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Archive for the ‘The Inside Story’ Category

Asking for your help with e-commerce and online subscriptions

Thursday, March 4th, 2010

We sell magazines. We have never proclaimed to be e-commerce experts, and we don’t have millions of dollars to throw at acquiring these skills like some of our competitors do. That is why it is with some excitement but also trepidation that we have seen the growth of our online subscription business far outstrip any of our physical stores.

Some of you folk, who are much cleverer than we are, live and breathe in this space. Can we ask for your help and advice?

We are looking at updating and improving our site, and in going through all the stats from Google Analytics, we have noticed that our drop off from people entering our cart through to final purchase is pretty high.

What is normal? Does anyone have some benchmarks that they could throw our way?

We thought we would lose heaps of people through the “fill in your details” steps. Subscriptions are a little more complicated than a normal book purchase because you often send it to someone else rather than yourself. However, our drop off at these points in the transaction process is minimal. Rather, most people who do abandon our purchase process do so at the final point of purchase.

That is, they take the time to add a magazine subscription to their cart, signup for an account, provide us with all their details, get to the final payment page, and then piss off elsewhere.

We were really surprised by this. Not so much by the quantum of abandonment, but the point of abandonment. We realise that many people are going to “chicken out” prior to pressing pay, but are there things we could be doing to improve our conversion?

Some of the things we are about to implement include:

  • Integrating PayPal
  • Highlighting that our payment system is “secure”
  • Increasing the size of the Pay Now button

We already changed the colour of our checkout button in the shopping cart from red (part of our brand identity) to green, and saw via A/B testing that conversion from that point increased.

Should we change from “pay now” to “buy now”? Any other clever ideas? Help!!!

If we end up implementing any individual’s suggestion, we’ll happily provide you with a lifetime supply of magazines ala Mr Wonka. Ok, maybe not, but how about a $100 mag nation voucher instead???

The Yoda of Magazines

Monday, February 15th, 2010

Meet Ravi. He is one of the two founders of mag nation. Much less in the public eye than I am (Sahil), he is every bit a driving force of mag nation as is the guy writing this blog. He also happens to be one of the smartest blokes around.

Ravi is a medical doctor. Moreover, he is a Pathologist. So, when he’s not busy building a retail empire, he diagnoses rare diseases in his spare time, which is a useful skill to have in this industry. Okay, not really.

When he migrated to New Zealand from India, the New Zealand government wouldn’t recognise his qualifications. (Which is pretty crazy stuff when you consider that could have taught many of the local doctors a thing or two about Pathology, having dealt with all sorts of weird diseases during his time on the sub-continent. But, I digress…)

Because he wanted a different life for his family, Ravi left India and gave up years of study and a thriving private practise in the process. Unable to practise medicine in New Zealand and with no non-medical business experience behind him, he bought a small convenience store called Mega Mags in Queen St in Auckland. From there, the mag nation concept was born.

This bloke is a rocket scientist. Genius mind. He is also my uncle. And he is incredibly precious to me. My second child’s middle name is in honour of the guy.

When we began to plan what would later become mag nation, he did everything he could to talk me out of it. He told me that I had a real future in the corporate world, family responsibilities, and that I shouldn’t risk everything on a dream. Only when I proved my stubbornness did he relent and welcome me to his world of being broke.

At 55 years old, Ravi is no spring chicken. In fact, a publisher we often deal with referred to him recently as ‘the Yoda of Magazines’. He is known globally (he has spoken twice at Colophon) and there are few people with more knowledge of magazine retail supply than he has. Yet, he is also remarkably young in his outlook.

For a brand that takes such a different and at times irreverent approach, people are often surprised to find out that neither of the founders are in their 20s.

Virtually all the mags that you see in mag nation are there because Ravi decided that they should be and could be. He is the sort of bloke who can memorise spreadsheets worth of data and regurgitate pricing and margins at a moments notice. He is also the guy who when discussing creating subscription terminals in-store and how to avoid theft of equipment, suggested that we glue the mouse to the table. It took him 30 seconds to realize why the rest of us where wetting our pants. We all have our slips.

More than all else, he is a good bloke. If you are going to bet your entire future on a business, might as well be with someone you trust. There is no blame, recrimination or singular credit amongst the two of us. Though all of this is totally irrelevant to the average customer walking into our stores, I genuinely hope you feel something intangible but special when walking into a mag nation store.

If you do, then you are feeling the presence of the Yoda of Magazines.

(‘Ravi Yoda’ illustration by the inimitable Tyson Savanah from our Elizabeth Street store.)

