A 'How-To' by group Research Director Amy Collins
Pulse Research studies help LCNI retain, grow ad revenue
By Amy Collins, Research Director
Landmark Community Newspapers, Inc.
NNA offers a member benefit with Pulse Research of Portland, Oregon
at attractive rates for web-based readership research. One national
group member, Landmark Community Newspapers of Shelbyville, Kentucky,
with 46 newspapers in 12 states, has had good results using the
low-cost research. I want to share our experiences with Pub Aux
readers in hopes that more NNA members can grow their businesses
using Pulse Research studies as a sales tool.
Why a Pulse Study
Imagine knowing with certainty how YOUR newspaper readers are spending
their money and reading your paper
what sections they are reading
what other media they also use
what products they plan to
buy
In fall of 2001, LCNI newspapers were given the chance to participate
in a joint project with NNA and Pulse Research that would accomplish
all of these goals, at a cost of less than $500 per newspaper. The
effect, so far, has been encouraging.
We have ad staff members at newspapers using research to sell that
previously used only their rate card and some demographics. We have
ad salespeople trained to overcome objections with specific pieces
of the research. And our advertisers are benefiting from obtaining
more information on their marketplace.
Success Stories
Grocery chain consolidation. A well-known grocery chain
changed their regional decision-making to a new office, requiring
all current providers to pitch the new location.
The Pulse data showed that our tri-weekly outlying a metro area
had loyal readers who relied on it for advertising information.
Our advertising manager coupled this data with knowledge of the
market, photos of the area's grocery stores (including competitors),
and most importantly, a sincere interest in the success of the
advertiser.
The result was greater than expected. While we feared a loss of
business, the result was reassuring: while the chain was cutting
budget from other newspapers, it increased spending with us by
over $30,000 because we had a convincing story to tell. The Pulse
data was an essential part of that.
Discount store closing. A national discounter made the decision
to close a store in one of our market areas. We hoped to retain
ad dollars by proving the worth of our customer base in the neighboring
area.
The Pulse findings detailed the discount and department stores
shopped by our readers. We were able to make the case that when
one of the store choices was eliminated, competitors would fill
the void unless action was taken to retain those customers.
We retained the business, replacing the ad dollars from the closing
store location with the neighboring location, from a company who
is not known for buying adjoining markets.
Components of Success
You may be saying, "It can't really be that easy!" The
truth is, we are still working on getting the full value of our
research investment. Here are a few barriers that your newspaper
may encounter and suggestions for overcoming them.
Training. If ad reps aren't used to selling with research,
it will take some time to get them up to speed. They need formal
training supported by role-playing and management feedback. The
goal should be to learn to think like the advertiser - and ask themselves
how that research adds a benefit to the advertiser's business (WIIFA,
or What's In It For the Advertiser).
How can the research contain an advertiser
benefit?
One way is to use the research to translate market potential for
his/her product into dollars. Even 3% of a reader base of 10,000
planning to buy a hot tub translates to 300 potential hot tub
buyers - and $600,000 in business if the average purchase is just
$2,000.
What is appropriate to present?
Some advertisers require more detail than others. Understanding
the advertiser's needs is crucial. Offering what's relevant means
a higher quality, more targeted and more meaningful presentation
of data.
The staff of Pulse Research offers training
materials as part of their menu of services.
Technology. If the ad staff lacks the ability to effectively
share the research in hard copy or electronic, then the investment
is wasted.
What is required?
A desktop computer. A computer shared by more than one
rep could be a first step, with individual computers as the investment
starts to pay for itself
Presentation software to be used by the ad representative,
such as PowerPoint, is a basic requirement. (Training in the software
can cost as little as $60.)
Printing in color helps the data jump from the page. Color
printers are more affordable than ever, and can also be shared
by multiple users.
What is optional?
A laptop computer to be used for live presentations to
advertisers.
Internet e-mail access would allow reps to send presentations
electronically, and to pull company logos from the Web for customizing
their work for each customer.
Tracking. Knowing how many calls are made with research is
an essential part of tracking return on the investment in research,
technology, and training.
At our company, tracking will be needed to allow us to roll research
down to the smallest of our weekly newspapers. Knowing that we've
reaped a 60-to-1 return in new business in one market leads us
to consider additional markets.
Affordable data from your readers on their shopping and media habits
is an essential part of advertising and editorial strategy. The
work being done by Pulse Research has helped Landmark Community
Newspapers as we strive to underscore the value of our products.
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