Strategic Perspective - WLN Model of Reader Loyalty

11.2.2. Strategic Perspective - WLN Model of Reader Loyalty

  After estimating the model and calculating the indices, a generic strategic priority map can be created where total effects and performance indices for each of the five drivers are included.

  Strategic Priority Map – Generic Model Strategic Priority Map – Generic Model

  70 70 Cultural Cultural

  Others Others

  e e

  n n c c

  68 Local News 68

  Local News

  Housing Housing

  Image Image

  Impact on satisfaction loyalty Impact on satisfaction loyalty

  Figure 19

  The generic priority map (figure 19) shows the five drivers’ situation in relation to each other and signifies, which areas should be prioritized to maintain and improve reader loyalty of WLNs. As shown in the priority map above, the WLNs perform well, with the exception of image, which has scored low on performance and high on importance for satisfaction loyalty. The analysis below will assist in supporting the overall strategic considerations in connection to all drivers positioned in the map.

11.2.2.1. Threats

  Image is positioned in the threats quadrant, which is the area that should receive the highest priority in the industry’s future strategy to achieve and maintain loyal readers. Through the development of the generic model it is evident that image is the most important driver of satisfaction loyalty, but image does not perform well.

  The two remaining measurement variables of image are almost equally important. It is

  very important to pay attention to Q 30 since it concerns WLNs’ unique selling proposition,

  of making the readers capable of engaging in conversations about local matters in their of making the readers capable of engaging in conversations about local matters in their

  As reviewed in the empirical research, image has an influence on the readers’ loyalty but image is also a difficult area to determine in connection to WLNs. 286 For most WLNs image is not a focus area but something that is just determined by the overall reputation. WLNs have the reputation of being an old type of media that “just” cover the local news. In contrast to “normal brands” the high importance of image is not an eye-catching feature for WLNs. Therefore the WLNs do, in most cases, not naturally put emphasis on image. It is therefore recommended that WLNs improve their image performance for the industry as well as for the individual brands. All WLNs should put emphasis on image and pursue an improvement of this. It is essential to focus on delivering an image that is well fitted to the readers.

11.2.2.2. Strengths

  Local news is positioned in the strengths quadrant, which is the area that is highly positioned on both indicators and should be kept under supervision. It is important to maintain and develop the positive position in order to keep the readers loyal towards the WLN. As argued in the empirical research in section 7.1.2., local news was assumed to be one of the main specific building blocks for the WLNs, which this priority map evidently supports. It is important for the readers that local news is a part of the WLN and local news has one of the highest indices and performs adequately. This view is supported by many of the respondents mentioning in the questionnaire that local news is important to them, and that it is vital that the WLN maintain its local outlook. The WLNs are aware of the fact that local news is important for the readers and that is probably why local news performs well. Lone Søndergaard (Head of Development at POLA) supports the notion of local news being the core competency of WLNs and a lot of attention is given to this area of competence. 287

  It is recommended that local news be maintained and developed over time by the WLNs. Since local news is one of the core competencies of WLNs, it is also recommendable to pursue an enhancement of the performance within this area. This is because the feature is important for the readers and with a performance index of 69 there is still room for improvement. The readers retrieve information about local news in order to be up-dated on local community matters and the area can be optimized by the WLNs. Optimization

  286 Appendix 12 - E-mail correspondence with Lone Søndergaard, 10 May 2007 287 Appendix 12 - E-mail correspondence with Lone Søndergaard, 10 May 2007 286 Appendix 12 - E-mail correspondence with Lone Søndergaard, 10 May 2007 287 Appendix 12 - E-mail correspondence with Lone Søndergaard, 10 May 2007

  Monitoring of local news is needed and improvement is recommended in order to make sure that the reader loyalty of WLNs is maintained and preferably increased, moving the readers up the Ladder of Loyalty.

11.2.2.3. Opportunities

  Housing, as well as cultural offers and sport (culture), and others are positioned in the opportunities quadrant.

  Housing scores low on impact and is the driver with the least total effect on satisfaction loyalty. Yet, it has a high performance, meaning that it is not essential for the readers, but the WLNs are doing well in the housing area. In the empirical research it was presumed that housing would be important to the readers. This was mostly due to the curiosity of following the real estate market but also due to the increasing interest in house and interior decorations. However, this was proven not be the case, since the research shows that housing does not have as high an impact on satisfaction loyalty as first assumed. It can be due to the fact that the respondents had difficulties answering the questions correctly because they do not have e.g. articles about housing in their WLN.

  All in all, it is recommended that the WLNs seek to move housing from opportunities into strengths, thereby trying to change the readers’ perception into finding housing more important. This could among others be pursued by publishing more articles on interior decoration, indoor climate, suggestions to improvements on the house. These are all aspects that concern a wide variety of the readers and not only the readers who are buying or selling a house (as it seems to be the case with housing adverts).

  Even though the driver does not seem to be important to readers, it is not recommended to completely neglect the area, since a lot of the advertising money comes from the housing adverts. Of course, further research on the readers’ interests within this area should be conducted prior to an enhanced effort within the driver housing.

  Culture has the same performance index as housing and is very close to local news and others. Only 1 point separates them, which is not a significant difference. However, culture does not have a large impact on satisfaction loyalty. The same applies for culture as it did for housing; the WLN is good at providing culture, but at the importance Culture has the same performance index as housing and is very close to local news and others. Only 1 point separates them, which is not a significant difference. However, culture does not have a large impact on satisfaction loyalty. The same applies for culture as it did for housing; the WLN is good at providing culture, but at the importance

  It is recommended that the WLNs try to influence the readers’ perception of the culture content in order to score higher on impact and move culture into the strengths area, since it an area where they do perform well after all.

  The driver others is likewise placed in the opportunities quadrant and should thereby not have the highest priority in the optimization of WLNs. However, this area should not be neglected, since it possesses great opportunities for a future increase in satisfaction loyalty, if the matter is dealt with wisely. Others has a performance index of 69, which is the same for local news. Thereby the readers have evaluated the WLNs to do equally well in these two areas. However, the total effect of others on satisfaction loyalty is 0.190, which is less than image and local news, but more than cultural offers and sport and housing. These values place others as an opportunity, but very close to becoming a strength. It should therefore be pursued to influence the readers perception of others importance and maybe create some features within this area, which can enhance loyalty.

  It should be noted that this variable is widespread in the sense that it contains many different aspects. When conducting research and developing analyses of individual WLNs the content of others should be fitted to match the WLN in question. E.g. some WLNs contain entertainment pages with cross-word puzzles, Soduko etc. Others have a tv- guide, some have large car- or garden supplements to their WLN, etc. When including issues that are important for the individual WLN the impact on satisfaction loyalty most likely increases. The questions remaining in the generic WLN Model of Reader Loyalty all evolve around content that is relevant in all WLNs; “Names”, sales and offers, and layout. These are of course important, but additional questions should be posed (from the ones presented in the conceptual model) when they are thought to have an impact on the readers’ loyalty.

  There is room for improvement, specifically in the image variable it is vital to improve performance. Culture, others, and housing are not evaluated to be of high importance, There is room for improvement, specifically in the image variable it is vital to improve performance. Culture, others, and housing are not evaluated to be of high importance,