Comments on: Some Perspective on High Churn Rates http://staging.blog.biakelsey.com/index.php/2009/07/01/some-perspective-on-high-churn-rates/ LOCAL MEDIA WATCH. The Nexus of All Things Local Mon, 01 Jun 2015 22:23:47 +0000 hourly 1 https://wordpress.org/?v=4.2.39 By: Peter Krasilovsky http://staging.blog.biakelsey.com/index.php/2009/07/01/some-perspective-on-high-churn-rates/comment-page-1/#comment-366030 Thu, 02 Jul 2009 15:37:23 +0000 http://blog.kelseygroup.com/index.php/2009/07/01/some-perspective-on-high-churn-rates/#comment-366030 This came in from Dick Larkin….

This is a very real and difficult problem for online advertising firms that distribute ads on search engines.

SEM requires significant monthly recurring expenses to be meaningful. When cash flow is tight, it’s an easy expense to suspend.

SEM requires a lower commitment than advertising in a publication printed annually.

There is very low pain associated with canceling an SEM program and restarting it later.

The SEM providers need to create a real benefit to the advertiser who continues his program and a real loss for the advertiser who does not continue his program.

In the print Yellow Pages, ads are usually paginated with largest ads first, then oldest ads coming ahead of other ads of the same size.

This has historically been a huge retention tool and it discourages advertisers considering reducing the size of their ad or not advertising for a cycle.

Success in local online media hinges on owning your destination site and making it so compelling that an advertiser sees value in maintaining position.

This is not only about the leads per dollar generated.

]]> By: Max Kalehoff http://staging.blog.biakelsey.com/index.php/2009/07/01/some-perspective-on-high-churn-rates/comment-page-1/#comment-366002 Thu, 02 Jul 2009 13:16:30 +0000 http://blog.kelseygroup.com/index.php/2009/07/01/some-perspective-on-high-churn-rates/#comment-366002 Hi Peter,
Are you going to make this report public? Would love to read it and add to the conversation.
Warm regards,
Max

]]> By: Michael Taylor http://staging.blog.biakelsey.com/index.php/2009/07/01/some-perspective-on-high-churn-rates/comment-page-1/#comment-366000 Thu, 02 Jul 2009 13:12:48 +0000 http://blog.kelseygroup.com/index.php/2009/07/01/some-perspective-on-high-churn-rates/#comment-366000 What sales organizations fail to realize about online products in particular is that SMBs have not moved to the loyalty stage of engagement. Most SMBs are still in the trial phase and need reinforcement and assurance that they made a wise investment. As all five companies have reinforced, the ongoing value of the program needs to be reinforced with reports showing clicks, calls and ultimately leads. Some sales organizations are reaching out more frequently to their online advertiser base to not only report the figures but also to help SMBs understand what the numbers mean and how to more fully leverage the results to build their business and add more leads.

The sales formula is not rocket science: determine the online needs of the advertiser, match the value of the product to meet the need, and reinforce a wise purchase decision so the SMB wants to renew or even increase its program.

Online sales teams need to understand the advertiser loyalty cycle to know that advertisers move from trial to comfort to satisfaction and ultimately to brand loyalty. Too often salespeople fail to realize the nurturing required to build brand loyalty, and sales organizations fail to build support systems to fully manage and develop these kinds of relationships.

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