SPR-732 SEPTEMBER 2016 Arizona Highways Magazine: Tracking Shifts in Reader Habits Arizona Department of Transportation Research Center Arizona Highways Magazine: Tracking Shifts in Reader Habits SPR‐732 September 2016 Prepared by: Diane Hart Ginn, Debra C. Pryor, and Deborah Meyers Partners In Brainstorms, Inc. 3420 E. Shea Blvd, Suite 130 Phoenix, AZ 85028 Published by: Arizona Department of Transportation 206 South 17th Avenue Phoenix, AZ 85007 In cooperation with US Department of Transportation Federal Highway Administration This report was funded in part through grants from the Federal Highway Administration, U.S. Department of Transportation. The contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the data, and for the use or adaptation of previously published material, presented herein. The contents do not necessarily reflect the official views or policies of the Arizona Department of Transportation or the Federal Highway Administration, U.S. Department of Transportation. This report does not constitute a standard, specification, or regulation. Trade or manufacturers’ names that may appear herein are cited only because they are considered essential to the objectives of the report. The U.S. government and the State of Arizona do not endorse products or manufacturers. Technical Report Documentation Page 1. Report No. 2. Government Accession No. 3. Recipient’s Catalog No. FHWA‐AZ‐16‐732 4. Title and Subtitle 5. Report Date Arizona Highways: Tracking Shifts in Reader Habits September 2016 6. Performing Organization Code 7. Authors 8. Performing Organization Report No. Diane Hart Ginn, Debra C. Pryor, and Deborah Meyers 9. Performing Organization Name and Address 10. Work Unit No. Partners In Brainstorms, Inc. 3420 E. Shea Blvd, Suite 130 Phoenix, AZ 85028 11. Contract or Grant No. 12. Sponsoring Agency Name and Address 13.Type of Report & Period Covered Arizona Department of Transportation 206 S. 17th Ave. Phoenix, AZ 85007 FINAL (08/14–07/16) 14. Sponsoring Agency Code 15. Supplementary Notes Project performed in cooperation with the Federal Highway Administration 16. Abstract The primary mission of Arizona Highways magazine (AHM) is to promote travel and tourism in Arizona. The magazine has conducted a subscriber survey approximately every five years since the early 1990s, with the last survey conducted in 2009. However, no longitudinal analysis of survey data has ever been conducted to identify trends over time. This study has provided information regarding the reading habits of AHM subscribers, their interest in AHM editorial content, and their opinions regarding their subscriber experience. Findings from the study also provided insights into AHM customer loyalty, engagement, and purchasing behaviors; the perceived value of subscribership and trust in the AHM brand as a credible source for travel information; reader likelihood of recommending AHM to others; and the influence of AHM on tourism. Finally, this study also provided information obtained from former AHM subscribers, including their primary reasons for nonrenewal and suggestions regarding benefits or offers that would encourage them to reconsider subscribing. Recommendations were developed to assist AHM in adjusting its scope and focus to respond to changing reader expectations and preferences, particularly those in the 25–54 age group, and to support ongoing improvement in AHM’s marketing and promotion activities and customer service processes. The recommendations are presented within a suggested implementation plan consisting of short‐, mid‐, and long‐term actions. The research findings can be used by AHM to inform development of subscriber acquisition and retention strategies and to ensure that business planning, editorial, and marketing strategies align with reader expectations of AHM regarding the inherent trust and credibility of its brand. 17. Key Words 18. Distribution Statement Arizona Highways Magazine, travel, tourism, Arizona, market research, subscribers, customer service This document is available to the U.S. public through the National Technical Information Service, Springfield, Virginia 22161 19. Security Classification 20. Security Classification 21. No. of Pages Unclassified Unclassified 98 22. Price 23. Registrant’s Seal CONTENTS Introduction ................................................................................................................................................. 1 Objective ................................................................................................................................................ 1 Data Collection Methodology ...................................................................................................................... 2 Subscriber Survey .................................................................................................................................. 3 Former Subscriber Survey ..................................................................................................................... 3 Subscriber Focus Groups ....................................................................................................................... 