Don't Just Make the Sale, Collect the Money! 

The Migration from Billed to Prepaid Orders

For as long as I can remember, the trend has been to generate as many discounted subscriptions as possible for a quick circulation fix.  Circulation executives in that constant battle of churn vs. growth, week in and week out.  Trying to stay ahead of what happened a year ago, today.  It's an easy concept that newspapers make their money on advertisers, and the more subscribers, the more revenue generated.  That makes perfect sense.  But now that advertising revenue has slumped, that model of widget selling is changing too. 
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First business owner: Our widgets are selling so well, I can hardly keep them in stock.  I sell 100 a week, every week!”

Second business owner:  Wow, that's great.  What's your secret?”

First business owner:  “Well I buy them for $5, and then I turn around and sell them for $3.”
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Few know the pain of dwindling newspaper revenue more than a Circulation Director.  Newspapers are working hard to have circulation cover their own expenses.  They believe EZPay and prepaid orders must pave the way.

Currently we are seeing a dramatic change in the paradigm of how newspapers look at circulation and subscription acquisition via telemarketing.  Many have done away with discounts and some have changed to full price subscriptions.  There are also those who are being forced to take the 100% Prepaid or EZPay business model.  All are seriously looking at how to implement changes to positively affect the bottom line.

The migration from billed orders to prepaid orders is something I have dreaded for quite some time.  I knew it was coming; the question was when.  For many newspapers, the time is now.  I want to share with you some ideas that may make this change easier.  I don't know any tricks, and there are no gimmicks to make this work.  There are, however, a few processes I have found through trial and error, which help us generate more paid in advance orders.

I have implemented a three pronged approach that has been very successful at tipping the scales to the prepaid model.  In part one of this three part series, I'd like to give you some tips on how the newspaper can help make the transformation from billed telemarketing orders to prepaid, more successful.

The biggest challenge in generating 100% EZPay and prepaid orders is cost.  It's simple math; it costs more to generate an EZPay or prepaid order than a billed order.  Here's a look at the numbers:  Telemarketing puts in 10 hours, and generates 10 prepaid orders and 10 billed.  If your newspaper requires 100% prepaid, those 10 customers that agreed to order, but refuse to give the financial information are now lost product.  This doubles the cost to produce the order by telemarketing, which doubles your CPO.  For most newspapers, this rate hike is too steep.

Let's focus on the 10 prospects that didn't want to give their credit card over the phone.  What could we do to change their minds?  

Here are a few things your newspaper can do to help instill customer confidence needed to tip the scales and get the customer to prepay over the phone.  

1. Be sure to put your Newspaper Call Centers’ logo, name and direct phone number in the contact section of your newspapers web site.  Customers are very net savvy these days and most have access to the Internet.  It works!

2. When requiring prepayment, give the customer something in return for doing so.  Giving a free month, discount or a premium is an excellent way to reward the customer for giving their credit cards to a stranger over the phone.

3. Keep your EZPay and prepaid offers similar in price, always keeping the focus on EZPay.  If your prepay offer is better than your EZPay, it makes EZPay a hard sell.

4. Set up a partnership with your Newspaper Call Center and the door to door crew, allowing both to make a commission on the collection of a new subscription.  Ask telemarketing to schedule a soft collection of the payment by the door to door crew on a specified day of the week.  “We will have a representative doing collections on Tuesday and Wednesday of next week, could you have a check in the amount of $____  ready for them?”  You'll find this will lower your CPO from both vendors.

These suggestions can be implemented with little or no effort by the newspaper, and the results can make the difference between success and failure.  Even though there is no magic potion that will turn a billed order into a prepaid order, these suggestions will increase your chances for success.

Please stay tuned Part two: Don't just make the sale, collect the money!  I will share ideas a call center can utilize to help turn those billed prospects into prepaid customers.

Feel free to email me at Chris@NewspaperTelemarketing.com or call me at 530-591-8449 with any questions you might have, and I'd be happy to assist you in any way I can.  

Chris Howell
CEO, Sales and Marketing Director
Impact Marketing
NewspaperCallCenter.com
530-591-8449

Business is not down, it's different.  There's still PLENTY of opportunity –it's just different than before. You have to be ready to help, ready to serve, and ready to be your best. This will not only help others to survive, it will also ensure that you do.