BNP's Racey: Wrapper-telemarketing combo boosts renewals

Folio: The Magazine for Magazine Management, Feb, 2002

When Lauren Racey, circulation manager for Business News Publishing Company (BNP), chose to test telemarketing as a renewal method for 10 of her company's 41 b-to-b publications this past summer, she expected limited success. Because renewal rates for several BNP titles were pretty high to begin with, she wasn't anticipating any major jumps. But an interactive messaging service provider, SoundBite, convinced her that telemarketing with a twist was worth a try. So she mailed renewal cover-wrapped issues to 100,000 readers whose subscriptions were expiring, then quickly sent each a pre-recorded, 30-second SoundBite voicemail reminding them to fill out the form on the cover wrap or to renew via a visit to their Web site.

The results were tremendous, says Racey. Overall rates went up significantly, she says. Average renewal response jumped from about 7 to 10 percent to around 10 to 12 percent--for an increase of about 40 percent overall. And the cost to test the process, she says, totaled only $0.08 per name, or just $800 for each magazine. "For us, it was great--and definitely worth the price," says Racey.

Interestingly enough, Racey adds, BNP has seen another unexpected yet pleasant benefit: Internet activity for the company's titles has skyrocketed.