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Beyond Behavior:. Understanding Reader Satisfaction. Linda Sease The E.W. Scripps Company. Traditional customer satisfaction metrics do not necessarily measure customer loyalty or predict company growth. Customer loyalty and satisfaction is about much more than repeat purchases. .

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slide1

Beyond Behavior:

Understanding Reader Satisfaction

Linda Sease

The E.W. Scripps Company

slide2
Traditional customer satisfaction metrics do not necessarily measure customer loyalty or predict company growth.
slide4
A customer who buys again and again from the same company may not necessarily be displaying loyalty – they may be trapped by inertia, indifference, or exit barriers erected by the company or circumstances.
    • Conversely, a loyal customer may not make frequent repeat purchases because of a reduced need for a product or service.
slide5
Traditional measures of customer loyalty (such as customer retention rates) are complicated measures that may relate to company profitability – but not growth.
    • Conventional customer satisfaction measures often lack a demonstrable connection to actual customer behavior and growth.
slide6
The Net-Promoter Score (NPS) metric was designed to offer an effective measure of customer loyalty, one that predicts company growth.
    • Survey responses from 4,000+ customers matched to actual behavior over time
    • Fourteen case studies built
    • Resulting data determined which survey question had the strongest statistical correlation with repeat purchases or referrals
slide7

“How likely is it that you would recommend [Company X] to a friend or colleague?”

  • One question effectively predicted the behaviors that drive growth:
slide8

That is, the likelihood of a consumer to recommend a product is a predictive measure of loyalty.

  • A customer’s likelihood of recommending a company to a friend or colleague captures the essence of customer loyalty.
    • Measured by how often a customer talks up a company to family, friends, and colleagues.
slide9

They typically only take that risk when they are intensely loyal.

  • When customers act as references, they do more than indicate they have received good economic value from a company.
    • Their own reputation is on the line
slide10
Customer loyalty and satisfaction can be measured by asking, “How likely would you be to recommend [Company X] to a friend or colleague?”

Not At All

Likely

0

Extremely

Likely

10

Neutral

5

1

2

3

4

6

7

8

9

Detractors

Promoters

Passively

Satisfied

slide11
Defining the three customer clusters:
  • Promoters have the highest rates of repurchase and referral.
  • Passively Satisfied customers stay witha particular company more due to inertiathan true loyalty.
    • Quickly use a different company if presented with a better deal
  • Detractors spread negative word-of-mouth comments about the company.
    • Negatively impacts company’s reputation, ability to attract newcustomers and employee morale
slide13

The size of a company has no apparent relationship to its NPS.

  • Strong correlation between a company’s growth rate and the percentage of customers who are Promoters.
    • Getting customers enthusiastic enough to recommend a company appears to becrucial to growth.
slide14

Median NPS across 400 companies in 28 industries surveyed was 16%.

  • Companies with the most enthusiastic customer referrals have Net-Promoter Scores from 75% to more than 80%.
slide15
NPS provides a measure of customer loyalty linked to customer behavior and ultimately, to company growth.
    • In order for a company to experience “true growth” and “good profits” it must have customers that are both profitable and satisfied.
      • Customers are profitable when they make repeat purchases, are less price-sensitive, and show interest in new products or brand extensions.
      • Customers are truly satisfied if they refer the company to friends and colleagues.
slide16
Promoters are generally profitable and satisfied – they usually buy more and actively refer friends and colleagues.
    • A company will experience long-term and sustainable growth only if the percentage of Promoters is greater than the percentage of Detractors.
slide17
NPS enables companies to gather simple, timely, and actionable information.
    • Keep customer surveys simple and gathertimely information that is easy to act upon
    • Data obtained by the NPS metric is actionableand easy to interpret and communicate
    • Allows for tracking and comparing NPS over time, within a company, and against national averages, as well as against direct competitors
slide18

No airline has found a way to increase growth without improving its ratio ofPromoters to Detractors.

  • In most industries there is a strong correlation between a company’s growth rate and the percentage of its customers who are Promoters.
    • Airlines: strong correlation between NPS and a company’s average growth rate
  • Rental cars: Enterprise Rent-A-Car enjoys the highest rate of growth and highest Net-Promoter percentage among its competitors
slide19

“We need more Promoters and fewer Detractorsin order to grow.”

