After the analysis we carried out previously on the different subscription models being implemented in the media sector, in this latest dossier by Evoca entitled "Subscriptions, the new black," we wanted to delve into the implications they have on companies from the operational, organisational and cultural points of view. For this the best methodology to employ is the conversion funnel.
Bear in mind that in any transformation, such as passing over from an advertising model to that of subscriptions, the impact affects each and every one of the organisation's areas, therefore also affecting the indicators and metrics that allow us to evaluate the success or failure of the actions carried out.
Establishing a subscription strategy and aligning the organisation in this sense requires a profound knowledge of the user behaviour.
The media is in transition towards a business model increasingly focused on direct revenue from the audience, either through subscription, membership or micro-payments. But before committing to a subscription revenue strategy, content publishers must estimate the potential number of subscribers between their current and future audience. The potential subscriber base will be determined by the nature of your current audience, product offering, pricing strategy and alternative products in the market.
While the success of subscription models is not guaranteed for all media, the commitment to brands, based on relevant content for each audience and combined with a correct user experience, is a good way to start exploring new revenue streams. Strategy is a fundamental part of success. The companies that achieve the best results are characterized by having a strategy and a clear and determined road map that concerns the entire organisation. All this, without forgetting the fundamental axis around which the media business pivots: information and the creation of stories that interest its audience.
In short, we must undertake a deep transformation of the organisation with the aim of becoming a user-oriented company by eliminating silos and enhancing profiles and multidisciplinary teams. The transformation of any organisation requires changing its processes, and more importantly, its business culture.
Pepe Cerezo
Director of Evoca