In today’s demanding business climate, publishers are scrambling to boost and diversify revenue. Their primary focus? Subscriptions.
The task seems simple: Convince readers to pay a small fee for content they read. But publishers face a daunting challenge. Readers accustomed to free content may be reluctant to accept a sudden price tag. A paywall, publishers fear, will drive away existing audiences, in turn cutting into valuable ad revenue.
Still, 79% of publishers say that subscriptions are a pressing revenue priority this year. Amid these challenges, how can publishers emerge victorious? It comes down to personalization. By taking the time to understand your readers on a segment-by-segment basis—their unique content preferences, as well as demographic differentiators like income and location—you can build a loyal paid subscriber base. Ultimately, the best strategy lies at the intersection of three factors: the right product, the right price, and the right experience.
Build a product that speaks for itself
Sometimes, one of the most important questions is also the simplest. What do you bring to the table? But perhaps there’s an even better question: What sets your content apart?
The answers, of course, depend on a multitude of factors. You’re offering something, but who’s taking it? Who is your audience, exactly? What do they value? And in a sea of free content, what makes your product irresistible?
By continually optimizing your product based on reader preferences and feedback, you can ensure you’re creating high-quality content your audience will love—and, in time, gladly pay for. Tailoring your offerings to your audience can help you build even better products over time, complete with new benefits and features that drive engagement and ad revenue. It also provides a clear foundation for the rest of your subscription strategy.
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Optimize your pricing strategy
Most publishers know that pricing is critical. After all, for many consumers, an overpriced subscription isn’t just a turn-off—it’s a dealbreaker. But arriving at the right price can be a nebulous process, especially if you’ve never launched a paywall. How can publishers set a price that’s both profitable and attractive to potential customers?
- Let the research guide you
Conducting thorough research is a tried-and-true approach. Consider asking your readers directly what they’re willing to pay. A simple survey can reveal the effectiveness of different price points, guiding you toward the perfect number.
Technology can also help you fine-tune your strategy and develop reliable revenue estimates. By turning to machine learning algorithms, for example, you can gather a statistically significant reader sample and A/B-test a handful of price points.
- Establish meaningful thresholds
With the right benchmarks, pricing becomes much simpler. What’s the minimum you’re willing to charge? What about the maximum? Should you gravitate toward a certain end, or determine a healthy compromise?
Effective marketing is largely psychological. When setting your baseline price, consider how much your readers might be willing to pay for your offering. Clearly categorizing your content as a “premium” product can help you justify a higher price tag.
On the other end of the pricing spectrum, many publishers make the mistake of relying too heavily on competitor pricing. While they provide valuable context, competitors should never fully inform your pricing strategy. After all, many of them (especially those with years of paywall experience) have optimized their subscription models over time, gradually raising their prices along the way. Though you might deliver standout content, a somewhat risk-averse approach can come in handy—especially if you’re just starting out.
Create an unforgettable experience
At the end of the day, your readers remember experiences. Your product’s features and pricing, while important, are ultimately part of a bigger, less methodical picture. By prioritizing your audience’s vantage point, you can create meaningful experiences that ultimately boost conversion rates. Every part of the user experience matters, whether it’s a first impression or a personalized message on social media.
Consider the subscriber journey unique to your audience. As unfamiliar users begin to explore your product, you might begin offering personalized content recommendations. At some point, some readers may turn their ad blockers off, while others may offer valuable information that can further drive personalization. As you continue to provide a better experience, page views, on-site time, and conversions will increase.
Dive headfirst into the era of subscriptions
Amid rapid global change and digitization, the era of subscription models is only just beginning. Converting existing readers into paid subscribers is far from easy—which is why the right tools and strategies are crucial to building a positive, personalized user experience. At the intersection of product, pricing, and experience, publishers can forge meaningful long-term relationships that can win over enthusiastic and reluctant readers alike.