Membership Conversion: The Post and Courier Story: Year 1

Steve WagenlanderPresident and Publisher

Summerville CommunicationsCorporate Director of Audience Development

Evening Post Publishing CompanyCharleston, SC

swagenlander@postandcourier.com(843)937-5746

Meet Someone New Evening Post Industries and The Post and Courier Setting The Tone Why Membership Conversion / Implementation Marketing Review Member Events 12 Month Update Questions

Agenda

Meet Someone New

Evening Post Industries15 Television Stations - Cordilerra White Oak Forestry13 Newspapers – EPPNG Informed Interactive – digital Clear Night Group- marketing

Located in beautiful Charleston, SC 90,000 circulation daily newspaper 65,000 home delivery, 25,000 single copy www.postandcourier.com Charleston’s largest website Approximately 350 employees Privately owned…….YEAH!

The Post and Courier

This Should Set the Tone!

“We are doing this to make money” – Bill Hawkins,

Publisher

Why Membership Conversion?

Post and Courier Circulation Revenue

Year 2013 * 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Revenue per Paid Copy $.5308 $ .4917 $ .4385 $ .3899 $ .3249 $ .2701 $ .2465 $ .2368 $ .2459 $ .2436 $ .2658 $ .2729 $ .2712

* Budget

Circulation Revenue % of Total(we take discounts as a contra-revenue)

Year20132012 201120102009200820072006200520042003200220012000

% 35.9% 30.5% 28.8% 24.6% 21.7% 15.6% 12.3% 11.4% 11.8% 13.0% 15.0% 16.0% 16.2% 15.7%

* Budget

Selected a cross departmental committee Developed strategies for benefits, meter settings,

and pricing Researched and selected a provider Implemented advanced promotional campaigns Fully trained employees “Over- prepared” for launch Set goals for conversions, digital only revenue,

and digital only members. Tracked all critical data points on a daily basis.

Key Launch Initiatives

The Post and Courier chose to Bundle in order to maximize incremental revenue.

Incremental Pricing versus Bundling

Guide contained FAQ’s, bundle grid and hotline details

Every employee was required to attend a training session

Flew Press + in to conduct training

Demonstrated high level of commitment

Member Hotline Extension 5731

Chose Press + as our provider Set meter @ 5 free stories per month for

non-members. Everything is metered except home page, section fronts and classified verticals

Designed Welcome and Stop “Light Boxes”

The Post and Courier Meter

Welcome Message

Stop Message

Two Phases – Launch and Ongoing Mulit-Channel – Print, Online, Email, Social, TV, Radio,

Out of Home Volume, Volume, Volume….especially in Launch phase Messaging

Launch – emphasized the value of the bundle aimed at educating consumer about the change to membership

Ongoing – shifted consumer focus from education to generating new member and conversions. Introduced testimonials from both consumers and advertisers.

Marketing Review

Launch Phase

Member only discounts at over 200 local and online retail locations

Mobile, online and hard copy coupons can be accessed by members

Over 80,000 page views since launch Over 5,000 active member accounts since

launch

Membership Rewards

Ongoing Marketing Phase

Email sent to members that have not activated Press + benefits

19% open rate32% click thru rate

Rack Card

Determine Someone’s Age•Multiply your shoe size X 2 (whole number)•Add 5 to your answer•Multiply your new answer X 50•Add 1764 to your new answer•Subtract the year of your birth (1969)•The last two digits of your new answer should be your age at your birthday in 2014 and the first digit(s) should be your shoe size

Television Commercial

Member Events

Post and Courier Advantage Members are cordially invited to attend a special members-only production of The Wizard of Oz at 7:45 p.m. on Aug. 18, performed by the Flowertown Players at the Historic J ames F. Dean Theatre, 133 South Main St.

Summerville, S.C.

Tickets are limited and will be distributed on a first-come, first-served basis. Tickets may not be redeemed for cash or other considerations.

Members may bring up to three guests. You will be required provide the names of all of your guests when making your reservations.

As a courtesy to the performers, no one will be permitted into the theatre after 7:45 p.m. Guests are encouraged to arrive early.

You must be a Post and Courier Advantage Member to receive tickets. Advantage membership is free to anyone who receives print delivery of The Post and Courier or has a digital subscription but you must activate your membership. If you are not a member, CLICK HERE to join today.

To reserve tickets, please call 937-4831 or email crandall@postandcourier.com. Give your name, Post and Courier delivery address and phone number. Please also provide the number of people in your party and their names. You will receive a written confirmation. Tickets will be mailed to your Post and Courier delivery address unless otherwise requested.

Employees and independent contractors of the Evening Post Publishing Co., its subsidiaries and members of their immediate family are not eligible.

Post and Courier Advantage Members You're invited to a free screening of

Post and Courier Advantage Members are cordially invited to attend a screening of "Star Trek Into Darkness" on May 23 at the Northwoods Stadium Cinema, 2181 Northwoods Blvd.,

North Charleston.

