Digital-First Marketing Model a Pivot by HBR
A synopsis of Tony Silber's article on Forbes
What Drove the Change in Approach?
Harvard Business Review's (HBR) direct mail subscription efforts were falling below the desired results, and outside lists were becoming less effective. The upcoming pivot was not surprising as HBR focuses on leadership, organizational change, efficiency and strategy and as Tony Silber points out "The brand was just practicing what it preaches." HBR moved to a digital-first marketing strategy utilizing paid social, search, and content marketing to deliver the desired results.
Marketing:
Direct mail had been driving a higher cost-per-acquisition (CPA), whereas digital offered a lower CPA and faster feedback on campaign performance and more scalable campaigns.
HBR focuses its model for customer acquisition by leading with content and focusing on customer and channel data. HBR has identified that engagement with content is a positive indicator of future subscribers. Thus paid social is used to retarget website visitors and email marketing yo registered visitors and those who have abandoned subscriptions.
Measuring Success:
CPA: which allows for comparison across digital and direct mail.
CPM: represents media costs for paid campaigns
Return on Ad Spend (ROAS): increase business return on each dollar spent on advertising.
What Were the Results?
Paid circulation has grown by 11.8% and subscriptions have increased by 9.5% in one year. these increased growth rates have been achieved while keeping customer acquisition costs at a more manageable level. Direct mail CPA was $227 and now paid social was $111; conversion rates were up 117% when comparing digital to direct mail. Importantly existing customers are downloading and subscriber-only content and tools at high rates. Even more vital HBR has maintained their premium pricing $99: domestic and $169: international during the switch from print to digital marketing.
Harvard Business Review's (HBR) direct mail subscription efforts were falling below the desired results, and outside lists were becoming less effective. The upcoming pivot was not surprising as HBR focuses on leadership, organizational change, efficiency and strategy and as Tony Silber points out "The brand was just practicing what it preaches." HBR moved to a digital-first marketing strategy utilizing paid social, search, and content marketing to deliver the desired results.
Marketing:
Direct mail had been driving a higher cost-per-acquisition (CPA), whereas digital offered a lower CPA and faster feedback on campaign performance and more scalable campaigns.
HBR focuses its model for customer acquisition by leading with content and focusing on customer and channel data. HBR has identified that engagement with content is a positive indicator of future subscribers. Thus paid social is used to retarget website visitors and email marketing yo registered visitors and those who have abandoned subscriptions.
Measuring Success:
CPA: which allows for comparison across digital and direct mail.
CPM: represents media costs for paid campaigns
Return on Ad Spend (ROAS): increase business return on each dollar spent on advertising.
What Were the Results?
Paid circulation has grown by 11.8% and subscriptions have increased by 9.5% in one year. these increased growth rates have been achieved while keeping customer acquisition costs at a more manageable level. Direct mail CPA was $227 and now paid social was $111; conversion rates were up 117% when comparing digital to direct mail. Importantly existing customers are downloading and subscriber-only content and tools at high rates. Even more vital HBR has maintained their premium pricing $99: domestic and $169: international during the switch from print to digital marketing.
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