Industry research firm Outsell has partnered with subscription analytics provider Scout Analytics to sell a new subscription service. Simply put: "Clients will be able to use technology to segment
their customers," said Mark Upson, president and CEO of Scout Analytics.
Indeed, Outsell Scout Analytics is designed to help clients better understand their customers and where the greatest
value potential for their content exists at a difficult time for the industry, according to Greg Chagaris, Outsell's co-founder and corporate development officer.
"As the economic downturn puts
new pressures on revenues, information companies cannot afford a one-size-fits-all approach to subscriber relationships," said Chagaris.
In early tests, response to the Outsell Scout Analytics
service has been positive. One international business information provider who did not wish to be named reported discovering that 23% of its accounts had unlicensed use, which potentially equals a
large revenue opportunity.
The technology platform monitors user sessions and aggregates a digital "signature" associated with a customers' access and usage, such as device, location, identity,
domain, institution, and content.
"Paid content providers have a unique advantage to understand and tap into customer demand," said Antonio Monteiro, chief information officer, Internet
Securities. "Every day, customers leave a digital signature that tells us more about who they are and how they gain value ... Capturing and analyzing that signature gives us the insight to maximize
the revenue of our offerings."
Outsell Scout Analytics attempts to give clients insights into their customer demand at the corporate and user ID levels. Companies can monetize demand by analyzing
unauthorized use, focus attention on customers who are at risk of not renewing, and offer active customers products they may not currently use.
The technology also gives clients segmentation
information and visibility into content usage and demand for each customer segment, as illustrated through dashboards.
Outsell works with clients to analyze the findings, and determine marketing,
sales and service strategies for specific customer segments.
In addition, the technology platform integrates with sales force automation, and other software designed to trigger sales contacts,
marketing emails, or customer service follow-up.
According to Outsell research, information providers' growth is slowing overall, increasing the need to identify new revenue opportunities and
hold on to the advertising and subscription revenue they already have. In 2009, Outsell projects that the information industry will drop about 4%, with the news segment being the hardest-hit with a
decline of nearly 20%.
Along with this slowing growth, subscribers' budgets are shrinking. In 2010, Outsell expects vendor portfolio budgets for information to decrease 4%.
Where are the
revenue opportunities? Information/publishing companies have become increasingly dependent on electronic revenues. From 2003-2008, electronic revenues rose from 29.9% of companies' overall revenues to
49%. (These include revenues from advertising, subscriptions and transactions.)