Tickets are limited and will be distributed on a first-come, first-served basis. Tickets may not be redeemed for cash or other considerations.

Members may bring up to three guests, for a total of 4 per membership account. You will be required provide the names of all of your guests when making your reservations. Each guest will receive a complimentary snack size drink, candy and popcorn.

Guests may arrive between 5:30 p.m. and 6:15 p.m. As a courtesy to the other guests, no one will be permitted to this show after 6:15 p.m. Guests are encouraged to arrive early. The show will begin at 6:30 p.m.

You must be a Post and Courier Advantage Member to receive tickets. Advantage membership is free to anyone who receives print delivery of The Post and Courier or has a digital subscription but you must activate your membership. If you are not a member, CLICK HERE to join today.

To reserve tickets, please email crandall@postandcourier.com, Provide the following information: your name, Post and Courier

delivery address and phone number. Please also provide the number of people in your party and their names.

• 20 Food Trucks / 7 Bands• 5,000 Estimated Attendance• Free Admission• Held in Post and Courier

Parking Lot• Members had special tent

where they could get a free copy of a Post and Courier book of their choice

• Generated new revenue stream for company

Food Truck Rode0November 10, 2012

First Membership Event Video

Recent Member Event Video

Storm Video

1 Year Update

Monthly Page Views

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

7,714,174

6,664,760

5,723,9726,083,483

6,928,0576,403,215

6,987,0556,543,3876,387,317

7,386,909

6,607,2826,764,130

7,370,488

Monthly Unique Visitors

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-1

2

Dec-12

Jan-13

Feb-13

Mar-1

3

Apr-13

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

940,303

895,331

786,914812,975

911,440883,082

1,027,589

924,269

795,748

984,801

938,554939,341976,342

Conversions

Apr-1

2

May-12

Jun-12

Jul-12

Aug-1

2

Sep-1

2

Oct-12

Nov-1

2

Dec-12

Jan-13

Feb-1

3

Mar-1

3

Apr-1

30

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0

4,164

6,6407,919

8,7999,514

10,21010,74711,25811,744

12,43813,146

13,801

New Digital Only Memberships

Apr-12May-12 Jun-12 Jul-12 Aug-12Sep-12 Oct-12 Nov-12Dec-12 Jan-13 Feb-13Mar-13 Apr-130

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0

438

684825

9401,071

1,1831,267

1,3461,437

1,5821,692

1,800

Of the 1,800 digital only subscriptions we sold in the first year, just over 1,200 (67%) live within our home delivery footprint.

Interesting Fact

Annual Digital Revenue Growth

Apr-1

2

May-12

Jun-12

Jul-12

Aug-1

2

Sep-1

2

Oct-12

Nov-1

2

Dec-12

Jan-13

Feb-1

3

Mar-1

3

Apr-1

3$0

$50,000

$100,000

$150,000

$200,000

$250,000

$0

$50,536

$78,649$94,645

$107,668$122,464

$135,127$144,598

$153,469$167,612

$184,277$196,826

$212,135

May 1, 2012 – April 30, 2013

May 1, 2011 – April 30, 2012

Print 13,110 14,191Digital 1,800 0Total 14,910 14,191

Total Acquisition Since Conversion

Through 12 months of having our website metered, only 8 members have cancelled their full memberships to become digital only members.

Stopping Print toTake Digital Only?

$99 Members .7%$10 Members 5.6%All Digital Members 4.1%

Digital Only Member Churn Rates

On May 1, to more accurately reflect the value the comprehensive membership model, we established pricing for all memberships. On average, the new valuations were 14.6% higher than those valuations of print only subscriptions.

The financial result produced by these new valuations was over a $100,000 increase per month, or $1,200,000 annually, in Circulation revenue.

Of course, as a result of 14.6% increase in valuations we expected to lose members. We budgeted to lose 5.6% of our home delivery volume beginning May 1. Through January 2013, losses have been on average about 40% less than expected.

Full Membership Price Increase

We budgeted to lose 5.6% of our home delivery volume as a result of the membership valuations.

After 12 months, we had actually only lost 4.1%.

While no one likes losing volume, performing better than budget had a profound financial impact.

Better than Expected Home Delivery Volume Performance

As a result of better-than-budgeted print volume performance after implementing the membership model, Audience Development has produced even more circulation revenue than budgeted since launch.

May 1, 2012 through April 30, 2013,Circulation

Revenue was $547,259 OVER BUDGET!

From May 1, 2012 through April 30, 2013, Circulation revenue was up 5.9%.

Better than Budget

• Budgeted Circulation Revenue Increase: $1,200, 000• OverBudget Revenue: $ 547,259• Digital Only Membership Revenue: $ 212, 135

TOTAL: $1,959,394

Year 1 Membership Impact

Questions?