemic, communities worldwide have been applying this experiential technique on a grassroots level, with incredibly creative results. We’ve seen numerous drive-in raves, neighbors in Ireland enjoyed projected movie screenings together, artists have been leaving rainbow benches across London, and florist, Lewis Miller, thanked healthcare workers through flower flashes in New York.

Experiential activation for brands is about adding color to somebody’s day. About truly standing out and resonating in a way that a 2D experience often cannot. It’s when a brand becomes human, feels empathy, uses humor, and says it how it really is. Something, no doubt, that we’re all craving right now.

An experiential moment with a brand can take place in many forms. It’s walking into an Apple store that’s designed to feel like a ‘town square’. It’s Patagonia telling you not to buy their jacket to help tackle the issue of consumerism. It’s Purina creating interactive billboards that scans canine urine for diseases. It’s the Nike x Pigalle technicolor basketball court that brightens up an otherwise grey street. It’s Google’s AR experience that tells stories of the Stonewall Riots. More recently, it’s Trojan’s recent ‘Rising Time’ cookbook which is designed to spark passion during the lockdown, and Burger King encouraging people to use their billboards as Zoom backdrops for money off coupons.

In June, we saw Babe Wine take to the streets of Brooklyn, with their baby pink socially distanced truck, offering free manicures to New Yorkers – and much welcomed TLC. The founder, Josh Ostovsky – the man behind the popular Instagram account “The Fat Jewish” – came up with the idea. It was designed to be a one-off experience, but the brand is now brainstorming additional locations, due to the huge amount of PR and social traction received – and lines seen around the block. This proves the huge demand for safe, real-world experiences and is hopefully a sign of what’s to come from brands.

Experiential digital moments have undoubtedly served us well these last few months and will continue to do so in the future. However, as people step back into the real world, brands should relish this chance to deliver unique creative moments to capture the hearts and minds of those craving life beyond the screen.

Taking this on board, the approach to briefing for great experiential ideas is this:

  • Keep the brief focused on the business problem – stay media neutral and avoid getting prescriptive 
  • Ask heretical questions about your brand and business challenge. Encourage your team to be brave and open-minded to do the same. Instil the mentality that no idea is a bad idea
  • Seek out productive tension. Tension makes people pay attention, especially in today’s crowded market. In a tedious world of routine, it pays to be different    
  • Never be afraid to think big and push the boundaries. Experiential is meant to leave a lasting impression so constantly test yourself, your team and the limits of your creativity
  • Analog and digital are not concepts that should be considered in a dichotomized way. They must and should coexist
  • Be agile. The future belongs to the fast

For brands looking to cut through and build relationships in this ever-changing world, the brand experience marketing agency must not forget that experience is everything.

Experiential needs a more holistic treatment to reveal its full potential. It’s isn’t dead, it’s just being redefined.

This article first appeared in Campaign US and UK.

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The COVID Divide

Over the past few months, COVID-19 has been described as the ‘great leveller’. Although many have debunked this label due to the virus’s disproportionate impact on certain communities, the idea that we’ve all been impacted in the same way has led to a lack of nuance in the way brands have approached their recent comms. 

Put simply, some brands have failed to consider their audience or their product when planning their brand communication in response to COVID-19. We have all seen the generic ads. The tinkling of a piano, the smiling faces on Zoom, the ‘unprecedented times.’ This approach lacks empathy at best and is boring at worst, the cardinal sin for marketing. 

COVID-19 Considerations For Brand Communication

Research undertaken by The Futures Lab paints a different picture regarding the differences in attitudes towards COVID-19. Take age as an example. There are stark differences in opinions towards COVID-19 in those aged under 45 years old versus those over 45. The following statistics are taken from YouGov and represent statistically significant differences between demographics:

  • 19% of under 45s say they are not coping well with the current situation compared to 8% of over 45s
  • 51% of under 45s are worried about their financial situation compared to 42% of over 45s

There are differences between the attitudes of men and women also:

  • 76% of women describe themselves as worried about their family’s health compared to 65% of men
  • 45% of men say they are not scared of COVID-19 compared to 30% of women

And differences between social groups:

  • 39% of ABC1 are not worried about losing their job compared to 30% of C2DE

It is simply not true to assume all people have been impacted by COVID-19 in the same way. It is essential for brands to consider this when planning their next steps. The short term is over. The time has come for long-term thinking. There are big opportunities for those who embrace the nuance and connect with consumers in a more targeted, personal, authentic way.

As we emerge from lockdown, while the average person may still be hesitant to venture out, younger demographics are desperate to return to the social environments. This provides a great opportunity for brands to connect more deeply with their audience by pioneering the return of experiential marketing and in-person experiences with the appropriate social distancing and sanitisation measures in place. When it comes to marketing, it is always good to be distinctive. However, for some brands, it essential to push forward and create the new world. Especially when it’s what their audience is demanding. 

Vaughan Edmonds is Planner at Sense.

The Futures Lab by Sense examines changing consumer behaviour to understand how people and brands can continue to connect in the real world.

This article first appeared in Advertising Week.

Experiential

Whether it be Festivals, Trade Shows, PR Stunts, Installations or Pop Ups to name a few, we believe brand experiences are one of the most powerful forms of marketing to impact consumer perception and attitude towards a brand. They can create real behaviour change when born out of a deep consumer insight allied to a compelling idea. And it’s these fundamentals we look to get right whatever the live, virtual or hybrid task in hand.

Sampling.

Sampling is all too often perceived as an unsophisticated, somewhat ‘blunt’ marketing tool. Over the last 16 years Sense has pioneered a set of strategic principles which underpin our unique approach to sampling and which are highly measurable from both an ROI and consumer behaviour change perspective. We will happily guide brands through the myriad of sampling channels and products available so whether it’s mass face to face sampling, in offices, digitally, at home or just a strategic framework that you are after, we can provide a blend of tactics to fulfil both brand and sales objectives.

Retail.

With many clients now focused on activating in channels more closely associated with a sale, our heavyweight retail experience closes the loop on a typical shopper journey by encompassing the moment of truth in store. Be it prize promotions, shopper toolkits, key visual creation, path-to-purchase communications, category strategy, B2B campaigns or Amazon optimisation, our goal is to create forward-thinking retail experiences that deliver demonstrable brand value. We aim to make ‘retail fail’ a thing of the past for ambitious brands looking to thrive is an ever-competitive landscape and believe our streamlined team is perfectly placed to do this.

Foresight.

Knowing what will keep a brand bright, exciting, and vital means we need to keep one step ahead of the curve. Our thought leadership hub, The Futures Lab, helps us to understand the marketing trends of tomorrow. It’s also the origin of strategies and methodologies which have created over 65 award-winning campaigns. 

Rigour.

Creativity is nothing without results. And we know that commissioning bold concepts, capable of changing minds, requires reassurance that it’s the right thing to do. 

Data, insights, and research precedes every campaign we do, and our proprietary measurement tool, EMR, gives us a decade of campaign performance metrics. Which is why we’re proud to have been recognised as industry-leading by brands like The Economist, Coca-Cola, and Molson Coors. 

Trust.

We believe brand experience is inherently more varied than other forms of marketing. No formula, no template, no cookie-cutter approach – and often no precedent. 

That’s why, Sense places trust at the heart of its business – grounded in teamwork between our people and yours. Our processes are efficient, our senior team stay involved and our partnership mentality had helped us sustain powerful client relationships, some lasting over 10 years.