CRM to the Rescue

Due to declining readership and revenue, many media companies have been struggling to stay relevant and ultimately, stay in the game. With so many eyeballs gravitating to the Web, many print publications have lost their fan base and have been forced to build engaging websites with fresh content. As a result, Time Warner, Disney and other media companies are experimenting with customer relationship management programs in an effort to retain their relevance. However, traditional media lag behind their online counterparts in collecting customer data.

Media companies are trying to figure out the best strategy to keep their consumers happy. They are also trying to package the content in a way that will provide the most value to their loyal customers. “Newspapers, magazines and media companies in general have to start thinking about what con­tent they reserve and what they don't,” said David Rosen, SVP at San Francisco-based Loyalty Lab, a provider of on-demand customer loyalty technology. “By asking people to sign up for digital con­tent, for example, and to be part of the brand, it creates a deeper sense of engagement. That then becomes a marketing platform as opposed to an advertising plat­form, which is what media com­panies have now.”

Creating a relationship with its best cusomters is a strategy that rings true for Disney, the world renound company that children and even adults adore. According to a recent article in the DM news, Disney has launched a comprehensive membership program called D23 that includes a subscription to a new quarterly publication, offers to attend special events and purchase exclusive merchandise, access to exclusive online content and a membership certificate and card. Additionally, the Disney.com/D23 fan site will feature Disney news, exclusive feature stories, blogs, a collectibles boutique, special event information, and other content. A statement form the company explains that D23 refers to the year 1923, which is when Walt Disney opened his studio in Hollywood. The program is the first official community for Disney fans and a one-year membership costs $74.99 according to a statement from the company.

The driving reason why companies are willing to invest in these loyalty programs is because they want to continue the conversation with their loyal consumers. Ultimately, subscribers have to feel that a relationship with the brand is really worth paying for. Rosen agrees and says, “Here's a case where a media company is taking a lesson from the direct marketing industry. By providing structured value [to its cus­tomers], Disney will ultimately see higher levels of conversion and engagement across the entire franchise.” With this sophisticated communications program and community, Disney is able to understand what their customers are willing to pay for and reward with items that are of interest to them. As the infamous character Donald Duck would say, "Nothin' to it!"