4 Key Findings ................................................................................................................................................. 5 Theme 1: Trust in AHM Brand ............................................................................................................... 5 Theme 2: Influence of AHM on Arizona Travel and Tourism ................................................................. 7 Theme 3: Subscriber Esteem and Loyalty .............................................................................................. 8 Theme 4: Subscriber Engagement and Purchasing Behaviors .............................................................. 9 Theme 5: Subscriber Reading Behaviors and Preferences .................................................................. 10 Theme 6: Subscriber Suggestions for Improvement ........................................................................... 13 Recommendations ..................................................................................................................................... 15 Top‐Priority Recommendations .......................................................................................................... 15 Second‐Tier Recommendations .......................................................................................................... 17 Short‐Term Implementation ......................................................................................................... 18 Mid‐Term Implementation ........................................................................................................... 20 Long‐Term Implementation .......................................................................................................... 20 Appendix A: Subscriber Survey Findings ..................................................................................................... 23 Appendix B: Supplemental Analysis of Arizona Highways Magazine Subscribers...................................... 47 Appendix C: Former Subscriber Survey Findings ........................................................................................ 53 Appendix D: Subscriber Focus Group Findings .......................................................................................... 63 Appendix E: Analysis of Arizona Highways Magazine Promoters............................................................... 81 v LIST OF ABBREVIATIONS, ACRONYMS, AND SYMBOLS ADOT ................ Arizona Department of Transportation AHM ................. Arizona Highways magazine MPA .................. Association of Magazine Media (formerly the Magazine Publishers Association) NPS ................... Net Promoter Score vi INSIGHTS INTO ARIZONA HIGHWAYS MAGAZINE READER HABITS INTRODUCTION The primary mission of Arizona Highways magazine (AHM) is to promote travel and tourism in Arizona. Geared toward an audience with high interest in Arizona's history and culture, this monthly publication highlights unusual outdoor experiences, expert travelogues, and historical stories and features spectacular, award‐winning photography that has gained the magazine worldwide recognition. According to the Arizona Highways website, the publication currently has over one million readers and circulates in all 50 states and in two‐thirds of the world’s countries. The magazine has conducted a subscriber survey approximately every five years since the early 1990s, with the most recent survey conducted in 2009. However, no longitudinal analysis of survey data has ever been conducted to identify trends over time. As noted by the Task Assignment for this study, subscriptions to Arizona Highways magazine have declined over the past decade, as they have with print media in general due to changing demographics and competition from digital media products. It should be noted that 2009, the last year AHM conducted a survey of subscribers, was also the year in which the U.S. economy entered a major recession. As would be expected, consumer demand for magazines in general contracted as many Americans cut discretionary spending in the face of lower disposable income. Even among more affluent households, subscriptions and single‐copy sales fell, along with reduced advertising revenues. However, as disposable income has slowly been increasing since 2009, external competition from digital content has also been growing. According to the Association of Magazine Media (MPA), magazines that will succeed and experience moderate growth in the future will focus on niche markets and embrace digital formats and online extensions. For Arizona Highways to succeed with its niche market, the magazine needs to fully understand the characteristics, profiles, and reading habits of its subscribers, both print and digital. Objective Consequently, the overall objective for this study was to provide AHM staff with information in four general areas:  Demographics of current AHM subscribers  Primary reasons for nonrenewal by former subscribers  Benefits and offers that would encourage former subscribers to reconsider subscribing  