Politico’s 96% Paid Subscription Renewal Rate Not As Crazy As It Seems

Sorry Adweek, but your big ‘scoop’ this week revealing that Politico’s first year paid subscription renewal rate is 96% isn’t as surprising as you

Sorry Adweek, but your big ‘scoop’ this week revealing that Politico’s first year paid subscription renewal rate is 96% isn’t as surprising as you think.That’s because the subscription service is Politico Pro (emphasis on the word “pro”) with site license deals starting at $8,500 year. Our industry-wide data shows it would be insane for any publisher — online or off — to expect to achieve a 96% renewal rate for a subscription service sold to individuals, whether consumers or businesspeople. But, site license or group subscriptions are a completely different matter.96% is a good solid renewal rate for Politico’s offering. In a less newsworthy B2B niche we might expect an 85-90% license renewal rate, but hey, there’s a major national election coming up.Actually the only surprising thing about Politico’s renewal rate is the mention of “first year.” Guys, once your price point is high enough to be a considered purchase by a committee and you need a sales rep (at least inside sales) to close new deals, you should be pushing two-year accounts as hard as you can. That way your reps can work new deals instead of turning around to work on renewals continually.Just saying. By the way, if you’d like to know more about selling group subscriptions, Subscription Site Insider has a toolkit here.

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