DTC Brands and Publishers Are Alike in Their Love of Lifetime Value

quotThey are very very similarquot said panelist Mike Schanbacher director of growth marketing for DTC toothbrush company Quip who previously managed media strategy at The New York Times At Quip quotwe39re technically selling consumer packaged goods but we have to think about things like lifetime customer value from a subscription perspectivequotDuring the event hosted by Direct Marketing Club of New York DMCNY and the Media ampamp Content Marketing Association MCMA Schanbacher and the other panelists explored how this profitable model will shake up the future of marketing and advertising amp8212 not just in the magazine and CPG industries but also among any businesses looking to harness the datadriven benefits of the directtoconsumer and subscription modelsOne area of overlap between DTC brands and publishers that applies to other industries is a sense of urgency to meet customers39 everchanging demands and expectations Tammy Berentson who previously headed consumer marketing at People magazine pointed out that since joining online grocer FreshDirect as its chief marketing officer the pace of her work has changed amp8212 though not in the way she expectedquotPeople I thought moved really quicklyquot Berentson explained quotNews would keep changing and you had to keep on top of it it was a weekly magazine and minutebyminute website and I thought I was in the fast lane Then I moved over to avocadosamp8230quot Even the frantic pace of People39s online news world didn39t compare to the speed that FreshDirect needs to sell avocados and other groceries before their quotsellbyquot dateThat reality means management at FreshDirect is structured to take action quotThere are fewer people to present toquot Berentson explained quotWhen you have an idea that is going to move more bananas you better goquot Berentson wondered aloud how a similar approach would have fared at PeopleConsidering the approach that Trust Media Brands takes not only to generate magazine subscriptions but also sell its DTC products such as books and videos an agile approach like FreshDirect39s also works well for publishing companiesquotWhat39s interesting at Trusted Media Brandsquot said Alec Casey chief marketing officer of the media company which publishes service magazines such as Reader39s Digest Family Handyman and A Taste of Home quotis we39ve actually been developing DTC products for decades now We started as a magazine company that uses magazines as sort of a leadgen toolamp8230quot Once someone subscribes the company quickly entices them to purchase books and then music videos subscription boxes and other items quotAnd the margins get higher and higher the further down the funnel you goquot he added This demonstrates the profitable connection between publishing and DTCs that use a subscription modelEven so Casey felt it was important to draw a distinction between subscription and membership quotWe39ve been telling our editors amp8230 they need to stop thinking about just content factors and start thinking about how the content they produce creates communityquot he said quotCommunity is this sort of nebulous thing that we talk about but it39s really the stickiness of your content And it39s why we nodded our heads when we talked about membership versus subscription amp8212 because membership means you39re part of a group amp8230 and a subscription is just a productquotPanel cohost Christopher Cotnoir TRG Media president and The Rothkopf Group executive vice president concurred The company had launched a podcast that was growing successfully Cotnoir said so CEO David Rothkopf asked him quotHow do we build a business around itquot Cotnoir39s answer he noted was to build on its community quotWe knew we had a pretty loyal audience by the number of downloads the podcast was gettingquot Cotnoir said quotThe question was what was the best way to monetize thatquotTogether they explored how community could positively impact their bottom line Cotnoir elaborated quotMembership is not just this idea of community but it39s also engagementamp8230 We39ve tried a lot of different things and ultimately it comes down to have we engaged with listeners on social media What kinds of tools do we give to them to engage with each otherquotThe customercentricity needed to create community is integral to how Forbes Media is connecting with its subscribers and other readers quotThe thing that is most interesting for us amp8230 is a focus on very customercentric marketingquot said Nina La France senior vice president consumer marketing and business development at Forbes MediaShe also reminded attendees not to get too personal quotThere39s a cookieapocalypse comingquot La France said Many publishers and DTC companies alike use cookies for targeting and retargeting visitors to drive memberships and subscriptions Despite the challenges that a cookieless marketing landscape will present LaFrance remained positive and noted that Forbes gives customercentricity and data privacy their due consideration as it evolves its business to better suit the future landscapeWhether building a community or buying a toothbrush it39s clear that the subscription business model amp8212 no matter the industry amp8212 is creating unique opportunities brands and marketers to engage with customers in new and profitable ways These insightful industry experts are just a few who can speak to the subscription model39s diverse and adaptive natureClick the social buttons to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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DTC Brands and Publishers Are Alike in Their Love of Lifetime Value

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Hayley Virgil

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DTC Brands and Publishers Are Alike in Their Love of Lifetime Value

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