Don’t Miss a Day.

The Globe and Mail

Benchmarking Strategies

and Applications

MAAX Users Group

Meeting

March 8, 2005

Don’t Miss a Day.

1

Overview

1. Reporting: Are There any Standards?

2. The Globe and Mail Market and Audience

3. Prospect Universe and it’s Challenges

4. Software Tools and Data On Hand

5. Key Areas of Focus

• Acquisition

• Attrition

• Churn

• Retention

• Tenure

• Circulation Levels ( Specifically Greater Than 50% Paid)

6. Next Steps

Don’t Miss a Day.

2

Reporting

• Circulation reporting does not seem to have many common standards across the industry.

• Often this seems to be true even within the same newspaper company.

• This year, The Globe and Mail will be developing a set of standardized integrated reports using the tools and data that are now available.

• This level of sophistication and trending analysis has not been possible to date without the assistance of these tools.

Don’t Miss a Day.

3

The Globe and Mail

The Market

• Canada’s National Newspaper

• 1,000,000 readers per day

• Circulation 350,000 daily

• Home delivery 200,000

• Subscription Price $315+ per year

• Most subscribers pay full or slightly discount rates

• Majority ownership is Bell Canada Enterprises

Don’t Miss a Day.

4

The Globe and Mail

The Audience

• Highly educated, affluent audience

• Managers, Owners, Professionals and Execs.

• Represent the top 4% in Canada affluence

• Delivered in every major market in Canada

• 85% Easy-Pay

• Majority ownership is Bell Canada Enterprises

Don’t Miss a Day.

5

Circulation Strategy for 2005

• Steady and stable growth of the greater than 50% paid

subscriber base.

• Improve retention.

• Improve the efficiency of subscriber acquisition

• Maintain high demographic profile of the audience.

• Note: Circulation Handles Distribution and Customer Service,

Marketing Manages Subscriber Acquisition and Retention

Don’t Miss a Day.

6

The Prospect Universe

• Canada has 13 Million Households

• Approximately 5 Million are within a deliverable footprint

• Of those just over 2 Million are demographically attractive based on minimum standards.

• These households are the most likely to opt in to Do Not Contact lists.

• They also own call screening technology and are difficult to reach.

Don’t Miss a Day.

7

Primary Software and Data On Hand

Software

• MAAX

• R-Logic

• DI Diver

Data

• Canadian Census Data

• Consumer Spending

• Cluster Data

Don’t Miss a Day.

8

Key Focus Areas

Acquisition

• Orders by Channel

• Orders by Service

• Orders by Payment Type

Attrition

• Annual Uncontrollable Attrition Rate

• Volume and Nature of Unsecured Temporary Stops

• Stops within 5 weeks

Don’t Miss a Day.

9

Key Focus Areas

Churn

• Three Year Trending of Overall Churn

• Profile Frequent Churners versus Non-Churners

Retention

• Standard R-Logic Reports Trended Over Three Years

• Start Source

• Payment Type

• Offers

• Service Type

Don’t Miss a Day.

10

Key Focus Areas

Tenure

• Percentage of Subscribers with Service <1 year, 1-2

years, 2+ years etc.

• Trending over Three Years

• Demographic Profiling

Circulation Levels

• Greater than 50% Paid Trends

• Total Circulation By Geographic Segment

Don’t Miss a Day.

11

Examples

All data displayed is relevant but has been modified for purposes of confidentiality

Don’t Miss a Day.

12

Acquisition: Volume by Channel

45

28

23

4

39

27 26

8

35

2528

12

0

10

20

30

40

50

2003 2004 2005

Telemarketing Voluntary Kiosks Direct Mail

Percent

Don’t Miss a Day.

13

Acquisition: Orders by Service

52

35

85

53

33

7 7

58

28

95

0

10

20

30

40

50

60

2002 2003 2004

Mon-Sat Sat Only Mon-Fri Fri-Sat

Percent

Don’t Miss a Day.

14

Acquisition: Orders by Payment

82

18

84

16

85

15

0

10

20

30

40

50

60

70

80

90

100

2002 2003 2004

Easy Pay Cheque

Percent

Don’t Miss a Day.

15

Attrition: Uncontrollable Losses

13,23414,324

14,876

0

5000

10000

15000

2002 2003 2004

Unrecoverable Permanent Stops

Stops

Don’t Miss a Day.

16

Attrition: TM Stops Within 5 Weeks

12,723

10,111

4,322

0

5000

10000

15000

2002 2003 2004

Stopped Within 5 Weeks

Stops

Don’t Miss a Day.

17

Churn: Annual Churn Rates

36 3328

0

10

20

30

40

50

60

70

80

90

100

2002 2003 2004

Churn

Percent

Don’t Miss a Day.

18

Retention: Cost per Unit Trending

$221 $207 $198

0

100

200

300

400

500

2002 2003 2004

Cost Per Pressure Start

Don’t Miss a Day.

19

0

5

10

15

20

25

SIXTEEN PLUS TEN TO

FIFTEEN

YEARS

SIX TO NINE

YEARS

FIVE YEARS FOUR YEARS THREE YEARS TWO YEARS ONE YEAR

OLD

THIS YEAR

SUBSCRIBERS

New Subscriber Tenure

By Percent Total Circulation

Tenure: Percent of Subscriber Base

Don’t Miss a Day.

20

86.4875.19

59.96

0

10

20

30

40

50

60

70

80

90

100

2 Years + 3Years + 5 Years +

SUBSCRIBERS

New Subscriber Tenure

By Percent Total Circulation

Tenure: Percent of Subscriber Base

Don’t Miss a Day.

21

Circulation Level: Greater Than 50% Paid

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

2003 2004 2005

SUBSCRIBERS

+1% +3%

Don’t Miss a Day.

22

Households with Income over $150,000

Income and Education

100

211

489526

0

100

200

300

400

500

600

Ontario Globe Readers

Globe Subscribers Recognition Cardholders

Index

Don’t Miss a Day.

23

Income and Education

Households with University Education

100

163179

186

0

100

200

Ontario Globe Readers

Globe Subscribers Recognition Cardholders

Index

Don’t Miss a Day.

24

Next Steps

• Establish a definitive set of reports that are relevant and useful.

• Design a user friendly format and environment

• Create a simple work flow process to produce the reports in a

timely manner.

• Relate internal results to industry standards where applicable

and accurately comparable.