The New B-To-B Realties: Number-Crunchers Need Not Apply

Circulation Management, Sept, 2001 by Karlene Lukovitz

What's really going on in B-to-B circulation departments today? Six pros discuss the source crunch, the promise and limitations of the Internet, new demands on staff and circulators' creativity, and the rewards of leveraging everything you've got.

The angst-inducing issues surrounding consumer marketing get plenty of play these days, even in the general media. Meanwhile, B-to-B circulators quietly go about tackling a host of challenges that have radically altered the ground rules within their own arena.

Rampant market consolidation, dwindling poois of targeted prospects, diving direct mail efficiencies, increasing difficulty in attracting and keeping promising talent, and the complexities of integrating traditional and nontraditional media, creating and employing privacy-conscious databases and navigating the shifting internal politics created by corporate consolidation and the Internet...these are just some of the realities of today's B-to-B circulation environment. And the juggling act hasn't been made any easier by the economic pressures resulting from the current advertising downturn.

During this year's Circulation Management Conference & Expo, six circulation executives discussed their current strategies and the challenges and rewards of their expanding roles.

Here are highlights of that panel discussion, which was moderated by Gloria Adams, circulation director of PennWell's Advanced Technology Division.

THE PANELISTS:

* Maxx MacConnachie: Recently named director, circulation for Crain Communications; formerly senior circulation director, Hanley-Wood LLC

* Maxine Minar: VP, operations and general manager, Post Newsweek Tech Media Group

* Eric Rutter: VP, controlled circulation, Cahners Business Information

* Ken Turtoro: Most recently circulation director, Medical Economics Co.

* Joanne Wheatley: VP, circulation, Bill Communications, Inc.

PLUGGING INTO THE INTERNET

Gloria Adams: The Internet has had a major impact on the way that many of us acquire and renew subscribers. So let's start by discussing what you see as the advantages and limitations of this medium within your own operations.

Ken Turtoro: In my experience, the extent of your ability to leverage the Internet is contingent first on the market and the segments being served. And most of the circulators I've talked with about the Internet have reported having the same experience.

For instance, within the medical market, doctors by and large are not in the forefront of Internet usage, and there are challenges associated with securing and being sensitive about using their email addresses. The American Medical Association just recently began collecting email addresses from their membership, and they have not yet made them available for rental. Understandably, they're concerned about privacy. In that kind of scenario, a publisher needs to work closely with the association or organization over time to demonstrate that privacy issues can be effectively addressed.

In other segments, such as pharmacies and veterinary medicine, permission-based email addresses are more readily obtainable. Medical Economics has had a lot of success in integrating broadcast email into the requalification series to subscribers whose email addresses are on the file. In fact, email is now the first effort. On average, it pulls about a 40 percent response from the deliverable addresses.

That said, email is going to remain a complementary source, in most cases. It won't completely replace wraps, direct mail, or telemarketing. But it's definitely an important tool. It should help us reach our goals more cost-efficiently.

Eric Rutter: From a circulation development perspective, the Internet has certainly come along at the right time. Direct mail response rates have dropped precipitously in many markets, which naturally drives up cost-per-order. I agree that the Internet and email can't replace traditional sources, but it's been a real boon for us.

The key is using these sources strategically and intelligently. I'm sure that we all have multiple Web sites, and it doesn't take a genius to realize that these represent important opportunities to attract new print subscribers and renew existing ones. But in many cases, circulators have to fight to get subscription buttons on the sites. We're competing for that real estate with paid ad banners, other email newsletter offers and so forth. So we have to keep driving home the real, bottom-line benefits of having those subscription areas on the sites. If necessary, we have to push the issue.

We're also partnering with complementary outside Web sites. And we use some of the online agents offering B-to-B titles, including Freebizmag.com and Tradepub.com. In addition, in some industries, there are vertical online subscription services. For instance, for our building and construction group, we're trying to drive traffic by using Freeconstructionmagazines.com, a nationwide index run by an outside vendor.

These sources add up. I'd strongly recommend that circulators test all of the channels available for building low-cost, Net-generated subscriptions.