  • Guidelines for using NPS to motivate company-wide change:
    • Be sure that everyone in the company knowswhich customers they’re responsible for.
    • Make your scores transparent throughoutyour organization.
    • Create a sense of urgency by tying rewardsto score improvement.
slide20
The NPS metric can be applied to the newspaper industry to provide insight into readership behavior and satisfaction.
    • Traditional readership studies help illustrate behavior but do not gauge reader satisfaction
    • NPS allows for a new level of accountability, actionability, and urgency to address readers’ needs and expectations
slide21

Establish a disciplined approach to understand how well the newspapers are meeting consumer needs.

  • Scripps Readership Survey:
slide23
Scripps Readership Survey Requirements:
  • Current readers of Scripps newspapers
    • Read at least one time in the last monthor visited the website three to four timesin the last month
  • Ages 18 to 54
  • Sample to reflect market in age, gender,and race/ethnicity
  • Actionable and customer-focused questions
slide24
Of 8,838 total respondents, almost 60% were current Scripps newspaper subscribers.

Respondent Buying Behavior – Total Scripps Markets

Read Online

3%

Read Someone Else’s

16%

Current Subscriber

59%

Buy Single Copy

22%

N = 8,838

slide25
Across Scripps markets, one-quarter of respondents read both the print and online versions of the newspaper.

Audience Reach – Total Scripps Markets

Online Only

2%

Print and Online

25%

Print Only

73%

N = 8,838

slide26
The sample reflected the markets overall in age and gender…

Respondent Demographics

45 to 54

Male

25 to 44

Female

18 to 24

By AgeN = 8,838

By GenderN = 8,838

slide27
…but there was a higher percentage of households with children represented.

Respondent Demographics

No

Yes

By Presence of ChildrenN = 8,156

slide28
Education and income levels were also higher than the total market population.

Respondent Demographics

Post-Grad+

$75,000+

Bachelor’s

$50,000 to

$74,999

Some College/

Associate’s

$25,000 to

$49,999

HS Grad

Under$25,000

Less than HS

By EducationN = 8,676

By IncomeN = 7,975

slide29
Hispanic respondents reflect the market, but African-American respondents were slightly underrepresented.

Respondent Demographics

Other

All Others

African-American

All Others

Hispanic

San Angelo

Evansville

TC

Naples

Anderson

Ventura

Caucasian/Non-Hispanic

Memphis

Corpus

Versus MarketsN = 8,689

Sample Concentration by Market

N = 8,689

slide30

“On a ten-point scale, where1 = Extremely Unimportant and 10 = Extremely Important, how would you rate the topic of [Topic]at this point in your life?”

  • Questionnaire Structure:
    • Part 1: Topic importance
slide31
Questionnaire Structure:
    • Part 1: Topic importance

Topics Covered

slide32
Questionnaire Structure:
    • Part 1: Topic definitions were as specific as possible to avoid confusion or overlap
slide33
Questionnaire Structure:
    • Part 1: Topic definitions (continued)
slide34
Questionnaire Structure:
    • Part 1: Topic definitions (continued)
slide35

“Using a ten-point scale where1 = Not At All and 10 = Extremely Likely,how likely would you be to recommend [Scripps Newspaper]to a friend or colleague as a source for [Topic]?”

  • Questionnaire Structure:
    • Part 1: If topic is important (8, 9, 10), then ask:
slide36

“Based on your interest in the topic, what do you think is your single most important source for information about [Topic]?”

  • Questionnaire Structure:
    • Part 1: If NOT likely to recommend (1 – 7), then ask:
slide37

“It is in touch withthe community.”

“This newspaper presents a broad range of opinions.”

“ I trust this newspaperto be honest and fair.”

“I learn things from this newspaper.”

  • Questionnaire Structure:
    • Part 2: Attitudinal statements:
slide38
Questionnaire Structure:
    • Part 2: Statements reflected:
      • Personal fulfillment/knowledge
      • Connectedness to local community
      • Ease of use
      • Credibility/accountability
      • Value
      • Inhibitors
  • Several were “Motivator” statements taken from Readership Institute New Readers Study
slide39

“If you could talk directly to [Scripps Newspaper], what suggestions could you give them to make the newspaper and/or its website more satisfying to you in your daily life?”

