Using customer print and online magazines

The circulation figures speak for themselves. With print runs that go into the millions, retail customer magazines are big business.

Of the top 10 most widely read consumer publications in the market, three of them belong to retailers – Asda, Tesco and Sainsbury’s. Of course, many of these titles are distributed free of charge, but they make the 500,000 circulations of household brands such as OK! and Heat seem paltry.

In terms of marketing spend, customer magazines are well suited to these recessionary times because, if well executed, they are the perfect medium to foster that all important relationship with the customer. In June both Next and Co-operative Group revealed plans to launch their own branded titles, reflecting the fact that retailers recognise the value of such an investment despite heavy restraints on marketing budgets.

August Media publishes Ikea’s magazine Ikea Family Life. As managing director Mark Lonergan says: “Retailers want to hang on to customers, prove to them that they care and build a strong two-way relationship. Customer magazines are the only time where you’re able to stop a customer and impart information that’s more extensive than, say 50 per cent off or a 2-for-1 deal.”

Simon Hobbs, managing director of Forward, which publishes Tesco’s Clubcard magazines, agrees. “Customer loyalty has become more important and if you want to build the customer relationship, and this is the perfect medium to do that,” he says.

But the world of customer magazines is also a rapidly evolving industry. Just as retailers have had to embrace the importance of online with their transactional websites, the digital space is becoming increasingly crucial if they want to maximise the effectiveness of their customer communications.

Association of Publishing Agencies  (APA) chief operating officer Julia Hutchison says that 15 per cent of the content provided by the APA’s 40 members is now for online channels.

So what is the value of the digital world for customer magazine content and how is it being used to best effect? One benefit is that it enables retailers to talk to readers more immediately and more frequently. For instance, this summer Forward has launched a summer recipes microsite for Tesco’s Healthy Living Clubcard members. Hobbs says: “Customers were telling us it would be really useful to give mums ideas for inexpensive and healthy recipes for meals for kids during the holidays.”

Two-way communication

The online space is also a useful way to create a sense of community among website visitors, often aided by reader generated content. Ikea’s Family Life magazine features pictures of readers’ homes to demonstrate Ikea products in use. Lonergan says this has been developed effectively online by inviting visitors to upload their own pictures of their home. “It inspires people who have a story to tell,” he explains.

In November last year, Waitrose was the first grocer to launch an e-zine – Waitrose Seasons Live – which is an online version of its Seasons recipe magazine that is available in stores. Waitrose director for marketing and brand development Rupert Thomas says it is the perfect way to “deliver its content to a much wider audience, with the ability to talk to both new and potential Waitrose customers in a format that is relevant to them”. With about 55,000 readers per issue and archived issues receiving about 200 hits per day, it has proved to be a popular addition to its site.

Importantly, online technology means that digital content enables greater interaction through the use of videos, games, podcasts and so on. Waitrose provides video clips with step-by-step demonstrations of how to make the dishes. Its present edition has a clip of Waitrose executive chef Neil Nugent talking about top tips for outdoor cooking, as well as one of Waitrose’s farmers talking about his seasonal lamb.

The other added bonus of online content creation is cost. It can prove to be a more cost-effective medium for retailers because it negates print and distribution costs. But as Hobbs says, online does not necessarily equate to cheap – the likes of video production and game creation have cost implications too.

Exploiting digital content to best effect requires careful planning. Redwood publishes customer magazines for brands including Marks & Spencer, Boots and La Redoute. Redwood group account director Jamie Toward says retailers need to consider their exact end requirements. Do they want to simply use it as another marketing channel? Or do they want to develop their website – and therefore their online shopfront – so that it becomes an entirely different environment with which to communicate with their customers? While there is value in the latter in terms of engagement, ensuring this does not detract site visitors from browsing and – crucially – spending, can be a challenge.

In addition, accessibility and usability are equally as important as they are for the transactional parts of a retailer’s website. Thomas says Waitrose works hard to ensure minimal download times for all internet connections and that functions such as zoom are easy to use. Because of the high use of video and audio content, it also includes transcripts for the hard- of-hearing.

The extent of digital content use will depend to a degree on the brand and, as such, retailers need to consider the optimum channels that will maximise investment. Hobbs says printed formats are particularly effective when there is an associated element of indulgence such as the luxury sector or home and interiors. “It’s about aspirational content and readers can luxuriate in that world,” he says.

However, if retailers want their customers to access up-to-date offers and immediate information, websites come into their own. As Toward says: “People look for different types of content depending on what they’re doing. Online is about getting an answer or getting interactive entertainment.”

Further down the line, will there still be a role for the traditional printed customer magazine? The average dwell time for a customer magazine is 28 minutes, with retail titles generally being read for about 40 minutes or more. As Toward points out: “How many repeat visits would you need to get to a website to replicate that?”

Hutchison says: “We’re still seeing more launches in the customer magazine space and I don’t think you can replicate that level of engagement online.” While online is important for creating a buzz about the brand, integration of on and offline is key.

The scope for developing customer content online is huge, says Hobbs, but he likens debates about the future of the printed publication to when TVs first appeared several decades ago. “People said radio was dead, but actually although radio did dip for a while, it’s still hugely popular because it’s very good at what it does. Magazines will continue to do well.”

Nevertheless, the digital space is changing very quickly and there is significant scope to exploit it further. Consumers are learning to expect more from retailers’ websites. Without the added dynamic of engaging customer content in the future, the loyal online customer base that retailers have worked so hard to foster is at risk of browsing elsewhere.