Measuring Performance

& Impact:

Developing Key Metrics Using

Circulation Transactional Data

Traditional Retention Mgmt

Retention Management

Monitoring Past to Plan Future

Look Backwards, Lag to Analysis

Comparative Benchmarking

Source/Channel

Offer/Term/Price

Taking Action

Resource Shifting/Allocation Start Pressure

Monitoring, Interventional Action

Relationship Management

Customer Touch Points

Acquisition Practices

Billing Processes, Contact Management

Stop Savers, Grace Management

Re-Acquisition

Whole Picture one Subscriber at a Time

Data Flows - Magnitude

Measurement Applications

Loyalty/Tenure – How to Measure ?

Grace Management – Grace Days Profile

Step Rating – Does it work ?

Multiple Start/Stops – Big Problem ?

Loyalty/Tenure

What is a reasonable definition of “loyalty”?

How do we “see” it and put into action?

Can we “model” it with external tools?

Subscriber Tenure – Longevity

Market Profile/Coverage

0

50,000

100,000

150,000

200,000

Subs Non Subs

Never

Past

Current

Subscriber Tenure

Subscriber Tenure

0

20,000

40,000

60,000

80,000

100,000

120,000

Sub Past Sub Never

< 13 Weeks

> 13 Weeks

> 26 Weeks

> 52 Weeks

> 2 Years

Tracking Tenure over Time

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10

Under 6 Months

6 to 12 Months

12+ Months

Impact – Shifting Resources

0

5,000

10,000

15,000

20,000

25,000

2002 2003 2004

0%

5%

10%

15%

20%

25%

30%

Starts

Churn

Grace Policies – Measurement

Variable Grace Practices

Past Payment History, Segment Based

Developing an Aggregate Profile/Exposure

Monitoring over time

Pay Up Rates/Collections by Segment

Policy Change/Program Execution

Grace Days Profile

Active Subscribers, Expire Date < TODAY, Publication

DAYSTO (Date1, Date2)

IF(([Subscription.VF - Last Expire Date] < _TODAY) AND

(Subscription.Subscriber = "1" AND Subscription.ProductID = "PJS"),

DAYSTO([Subscription.VF - Last Expire Date], _TODAY), 0)

Grace Days Profile

Grace Profile over Time

0%

20%

40%

60%

80%

100%

Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8

GT 66 Days

42 to 66 Days

28 to 48 Days

14 to 28 Days

LT 14 Days

Pricing – Step Rates

Introductory Pricing, Increase at Renewal

Revenue & Discount Accounting

Measuring “Success”

What is their Subscriber Status ?

What Rate are they on ?

Is measuring “Retention” sufficient ?

Starts on Promo Rates

0

2,000

4,000

6,000

8,000

10,000

12,000

2005 2006 2007

10FOR10 50%Disc

P 13/10 P 16/13

P 19/13 P 8/6

P-APT

Where are they now ?

0%

20%

40%

60%

80%

100%

1/05 2/05 3/05 4/05 5/05 6/05 7/05 8/05 9/05 10/05 11/05 12/05 1/06 2/06 3/06 4/06 5/06 6/06 7/06 8/06 9/06 10/06 11/06 12/06 1/07 2/07 3/07 4/07 5/07 6/07 7/07

Past Subs

Subs Full Rate

Subs Other Rate

Multiple Starts/Stops

Is this a “big” problem ?

How do we measure ?

And then, what do we do about this?

White Flag Program

One time deal, last chance … yeah, right!

Starts vs. Stops Counts

Stops

Starts 0 1 2 3 4+

1 38,669 86,191 5,416 3,434 9,901

2 5,267 13,659 1,004 1,116

3 - 2,038 3,954 649

4+ 861 2,775

Measuring Performance

Derive Key Measures Internally

Business Practices/Know the Rules

Use Your Transactional Data

Build Metrics One Subscriber at a Time

Consider Aggregate Profiles

Understand Key Group Profiles