Avoiding declining sales figures

IN Blue Yonder Events & Awards — 27 October, 2015

The numbers are literally hot off the printer. On October 20th, the figures on papers sold by the most important regional newspapers in Germany came out. As in past years, the figures are deep in the red. Almost all the daily newspapers in Germany are losing readers in significant numbers. The situation is particularly serious in the German capital of Berlin. The "Berliner Kurier" and the "B.Z." have both lost between seven and eight percent of their overall sales.


At the same time, publishers who intensively focus on every single subscriber can work against this trend. Strategy and software help the publishers do this. The reason is that customer cancellations are not spontaneous decisions. They are often very foreseeable, happening before vacations, at the end of a business quarter, or after a move, as examples. One software product includes many added factors in its calculations, including wage and price developments as well as sales figures for products like tablet PCs, and other products. All arguments for a purchase of a newspaper, but also for a cancellation are taken into account by the predictive analytics software. At the push of a button, publishers obtain an exact forecast of which customers will need to be a bit more intensively managed.

German media company Axel Springer has already done this and has used predictive analytics to gain new insights for its marketing strategy. The question is, how high is the individual probability of cancellation for a specific reader? The software identifies the way in which the customer has first become a subscriber as a relevant factor for determining the risk of cancellation for that customer. Those who subscribe out of genuine interest generally remain loyal. But those who were won over by an ad campaign tend to also cancel their subscription quickly too. This is a reason for the publisher to think over the design of their own ad campaigns and helps them save money.


The view of the customer lifecycle brings to light insights that go far beyond the individual customer relationship.

Chief Editor of "BILD Zeitung," Kai Diekmann will speak on October 30th at Harvard University in Cambridge, Massachusetts, USA, with the CEO of Blue Yonder, Uwe Weiss, about these insights. Together with Dr. Miriam Meckel of "Wirtschaftswoche" they will provide their thoughts on Industry 4.0. Also at the podium at Harvard with Uwe Weiss will be Dr. Helmut Ludwig, Global Executive Vice President of Digital Enterprise of Siemens PLM, and Stephan Gemkow, CEO of Franz Haniel & Cie.GmbH.

Blue Yonder Blue Yonder

We enable retailers, consumer products and other companies to take a transformative approach to their core processes, automating complex decisions that deliver higher profits and customer value using artificial intelligence (AI).