Following our previous analysis of the different subscription models that are being implemented in the media sector, in this new issue of the Dossier evoca entitled "Subscriptions, the new black we wanted to delve deeper into the implications for companies from an operational, organisational and cultural point of view. For this, the best methodology is the conversion funnel.
It must be borne in mind that in any transformation, such as the change from an advertising model to a subscription model, the impact affects each and every area of the organisation and, therefore, also the indicators and metrics that allow the success or failure of the actions carried out to be evaluated.
Establishing a subscription strategy and aligning the organisation accordingly requires a deep understanding of user behaviour.
Media are transitioning to a business model increasingly focused on direct audience revenue, whether through subscriptions, membership or micro-payments. But before committing to a subscription revenue strategy, publishers should estimate the potential number of subscribers among their current and future audience. The potential subscriber base will be determined by the nature of their current audience, product offering, pricing strategy and alternative products on the market.
While the success of subscription models is not guaranteed for any medium, engagement with brands, underpinned by relevant content for each audience and combined with the right user experience, are good measures to start exploring new revenue streams. Strategy is a fundamental part of success. The companies that are achieving the best results are characterised by having a clear and decisive strategy and roadmap that involves the entire organisation. And all this without forgetting the fundamental matter on which the media business pivots: information and the creation of stories that interest their readers.
In short, it is necessary to undertake a profound transformation of the organisation with the aim of becoming a user-oriented company, eliminating silos and promoting multidisciplinary profiles and teams. The transformation of any organisation requires changing its processes and, more importantly, its business culture.
Pepe Cerezo
Director of Evoca