Magazine
publishers in the UK have been using simple, single-worksheet, subscription
lifetime value models for many years (we've supplied over 2,000 copies of
our single-worksheet LTV model, for example). These models are easy to use
but there are inherent weaknesses in such a simple approach:
- Simple
lifetime value models support 12 month non-Direct subscriptions only
(which means 6, 24 and 36 month non-DD subs, and all Direct Debit subs,
aren't catered for)
- Each
worksheet requires separate data entry for promotion and service costs,
even though many costs are replicated across several or all acquisition
campaigns
- Subscription
volumes, revenues, costs and profits need to be exported from each lifetime
value worksheet and imported into a separate source ranking worksheet,
and this is time-consuming and error-prone
- Publishers end
up with tens or, in some cases, hundreds of Excel LTV worksheets (which
means it can be difficult to retrieve a specific lifetime value model)
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In
2003 we decided to develop The Weaver Subscription Lifetime Value Model.
We wanted to bring together LTV calculations from many subscription acquisition campaigns
into a single workbook and to link these LTV calculations with an integrated
source ranking table. This approach allows publishers to determine, with
ease, the maximum number of new subscription orders that can be generated
from a given promotion budget, and to optimise the allocation of promotion
budgets across marketing channels and source groups.
Our new LTV models
maintain the tradition of presenting the summary calculations and performance
metrics from each new subscription source group on a single page. In addition,
we have also included:
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