Some reflections on our Christmas promotions

Monday, January 4th, 2010

In case you weren’t paying attention, we ran a number of promotions on our website this Christmas, that we wrote about pretty extensively here.

One of these involved refunding one in every 100 customers who purchase a magazine subscription from magnation.com. We did this for the last few weeks leading up to Christmas and it went absolutely swimmingly… scores of happy customers have responded with pure delight to the news that the cost of their subscriptions has been refunded to their credit cards.

The second—the person who buys the most subscriptions gets them all for free—also went well, albeit somewhat differently to what we’d expected. A bit of an experimental promotion, and one that we were never really sure how it was going to pan out.

We blogged about the difficulties of setting up the terms and conditions associated with this offer and trying to protect ourselves (somewhat!) while still making it a fun and interesting promotion. So as to keep us from the mercy of some rogue magazine fiend with a black Amex, we decided to limit it to 30 subscriptions in total.

When you consider that the average sub we sell (across the whole site, mainly imported air freight titles) is $100, then this still adds up to a pretty hefty sum. Then, in the case that two people BOTH took out the same maximum number of subscriptions, we specified that we’d give the prize to the person who got in first.

Did we see a rise in the average number of subs taken out? It’s hard to say. Christmas is an absolutely mental time in the magazine subscription market and when you’re a small, growing business like we are it’s hard to compare one month of the year with that same month in the year prior with any degree of certainty. What’s sure, however, is that most people bought one or maybe two subscriptions. Many of our customers bought three or four subs and a mere two people bought five.

That’s right—the winner of this promotion bought a mere five subs (albeit expensive ones, totalling around $NZD1500).

The feedback we had from many of our customers while we were running this offer is that they would have considered having a crack and taking out as many subs as they could possibly afford… were it not for the fear that some mag hoarding tyrant might swoop in at the last possible moment and take out hundreds of subs, leaving them mag rich and cash poor. Of course, this was never really a possibility due to the terms and conditions stipulated above… but this, nevertheless, this was their fear and it is rarely our place to dispel the irrational fears of our customers.

And so for us, did this promotion make good business sense?

The truthful answer is that we really have absolutely no idea. The point here is more that we tried something a bit different, had a bit of fun and in many ways that encapsulates just about everything that we’re trying to do here.

As for the winner? He had absolutely no idea the promotion was running at all.

Why many magazine retailers don’t care about Christmas

Thursday, December 17th, 2009

A lot of retailers do a massive proportion of their overall yearly sales at Christmas. For some, it is the only month in which they make money. Christmas subsidises all the other months of hardship and toil.

Magazines are quite different from this perspective. Traditionally, magazines are not really thought of as a Christmas present. How can you buy for your girlfriend a copy of Vogue Australia in early December when the next one might come out in a few weeks time? Also, many people see magazines as pedestrian. Not the sort of thing that excites when unwrapped. Overall, magazines are seen as a selfish purchase and not the ideal gift.

While this may be true for newsagents, mag nation loves Christmas. We are a gift destination. It is not the mainstream titles that attract people, but those hard to find niche mags that almost replicate the giving of a book. And often at half the price.

Don’t get me wrong. Magazines for “self” also spike at Christmas, especially as people want to stock up for the beach, the plane, or wherever else they may be going, but gift purchases drive our volumes leading up to the holidays. If you have a designer friend, the specialised choices we offer are endless. If you are looking for that perfect something for a fashion fanatic, gaming fiend, petrol head, or tattoo enthusiast, we have just the thing. And these niche publications catering to all these special interests are often unusual, as well as works of art in themselves. Quite different to the stuff you will find in the mainstream locations.

In addition, subscriptions go nuts over Christmas. The idea of giving a loved one a gift that keeps on arriving over the course of a year is quite cool, and immensely popular.

Which is why Christmas is so important to us, compared to most mag retailers. They don’t stock the niche titles which drive gift destination traffic, nor do they offer online subscriptions via a dedicated subscription website.

Christmas reminds me of just how different we are from so many others in this industry. Perhaps this is why we are growing in the magazine category while the others are slowly retreating from it…

Freebies and a request for help – we need your opinion

Wednesday, December 16th, 2009

I need your help. As you would expect from the mag nation chief magazineologist, I keep an eye out on what other magazine subscription sites are doing. Christmas is the key time for mag subscriptions, and every subscription provider dials up the rhetoric on offers and freebies.

We too are offering free stuff if you subscribe to magazines through our website. We do it because we think customers like it.

