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How to Explode Your Subscription

Revenue Through Email Testing

and Strategic PricingJulie LohmeierVice President, MarketingZacks.comMonday, May 7, 2007


2 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Outline

3 Methods of Exploding Subscription Revenue

Results Lessons Learned




Repackage existing content Launch new content or services Offer paid “samples”



Repackaging Existing Content

Overview Often convert free content to paid Difficult at first, user resistance Requires low prices Example: Zacks Premium




Zacks Premium Zacks Rank

• Rank Stocks from #1(Strong Buy) to #5 (Strong Sell)

• “Earnings estimate revisions are the most powerful force impacting stock prices.”

• 31.9% Average Annual Return• $10,000 in 1988 now worth $1.7 Million• Partially free previously• Now only available through Zacks

Premium or Zacks Elite Additional exclusive research Incredible value




Zacks Process Free Preview Period – 14 days Introductory Rate – 1 month Occasional discounts post launch Email to house list for “heavy

lifting” Integrate on web site 90-Day Refund Policy




Pricing Strategy Preview Period: $99 for 13 months Charter Membership: $99 for 12

months Full price: $199 Discount: $149 Monthly option: $24.95




Tests – Subject line 2/14/07 90 Days to More Profits – or Your

Money Back How to Beat the Market with a

Premium Portfolio




Tests – Subject line 2/14/07 90 Days to More Profits – or Your

Money Back Winner: 17% increase on Open rate




Tests – Postcard 3/13/07 Long email to buy page Postcard to long page to buy page (Long email = Long page)




Tests – Postcard 3/13/07 Postcard to long page to buy page Winner: 4x more orders




Creative Winning postcard 3/13/07

• Subject = Limited Time: Save Now on Zacks Premium

New postcard to new landing page 4/17/07 • Subject = Special Savings for

Zacks.com Users – Expires Friday




Creative New postcard to new landing page

4/17/07 Winner: 36% more opens, 28%

more clicks, 136% more sales Landing page became new landing

page




Future Tests $50 off $150 off 25% savings Price = $149 on all



Launch New Content or Services

Overview Easier user acceptance Higher prices typically Counter-Intuitive: Customers will

pay more for less if it’s EASY and PROVEN to work

Example: Trading Services – Surprise Trader, Breakout Trader, Options Trader




Trading Services Easy: What to buy, when to buy it,

and when to sell Proven: Back-tested results =

55.8% per year on Breakout Trader Real results: Surprise Trader –

beats S7P 500 by nearly 3x, one stock up 17% in 13 days

Zacks Rank foundation




Zacks Process Launch “Updates” at week 1 or 2 Last week countdown on

introductory price Last day for charter price – 30 days Email + web site links and

placements 90-Day Refund Policy + Guarantee




Pricing Launch price: $995 Full price: $1495 Occasional discount offers at $995 –

limited time Once proven performance and

accepted,6-12 months, raise to $2995




Tests Surprise Trader – Subject 10/10/06 Zacks Best Kept Secret: Available

Now Zacks Secret to Profits this Earnings

Season




Tests Surprise Trader – Subject 10/10/06 Zacks Best Kept Secret: Available

Now Winner: 13% higher net CTR




Tests Surprise Trader – Postcard 3/20/07 Long Page to Buy Page Postcard to Long Page to Buy Page




Tests Surprise Trader – Postcard 3/20/07 Postcard to Long Page to Buy Page Winner: 166% more sales




Tests Breakout Trader – Copy 2/21/07 Resend Introduction to previous email




Tests Breakout Trader – Copy 2/21/07 Introduction to previous email Winner: 4:1 more in sales




Tests Breakout Trader – Subject 4/3/07 From a Lowly Zacks Sell or Hold to

an Emphatic Zacks Buy Outsmart Wall Street with New

Zacks Rank Breakout Trader




Tests Breakout Trader – Subject 4/3/07 From a Lowly Zacks Sell or Hold to

an Emphatic Zacks Buy Winner: 5:1 better on sales, 20%

higher net CTR



Offer Paid “Samples”

Overview Low-cost product* Loyalty reward, value add, or

enhancement to more expensive products

First purchase Relatively short-lived Timely offerings (eg., Top Stocks for

2007) Special Opportunities (eg., Stocks to

Double) Hot industries (eg., biotech, energy,

etc.)




Zacks Process Pre-launch promotion Launch Update

• Performance• “Teasers”

One month Regularly after launch, about 6

months Email + integrated on web site No Refund, Limited Guarantee




Price Encourage first time sale Don’t cheapen product Top 10: $299, Stocks to Double:

$99 Special discounts and permissions

• $100 off for paid customers (Top 10)• Free enhancement for Zacks Elite (S2D)




Tests Subject – Top 10 (12/9) What are Zacks Top 10 Stocks for

2007? Introducing Zacks top 10 Stocks for

2007




Tests Subject – Top 10 (12/9) Introducing Zacks top 10 Stocks for

2007 Winner: 22% higher net CTR




Tests Subject – Stocks to Double (4/24/07) Introducing Zacks New 6 Stocks to

Double New Zacks Report: Stocks to

Double




Tests Subject – Stocks to Double (4/24/07) New Zacks Report: Stocks to

Double Winner: 8% higher open, 22%%

better net CTR, 75% more orders




Tests Subject – Stocks to Double (5/1/07) Updated New Zacks Report, Stocks

to Double Breaking News on Zacks Report,

Stocks to Double




Tests Subject – Stocks to Double (5/1/07) Breaking News on Zacks Report,

Stocks to Double Winner: 31% better net CTR, 25%

more orders



Results

Quadrupled subscription business in 12 months

Launched 6 products Improved process as we went Did most of it with 3 staff, $0

external marketing Grew department to 6

employees



Lessons Learned

Don’t be afraid to charge high prices Guarantees and refund policies close

sales Postcards work Use Zacks name Test! When a price is over, it’s over. Copy is key. Leverage what you have. Don’t wait ‘til it’s perfect, get out there

and learn as you go.



Credit/Thank You

Julie [email protected]

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