  • Questionnaire Structure:
    • Part 3: Open-ended suggestions
  • Verbatims were coded and grouped by subject for each market.
slide40
Questionnaire Structure:
    • Part 4: Likely to recommend

“Considering all the aspects of [Scripps Newspaper], how likely would you be to recommend the newspaper to a friend or colleague as a source of informationin general?”

slide42
Plotting topic importance against NPS revealed areas of opportunity.

Topic Importance/Assessment – Newspaper B by NPS (Southern)

Median = 37%

High

Opportunity

Defend

Schools/Ed

Local News

Religion/

Spirituality

Other Newspaper

Advertising

Family/Friends

Classified

Advertising

Topic Importance

Health

Median = 6.9

Community/Neighborhood

Entertainment/Leisure

Finances

Careers

PersonalGrowth

Sports

Home

Low

Net-Promoter Score

Low

High

  • Religion/spirituality scored higher in importance in Southern Scripps markets.
slide43

Promoters (9-10) 48%

– Detractors (0-6) 22%

Net-Promoter Score 26%

  • Newspaper B had an NPS of 26%, with 48% of respondents as Promoters.

Newspaper B Overall Assessment

Detractors

Passively

Satisfied

Promoters

Mean = 8.0

slide44
The topics of Health, Family/Friends, and Finances emerged as areas of opportunity for Newspaper G.

Topic Importance/Assessment – Newspaper G by NPS

Median = 20%

High

Opportunity

Defend

Local News

Health

Entertainment/Leisure

Schools/Ed

Family/Friends

Finances

Community/Neighborhood

Topic Importance

Median = 6.7

PersonalGrowth

Home

Other Newspaper

Advertising

Religion/

Spirituality

Classified

Advertising

Sports

Careers

Low

Net-Promoter Score

Low

High

  • The topic of Finances moved into the Opportunity quadrant in select Scripps markets.
slide45

Promoters (9-10) 42%

– Detractors (0-6) 25%

Net-Promoter Score 17%

  • Newspaper G had a NPS of 17%, with 42% of respondents as Promoters.

Newspaper G Overall Assessment

Detractors

Passively

Satisfied

Promoters

Mean = 7.7

slide46
Across all Scripps markets, several topics emerge as areas of opportunity.

Gap Analysis

Topic Importance/Assessment, All Markets

Median = 27%

High

Opportunity

Defend

Local News

Schools/Ed

Health

Family/Friends

Entertainment/Leisure

Religion/

Spirituality

Community/Neighborhood

Topic Importance

Median = 6.5

Other Newspaper

Advertising

Finances

Classified

Advertising

Home

PersonalGrowth

Careers

Sports

Secondary

Foundational

Low

Net-Promoter Score

Low

High

slide47
Several topics and attitudes influence NPS:
    • The more readers recommend the Scripps newspaper for Local News, Entertainment/ Leisure, Advertising, and Sports, the more they recommend the Scripps newspaper overall; however, improving content in topic areas alone will be insufficient.
    • Newspaper enjoyment and value are predictive of overall recommendation ratings.
slide48
Trusting the newspaper to be honest and fair and believing thenewspaperpresents a broad range of opinions also are positively correlated with overall recommendation ratings.
  • NPS among respondents who had concerns about bias were lower than those who did not share the concerns, suggesting that the perception of bias negatively impacts NPS.
slide49

Promoters (9-10) 43%

– Detractors (0-6) 26%

Net-Promoter Score 17%

  • Scripps had a total NPS of 17%, with43% of total respondents as Promoters.

Total Respondents

Detractors

Passively

Satisfied

Promoters

Mean = 7.6

slide50

-35%

0%

20%

35%

  • Net-Promoter Scores ranged from 33% to -26% across Scripps Markets.

Overall NPS by Market

17%

Scripps Mean

Newspaper E, F

Newspaper B

Newspaper A

Newspaper C

Newspaper H

Newspaper N

Newspaper L

Newspaper I

Newspaper D

Newspaper G

Newspaper M

Newspaper J, K

slide51

-26%

0%

20%

40%

OPPORTUNITYTopic

  • The topic of Schools/Education was important to respondents, but Net-Promoter Scores were all below 40%.