However, where we are different is in terms of size and independence. We are not affiliated with any publisher. Nor are we a massive corporate who can afford TV advertising. This is where I need to ask your opinion…

The other guys are offering a chance to win a car, a fantastic exotic holiday, a trip to the moon etc… But only one or two people win this. Most of the mag nation staff don’t even own a car, so we definitely ain’t giving one away. Therefore, we are offering what we can… 1 in every 100 subscriptions purchased from us is for free. This means that lots of people will win something small, as opposed to 1 person winning something big. We have already contacted a bunch of people and delighted them by telling them that their subscription purchase has been fully refunded to their credit card.

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Does this work better for you? Or do you prefer the tattslotto type odds and pay off? Or maybe you don’t give a shit and the freebies are just a distraction? What do you think we should be doing from a marketing perspective to entice you to consider us over and above the others? Please keep in mind that we have very limited budgets!

Your thoughts would be greatly appreciated. While it is too late for us to change anything this year, perhaps we need to start saving up for next year to offer you a fantastic camping trip in my mum’s back yard…

Cameras in the Toilet

Tuesday, December 15th, 2009

As a young company, we are striving to make ourselves more professional. If we are to build any real scale, we will have to improve our disciplines and structures. But… never at the expense of character and soul. Which is why, despite the plain wrongness of what happened last week, I can’t help but laugh and celebrate that harmless shenanigans can be accepted at mag nation.

One of our employees, who will remain nameless, was last week rummaging around in our storeroom , and found a spare “dome camera” used to monitor our stores against theft. In his childish wisdom, he got a ladder and some Velcro, and stuck the camera high up on the wall of our staff toilet. It was high enough that not everyone would see it straight away.

The camera was not connected to anything. There are no wires running to the toilet. However, all hell broke loose. Some of the girls discussed suing us. Our team was appalled. Our other MD was even convinced to play along, saying that it was the only way to curb employee theft!!! And the staff believed him.

When the responsible staff member came clean and told everyone that the camera was non-functional, there were laughs all round. It frankly was damn funny. Even after we all knew it was a prank, it was still hard to do our business with a camera staring down at you. I asked him to remove the camera yesterday. Too many issues of stage fright!

I am sure that some corporate lawyer type will tell me that the prank was simply not on. I agree that it wasn’t very smart, but it did make us all laugh. I like that mag nation allows us to laugh. We want to be a serious business. But it’s nice to laugh too.

FOUNDER OF MAG NATION AVOIDS GOING TO JAIL

Tuesday, December 1st, 2009

In a previous blog post, we mentioned our ridiculous Christmas subscription offers. One in particular has caused us some angst.

We put up the following offer:

The person who buys the most magazine subscriptions between the 20th of Nov and the 20th of Dec gets them all for free.

We also mentioned in that blog post that we had thrown in some terms and conditions to satisfy our “legal department”, which is me. People still mistake us for a large multi-national organisation, forgetting that mag nation is obstensibly run by two guys. We don’t have lawyers and accountants and other smart people to help us run our business. We make do with the four hands that we have. Between us, not each.

Luckily however we do have some friends. So Adrian, who is a lawyer, and a smart one at that, emailed me and told me that having read our terms and conditions, we were being a little naughty.

We said in relation to this offer that if two or more people had bought the same number of subscriptions, that we would choose one at random to win the prize. Bomp Bow (I have no clue how to spell that you lose noise, but you know what I mean). According to Adrian, this is a “lottery” as it has an element of chance involved. We therefore might need a licence to do this. And a different one for each State.

Screw that. I wouldn’t even know where to apply for one. Sooo – we are changing the terms and conditions. If two or more people buy the same number of subscriptions, then the winner for the purposes of this offer will be the one that purchased the first of their subscriptions before any of the others.

There you go. No ambiguity, chance or lottery in that. Bloody lawyers. Bloody government and need for stupid licences. Just impede honest retailers from having fun and putting up crazy offers. Thanks Adrian. You created lots of extra work for me when I doubt anyone would have even noticed. At least I won’t go to jail now.

Magazine videos are go!

Monday, November 30th, 2009

One of the perennial issues we face as internet retailers is the vast chasm of difference between the sensorially rich in-store experience and the comparative blandness of shopping on the web. A lot of big words there, but in essence, in our stores you can touch stuff, on our website you cannot!

Moreover, we allow our customers to spend as much time as they want flipping through all the magazines they want.

Apart from the fact that we’ve got the hugest range of magazines around, this is one of the big things that sets us apart from the traditional ‘THIS IS NOT A LIBRARY’ grumpy suburban newsagent of your youth.

It is this policy that lets our customers experience the rich and varied range of international and obscure magazines we sell in addition to the ones that they already know and love.

