Lauren Moloney, GM of Growth & Customer Communication, News Corp Australia, Presented 'Building a Subscription Based B2B Business and the Value Infinity Loop'
2. Lauren
Moloney
LOVER OF SUBS
● General Manager of SMB Growth and
Customer Commercialisation at
News Corp Australia.
● Founding member of News Corp’s
digital marketing division, News Xtend.
● News Xtend is a subscription business
experiencing up to 80% growth each
year.
● Have spent time in New York, San Fran
and Tel Aviv studying successful
subscription businesses.
3. Why you need to shift your B2B business from asset transfer
mindset to long term relationship mindset.
Why you should move the finish line: move your goals from
customer acquisition to number of customers who are still with you
in month 6, 12, 36 and so on.
How?
Hot Tip #1: Provide value that will make users pay and stay
Hot Tip #2: Make it sticky
Hot Tip #3: Surprise and delight in moments of truth
Hot Tip #4: Turn the churn
Building a subscription
business overview
4. Old School New School
Old Business Model
Channels
Customers
New Business Model
Services
Subscriber
Experience
Channels
5. This model involves exchanging money for
a product or service at a given point in time.
How you grow your business with asset transfer mindset:
● Sell more, more frequently
● Increase price
● Decrease cost to serve
Old School
ASSET TRANSFER MINDSET
6. New School
LONG TERM RELATIONSHIP MINDSET
The customer and the business have an
ongoing relationship where money is
continually exchanged for ongoing value.
How you grow your business with long
term relationship mindset:
● Acquire more customers
● Increase the value of those customers
● Hold onto those customers longer
Subscriber
Quote Collect
Invoice Provision
OrderRecognise
Subscribe
Suspend
Upgrade
Downgrade
Renew
Resume
7. Challenges:
● What customers deemed to
be valuable was unclear due
to lack of data.
● Why businesses bought from
us was unclear.
● Asset transfer mindset =
No recurring revenue =
short term business model
How we used to think about customers
B2B :
Advertising was
sold as a campaign
B2C :
Readers would
buy a daily edition
of the newspaper
Challenges
8. B2C
Consumers have a relationship with the brand
Channel agnostic in their consumption
Editorial & advertising subscriptions
B2B
Marketing solutions based subscriptions
Owned and paid assets, goal/results orientated, channel
agnostic, long term relationship to help build their business
New School
9. What does a subscription mean for customers?
Solutions to meet more
of their needs more of
the time.
Grow and change
over time
Personalised value
10. What does a subscription
mean for a business?
Subscription sales are like snowballs,
they grow with momentum
11. Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7
New customer/revenue
Lost customer/revenue
Customer base/recurring revenue
12. Maybe No way
MaybeYES, PLEASE
It’s all about
Effort vs Impact
High
Effort
Low
Effort
High
Impact
Low
Impact
15. The value infinity loop
Buy
Market & Sell
Own
Support & Service
Purchase Receive
Use
Recommend MaintainNeed
Research
Select
4 5
6
781
2
3
“Be relevant”
“Engage me”
“Be transparent”
“Make it easy”
“Minimise my risk”
“Earn my trust”
“Know my history”
“Give me more value”
“Be consistent”
“Reward me”
“Deliver on my needs”
17. Data is…
CRUCIAL IN KNOWING YOUR CUSTOMERS
Data will enable you to know about your
customers and therefore what problem
you can solve for them. This is beneficial
to the consumer and the business.
Technology…
MAKES EXECUTING EASY
Make it easy to reach customers in any location.
Enable auto renewal and billing.
Means easier personalisation and value add.
Showcase the results or value to customers
at any point in time.
21. How does netflix ensure that
customers don’t cancel after
their free trial?
Once netflix has data on what content you like
they are pretty good at keeping you subscribed.
But how do they ensure you stay subscribed after
the 30 day free trial period?
Netflix implemented first time user discovery
questionnaire in order to get an idea really quickly
the type of content the new subscriber likes.
Personalisation = value & stickiness
22. Netflix also adds value by...
Continual suggestions of
addictive and bingeable
series based on your
interests
Original content Low price point
23. What can you do
today to create
more value for
your customers?
Map out your customer touchpoints
How can you use that to provide
value at every touch point?
What data do you have? Where can
you learn about what they want?
27. What makes a business offering sticky?
Make it frictionless
to buy and use
Ensure your product and
service set is part of your
customers everyday life
Make it easy to stay
(and harder to leave)
30. Subscription customer & brand journey
ResearchDiscovery
Customer
Engagement
Moments
of Truth
Need
Customer Journey
Customer Touch-points
Data/Customer Feedback
Brand Value-adds
31. Q: How do you know what the moments
of truth are for your customers
and how do you make sure each
touch point adds value?
A: Use data to know your customers
32. What we do
Surprise
gifting
1
Who is working on
your campaign
document
LIVE 32 4
LIVE results
dashboard
Exclusive content
through customer
portal
NPS check-in Surprise gifting
Loyalty and rewards
program initiated
Purpose built resources and
template provided that will
help them with other areas of
their business
5
Monthly results & review and strategy session
33. Excellent customer service (NPS of +58)
Award winning campaigns & results
Actually… just surprise and
delight them all the time
1LIVE 32 4 5
34. Hot tip #4:
Turn the churn
Churn: The point at which
consumers decide the amount
they're paying exceeds the value of
the service and opt out.
39. Hot Tip #1:
Provide value that will make users pay and stay
Hot Tip #2:
Make it sticky
Hot Tip #3:
Surprise and delight in moments of truth
Hot Tip #4:
Turn the churn