Strategies for adjusting feature content and marketing to respond to the changing expectations and media preferences of AHM subscribers, particularly those in the 25‐54 age group 1 Based on that objective, the study was designed to obtain information about and develop insights into the following characteristics, preferences, and behaviors of AHM subscribers:  Reading habits  Interest in AHM editorial content, including monthly features and other subject content areas  Opinions about their AHM subscriber experience  Customer loyalty, engagement, and purchasing behaviors  Perceived value of subscribership and trust in the AHM brand as a credible source for travel information (e.g., magazine, AHM Travel Guides)  Likelihood of recommending AHM to others  Influence of AHM on tourism.  Lifestyle data, including use of technology devices, social media tools, and subscriptions to other magazines The study also investigated characteristics and opinions of AHM former subscribers, such as factors contributing to nonrenewal, specific benefits that might encourage renewal, perceptions of AHM, and likelihood of recommending the publication to others. DATA COLLECTION METHODOLOGY A comprehensive online survey of current subscribers was conducted to obtain information on AHM reader habits, interests, and preferences. To complement the data from current subscribers, a brief survey of former AHM subscribers was also conducted. Additionally, two follow‐up focus groups were held with select subscriber survey respondents to explore specific topics related to AHM reader preferences, awareness and use of AHM products, and general opinions regarding AHM and competitor publications. Data collection commenced in July 2015 and concluded in February 2016. On completion of each data collection stage, detailed information on the participants and findings was provided to the AHM staff. These presentations, along with documentation of participant responses, are provided as appendices to this report. 2 Subscriber Survey The criteria governing compilation of the recruitment list for the AHM subscriber survey excluded individuals with one or more of the following characteristics: non‐U.S. mailing address, complimentary magazine subscription, had received fewer than six issues, and had requested that contact information not be shared with outside parties. As an incentive to complete the survey, subscribers were offered a 35 percent discount that could be applied to AHM online or in‐store purchases made through December 31, 2015, and were automatically entered into a drawing for an AHM gift basket that included selected products valued at over $200. The survey generated response from 897 current AHM subscribers, representing 5 percent of the targeted audience of current subscribers and a representative sample of the AHM subscriber file used for recruitment. Subscribers who had received seven to 36 issues of AHM represented 33 percent of the recruitment list and 31 percent of survey respondents; those who had received 37 to 60 issues represented 8 percent of the recruitment list and 13 percent of survey respondents; and those who had received 61 or more issues represented 59 percent of the recruitment list and 56 percent of survey respondents. At the request of AHM staff, a detailed analysis of the findings by number of issues received (7 to 36 issues, 37 to 60 issues, and 61 or more issues) was performed. Findings from this analysis are presented as Appendix B of this report, which is available from the ADOT Research Center upon request. The 897 completed surveys represented a sampling error margin of ±3.24 percent at the conventional 95 percent confidence level. Demographic characteristics of survey respondents were as follows:  62 percent male  43 percent between the ages of 65 and 74, 40 percent ages 35 to 64, 16 percent age 75 and older, and 1 percent ages 18 to 34  64 percent lived in Arizona either full‐time or part‐time  38 percent had lived in Arizona for 20 or more years, 13 percent for 15 to 19 years, 17 percent for 10 to 14 years, and 33 percent for less than 10 years Detailed information on the current subscriber survey methodology, participants, and findings are provided as Appendix A of this report. Former Subscriber Survey An additional goal of the study was to obtain supplemental information regarding former subscribers, including factors or dynamics contributing to nonrenewal, use of tools such as the AHM website, benefits that could potentially incentivize renewal, and the likelihood of recommending AHM to others. 