Transactional technology that enables transactional customer relationship is the base of the digital publishing ecosystem for the past two decades. This is how it works- attracting a reader, showing them a headline or a few words or an article, then coming up with a paywall to buy a short subscription package and moving on.
Every potential subscriber is treated as any other e-commerce customer with the same conversion funnel. We have built complex tech- stacks to support this approach and the ad-focused tools and subscription products remain unchanged and operational at certain levels in the digital customer journey. Till now, the flexibility in the customer experience was never a question. The journey was straight, simple, and direct with a single focus -deliver content, monetize on it, and maintain engagement. However, this transactional approach no longer caters to commercial or customer needs.
Lately, people are accustomed to making their own choices- which product is suitable for them, opt for premium or family packages depending on their needs and likes. The growing subscription economy has altered the way a customer perceives their product and services.
A successful recurring relationship is built on personalization when a customer can choose the product or package right for them and leave the rest. Jim Barksdale rightly said, “There are only two ways to make money in business. One is to bundle, the other is to unbundle.”
Businesses should be able to answer important questions like which one to pick, where, and how.
Presently, to answer the questions, publishers are enforced to hack the existing transactional tools and development teams are still investing their efforts on the complex system instead of building new products to grow revenue. Marketing teams want to explore with fine-tune new customers but are hindered by the same old inflexible technology.
Ultimately, publishers suffer badly due to lack of innovation, low ad -yields, complex technology, high costs, and no personalization for consumers. In simple words, the industry’s technology is unfit and outdated and it is worrisome considering the future is about dynamic products and personalization and automation. By relying on transactional technology with all limitations, publishers are at risk, and growth is restricted in this new economy.
With COVID-19, the subscription economy has changed in six weeks which could have taken longer otherwise. The UK’s largest subscription site, iSubscribe witnessed its digital magazine subscription jump 400 % jump in volume. The traffic to the Financial Times website saw a jump of 250% Y-o-Y in the past month. There is an all-time high in the industry conversion rate.
But the question now is, will this continue post coronavirus crisis when the audiences find themselves with subscriptions that are not required?
Commercial teams need to set up a highly personalized customer journey without reaching to their technical team for help each time. They should independently learn, test, and change a range of products, packages, and revenue models.
This implies publishers should not rely on years of coding experience to handle but need integration of tools across the customer journey- offering personalized outcomes to every potential subscriber. Publishers need tools that don’t require coding to ensure that every client, prospect, and visitor is handled by the organization and the power to build change is in the hands of the specialists who know the market.
The world’s largest publications are using this platform to get ahead of the curve and be ready to steal the thunder once the markets settle -which might not take too long.
