Posted by: Matt Shanahan Okay, let’s get ‘real world’ with Demand Rating™. What can you do with it? More importantly, how does it help publishers and information providers monetize opportunity? Let’s first take a look a very common subscription service concern, account sharing. Account sharing for subscription services is often a given—for some industries it’s rampant and understood, in others it’s less common, but still done. Let’s assume for now, that with every subscription service, some account sharing is occurring. As a business leader in that organization, do you care? Do you chase each and every case of account sharing? Can all be successfully monetized? The answer is: It depends. If the subscriber is sharing one account but not using […]
Archive | 2009
Demand Rating™ Changes Everything
Posted by: Mark Upson Demand Rating™ is an approach that changes everything. When you reduce demand/loyalty to a quantifiable number a world of possibilities come into play. Suddenly, demand can be understood over time, and it can be understood in comparison to other specific subscribers, to segments of subscribers and across product lines. High demand ratings are good and low ratings are bad, and the rating implicitly incorporates sales risk and opportunity into the equation. Demand Rating enables subscribers to be averaged, ranked and compared. Instead of relying upon the intuition of account managers as an indicator of subscriber loyalty, Demand Rating uses analytics. And it’s useful across a broad set of functions in the organization. For Sales, Demand Ratings […]
Demand Rating™—Quantifying Subscriber Loyalty
Posted by: Mark Upson What if you could track your subscriber relationships as easily as your financial portfolio? Think of Demand Rating™ as the P/E Ratio for the subscriber relationship—it’s the strength of product demand in a single number. Where the P/E ratio for a company is a financial indicator of investor demand for a company’s stock, giving investors a single, normalized number that can be analyzed and compared across the portfolio, Demand Rating gives that same type of clarity for the strength of the subscriber relationship, i.e., subscriber loyalty. Pretty powerful stuff considering most companies must rely upon the subjectivity of the account team to determine subscriber loyalty. Yes, they use pseudo numbers like “confidence level” with guidelines for […]
Knowing What’s Knowable
Posted by: Pete Horadan So what is knowable? The health of the recurring-revenue business really revolves around a full understanding of customer demand, so the critical metric needed is a measure of that demand, or a demand rate. There are three, interrelated components of demand—usage (session data), contract data (terms of the customer relationship) and firmographics (the demographics of an organization.) Usage data, in the subscription world, describes what is consumed and happens over time. It’s not about a single user visit, but about aggregated groups of users on different devices, at different locations. It’s a highly dynamic longitudinal view of the customer, so logging and measuring it is tricky. Contract data is the information about the business relationship—what licenses […]
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