3 The target audience for this brief online survey consisted of former subscribers who had received 12 to 24 issues and those who had received 37 or more issues. The criteria governing compilation of the AHM former subscriber survey recruitment list were similar to that used for current subscribers, as was the incentive offered for completing the survey: a 35 percent discount that could be applied to AHM online or in‐store purchases made through December 31, 2015. The survey generated response from 119 individuals, representing 1.9 percent of the targeted audience of AHM former subscribers. Former subscribers who had received 12 to 24 issues represented 27 percent of the survey recruitment list and 39 percent of survey respondents; those who had received 37 or more issues represented 73 percent of the survey recruitment list and 61 percent of survey respondents. The 119 completed surveys represented a margin of sampling error of ±8.85 percent at the conventional 95 percent confidence level and 7.45 percent at a 90 percent confidence level. It is important to note that the sampling error rate does not factor in adjustments for the extremely high number of bad e‐mail addresses and ongoing difficulties experienced in trying to reach members of this group, all of which reduced the universe of potentially eligible respondents. Demographic characteristics of survey respondents were as follows:  53 percent female  48 percent between the ages of 35 and 64, 39 percent ages 65 to 74, 10 percent ages 75 and older, and 3 percent ages 18 to 34  73 percent lived in Arizona either full‐time or part‐time Detailed demographic information on the former subscriber survey methodology, participants, and findings are provided as Appendix C of this report. Subscriber Focus Groups The two focus groups conducted with subscriber survey respondents were aimed at eliciting in‐depth discussion of such topics as story‐related preferences (e.g., length, interest in public interest stories); value of AHM as a travel guide resource; reader awareness of and interest in other AHM publications, including digital and printed formats; and opinions regarding the AHM website. A total of 13 individuals participated in the two groups. Detailed information on the focus group methodology, participants, and findings are provided as Appendix D of this report. 4 KEY FINDINGS An extensive analysis of the qualitative and quantitative research findings produced insights on a number of themes related to AHM subscribers’ attitudes and behaviors. “You have to have something that speaks to the rest of the world, for a particular region. If it’s not this magazine, then what is it in Arizona?” Theme 1: Trust in AHM Brand AHM readers view the publication as having set a high standard for excellence, and have similar respect for the overall AHM brand. Across the board, participants praised AHM’s quality. Nearly all current subscribers (94 percent) agreed that the AHM brand is one they trust—whether subscribing to the magazine or purchasing an AHM guidebook, they count on the AHM name for a quality publication. Former subscribers also attested to the belief that AHM is a “superior quality” magazine and one that proved a “valuable asset” while they were living in Arizona. Similarly, focus group participants lauded AHM for the quality of its publications and expressed their satisfaction with the content and photographic excellence associated with the AHM brand. Analysis of comments from former subscribers regarding what AHM could do to keep valued subscribers like them revealed that the primary reasons for nonrenewal were financial and “other” (e.g., moved out of state, cut back on all subscriptions, not enough time to read). A significant majority commented favorably on the magazine and, in a number of instances, expressed their regret in needing to cancel. The topic of AHM travel guides was explored extensively in the focus groups. Participants were asked to comment on their awareness and use of these publications and, if applicable, how their content compares with other publications that they have purchased. The majority had purchased one or more AHM travel guides and reported that they were extremely satisfied with their purchases. Participants also reported that they had purchased guides from other publishers as well as received guides as gifts, but could not recall the titles or publishers. These other guidebooks were primarily described as location‐specific and containing highly detailed information, and were used by participants to supplement the more general information—often described as “tourist‐focused” travel guide information—provided by AHM guidebooks. More than three‐quarters (78 percent) of current subscriber survey respondents reported using the AHM website, with 45 percent of all respondents using the site one to two times per year, 22 percent using it once a month or more, and 15 percent using it quarterly. Subscriber views regarding the AHM website were more extensively explored during the focus groups. Overall, the AHM website received 5 high marks (rated good to excellent) in standard metrics, such as ease of navigation, organization of site, ease of search, and ease of finding information about how to subscribe or renew one’s subscription. Additionally, participants strongly agreed with a number of statements assessing the effectiveness of the website in inspiring interest in Arizona travel destinations, influencing the decision to travel, and providing information perceived to be credible and trustworthy. Both current and former subscribers would overwhelmingly recommend AHM to others. The vast majority of subscriber survey respondents (97 percent) as well as former subscriber survey