We’ve made a big step towards providing more of a taste of this on our website today, as we launch flipthrough videos of many our popular titles. With a huge amount of help from our amazing interns Rui Qing and Cera (who have spent untold hours recording page-turn after page-turn) today we’ve added video flipthroughs for close to 100 different magazines on the site.

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Try it, for instance, on Nylon, Wooden Toy, The New Yorker (okay, it’s mostly text), Wire and heaps more. Heck, even Nuts has a video!

Please make sure to let us know what you think about the videos, and for that matter, anything else we can do to make our website nearly as good as our stores.

Engaging Our Customers – Give Us Your Insights

Tuesday, September 1st, 2009

Tomorrow morning I am speaking at the Melbourne Spring Fashion Week Breakfast Series. I have no idea if tickets are still on sale or not, but you can check out the program and enquire here if you are interested.

I was somewhat surprised by the invite. Despite the persona underlying mag nation, I am probably one of the least qualified blokes to speak at a fashion event that you could ever imagine. My super stylish Spanish wife can’t stop laughing at the thought.

Luckily, I have been spared from embarrassment thanks to the topic up for discussion. Here is what is says on the MSFW website:

An exceptional line up of speakers will share their experience and knowledge on what it takes to create and maintain customer relationships throughout the retail lifecycle – from the temptation and seduction of courting new shoppers, through love and marriage, and how to ward off separation.

Learn more about the most evolved, savvy, feature-rich retail brands and online entrepreneurs and how they connect to their consumers’ desires at every touch point to seize their brand’s potential and build relationships that last.

We feel honoured to be thought of in this light. However, they have definitely put us in the wrong category. There are four breakfasts; the first on Temptation and Seduction was today, while tomorrow is Love. We have some really nice relationships with our customers and I would be happy to admit that with some of these people, there is genuine love which has gone beyond the courting stage. However, the vast majority of folks have never even heard of us. Ask outside the fashion and urban savvy crowd, and people will think that mag nation sells mag wheels (we still get calls about this).

We think it is a little premature to place us in the Love category (hopefully one day we will justify this tag). That said, I will do my best to talk about how we try to engage our customers. The problem with this is how do you talk for 15 mins on the following points:

•    We talk to you

•    We listen to you

•    We respond to you

•    We enjoy ourselves and let you be a part of it

•    We are honest and open

The first 3 points are customer service 101. There is absolutely nothing new in any of that. Perhaps the greatest impact has been the last point. We constantly get told that we are really open and that people like this as it gives them insight into the personality of who mag nation is. We received massive amounts of feedback both online and offline from our first blog post, and perhaps this is the sort of thing we do a little differently from other brands.

In any case, I better now work out what I am going to say tomorrow. I think it will be a pretty discerning crowd, and 5 bullet points ain’t going to cut it. If anyone has any suggestions about what works (or doesn’t) in terms of our engaging with customers, please let us know. A very dangerous thing to ask in light of this particular post, as it will smell really bad if we get zero comments, but perhaps this is all part and parcel of us putting ourselves out there and taking risks.

Call out for interns – we want to love you

Friday, August 21st, 2009

We need help. We have such grand plans and amazing ideas that we are ready to implement but we simply don’t have the people power to get some of it done. We could do some of it ourselves, but we aren’t designers, photographers or all-round super creatives.

Stop complaining and go hire some more folk.

I love it when we have hecklers in our blog posts. Problem is you idiot heckler that we don’t have the dosh to simply go out hiring new people. Generally, people like to eat and they normally ask for lots of money in return for their services so they can eat. Or buy other necessities such as magazines.

What about students and people breaking into their professions – they don’t need to eat!

Great idea Mr Heckler. Completely forgot about students and emerging creatives and their ability to feed themselves on hope, optimism and a sense of adventure.

Ok people that fall into this category. We want you. Three Internships are now ready for the taking. We will pay you in love and you will become better people. Ok, not quite true. We will pay you something token that looks and smells like money but actually can be used as legal tender for magazines at your favourite magazine store. You can also add the work to your already incredibly impressive portfolios; we’ll recognize your herculean efforts on our blog, and do other things that that might be able to catapult you onto the world stage. Or maybe the creative equivalent of the local pub scene.

We are looking for a Designy type, a Photographer, and a Video Admin Assistant. The wonderful folk at iSpyStyle have all the details of what is involved and you can check them out here. You have to be Melbourne based as the stuff you will be photographing and videoing is based here.

We hope this is the beginning of a long and passionate relationship with you. Or maybe just passionate. Or maybe even short and dull as long as we all get off. Beggars can’t be choosers.