Schools/Education NPS by Market

23%

Scripps Mean

Newspaper E, I

Newspaper B

Newspaper M

Newspaper G

Newspaper A

Newspaper D

Newspaper L

Newspaper J

Newspaper N

Newspaper F, K

Newspaper C, H

slide52

-50%

0%

20%

33%

OPPORTUNITYTopic

  • Health also ranked high in importance but Net-Promoter Scores were relatively low.

Health NPS by Market

11%

Scripps Mean

Newspaper G, C

Newspaper L, N

Newspaper M

Newspaper D

Newspaper F

Newspaper K

Newspaper A

Newspaper J

Newspaper I

Newspaper E

Newspaper B

Newspaper H

slide53

20%

40%

50%

60%

DEFENDTopic

  • Local News was a topic of high importance and relatively strong NPS.

Local News NPS by Market

41%

Scripps Mean

Newspaper B, C

Newspaper D

Newspaper N

Newspaper B

Newspaper K

Newspaper L

Newspaper I

Newspaper A

Newspaper H

Newspaper M

Newspaper F, G, J

slide54

FOUNDATIONALTopic

  • Classified Advertising is a “Foundational” topic because it is a topic that readers expect newspapers to cover well.

Classified Advertising NPS by Market

64%

Scripps Mean

Newspaper A

Newspaper C

Newspaper D

Newspaper E

Newspaper F

Newspaper L

Newspaper I

40%

70%

75%

60%

Newspaper B

Newspaper H

Newspaper K

Newspaper J, N

Newspaper G, M

slide55
The following judgments were used to assess the attitudinal ratings:

Newspaper Attitudes – Ratings Assessment

Excel-lent

Poor

Neutral

Fair

Good

1

2

3

4

5

3.5

4.5

slide56
Of the 23 attitudes, Scripps newspapers generally scored in the Fair category, suggesting room for improvement.

Newspaper Attitudes – Ratings Assessment

Excel-lent

Poor

Neutral

Fair

Good

slide57
Provocative Bias Findings:
    • Concern over newspapers being biased appears to be an important issue for the affluent.
    • Reflecting minority communities accurately was noted as an issue across minority groups.
slide58
Provocative Lifestage Findings:
    • Families are a key segment to defend and grow for both readership and advertisers.
      • Schools/Education may be a way to reach them
slide59
Thirteen High-Priority Opportunities:
  • Continue to improve and enhance the core, fundamental topic areas of Local News, Entertainment/Leisure, Advertising, and Sports.
  • Extend reach and delight readers with information on Schools/Education and Health.
  • Religion and Spirituality represents an opportunity in select markets.
  • Newspapers identified as vulnerable need to aggressively address their positions.
slide60

Several markets are in strong positions to build on for local market dominance.

  • Scripps newspapers need to improve their perception of delivering fresh news.
  • Explore improving ratings of overall enjoyment of reading the newspaper and perceived value to increase overall recommendation ratings.
    • Trusting the newspaper to be honest and fair and presenting a broad range of opinions also are worth attention.
slide61

Improving content in topic areas alone will be insufficient.

  • Families, representing 55% of the total, are a key segment to defend and grow for both readership and advertisers.
  • Concern over newspapers being biased appears to be an important issue for the affluent.
slide62

Reflecting minority communities accurately is an important core value of the E.W. Scripps Company, but was noted as an issue across minority groups, most importantly among upper-income African-Americans.

  • Newspapers need to do a better job in the battle with television in local news.
  • Scripps newspapers need to have a proactive local Internet strategy to complement the print product(s).
slide63

Religion/Spirituality represents an opportunity in select Southern Scripps markets – a collective initiative to address this topic may be worthwhile.

  • Market-Level Next Steps:
    • Create collective initiatives to address content areas of common interest
    • Share best practices at newspapers with high NPS
    • Identify newspapers in need of improvement
slide64
Corporate-Level Next Steps:
    • Long-term commitment to tracking and improving its Net-Promoter Scores.
    • The complete study will be conducted in odd years in all 14 markets; an abbreviated study focused on demographics and Likely to Recommend will be conducted in even years.
    • Address online needs and opportunities in Phase II.
slide65

K

a

n

n

o

n

  • For more information:
  • Linda Sease
  • The E.W. Scripps Company
  • 303.484.1885
  • linda.sease@scripps.com
  • Barbara Cohen
  • Kannon Consulting, Inc.
  • 312.346.2244
  • bcohen@kannon.com