respondents (84 percent) reported that they would likely recommend AHM to others, a testament to readers’ positive regard for the magazine. When analyzing current subscriber response using Net Promoter Score (NPS), a scoring system used to define the loyalty of a firm’s customers by asking about their likelihood of recommending the firm to others, AHM received a superior NPS score of 84. The standard NPS rating scale identifies customers as either: Promoters, loyal enthusiasts who will keep buying and refer others; Passives, satisfied but unenthusiastic customers who are vulnerable to competitive offerings; or Detractors, unhappy customers who can damage the brand and impede growth through negative word of mouth. Among the current subscriber survey respondents, Promoters constituted 86 percent, Passives constituted 12 percent, and Detractors 2 percent. Overall positive regard for AHM was also evidenced by the vast majority (86 percent) of current subscribers who reported that they have had a positive customer experience when purchasing or renewing their subscription to AHM. To obtain additional insight into the AHM customer experience, former subscribers were also asked how likely they were to recommend AHM to others. These individuals gave AHM an NPS score of 48, which is considered good (an NPS of 50 or greater is considered excellent). Among the former subscriber survey respondents, Promoters constituted 64 percent, Passives constituted 20 percent, and Detractors constituted 16 percent. Positive regard for AHM was evidenced by the vast majority (88 percent) of former subscribers who rated their overall satisfaction with AHM as satisfied to extremely satisfied. Additionally, when asked, “As a courtesy, would you like us to have AHM contact you about renewing your subscription?” slightly more than one‐quarter of survey respondents (28 percent) responded in the affirmative. A detailed analysis of the respondents identified as Promoters is provided as Appendix E of this report. 6 Theme 2: Influence of AHM on Arizona Travel and Tourism AHM is playing a vital role in promoting tourism in Arizona, thus serving its mission and purpose. The vast majority of current subscribers (88 percent) reported that AHM has influenced their choice of travel destinations in Arizona. Additionally, a number of current and former survey respondents as well as focus group participants commented on the pivotal role that AHM played in their travel decisions. One individual stated, “I inherited the subscription from my parents who started subscribing in 1970 when they moved to Tucson. They saved all their issues and I enjoyed reading through them. I have driven many of the day trips and several of the overnighters.” AHM has effectively translated subscriber interest in Arizona travel destinations into motivation to travel. The vast majority of current subscribers reported that AHM has motivated them to travel in Arizona on day trips (81 percent) or multi‐day trips (79 percent). Focus group participants as well as former subscribers agreed, commenting on AHM’s ability to inspire interest in Arizona travel destinations and to effectively engage with readers through the quality of its photography, stories, and monthly features, and the authenticity of its writing. Collectively, these distinguishing attributes were described as the value differentiator that sets AHM apart from its competitors. AHM is a preferred source for travel information and meets the expectations of its readers. A significant majority of current subscribers (79 percent) stated that AHM is their preferred, go‐to resource for Arizona travel information, and nearly three‐quarters (70 percent) reported that it is their Arizona travel guide. Among former subscribers, 28 percent reported that use of AHM as a travel planning guide was the reason they had subscribed to the magazine, offering such comments as, “You're doing a good job. It's a great magazine. Unfortunately, I no longer live in Arizona or visit there enough to use the magazine as a travel guide.” Feedback from focus group participants provided additional insights into how readers use travel information resources, with most describing AHM as the catalyst driving their decision to travel and their starting point for trip planning. AHM was described as “setting the tone” for travel, providing a credible and reliable source for information. Participants noted they often use the magazine to supplement information obtained through destination‐specific resources or websites that contain a 7 wealth of logistical details that they believe are likely not feasible for AHM to include in the magazine (e.g., National Parks website information). Participants’ description of AHM as a travel guide that is somewhat “limited in scope” was not perceived as a drawback or an impediment to readers’ use of the magazine as a travel guide. Theme 3: Subscriber Esteem and Loyalty Subscribers spoke of AHM as Arizona’s definitive magazine. Nearly all AHM subscribers reported that they are devoted fans of the magazine, and that they look forward to receiving their monthly issue (95 and 96 percent, respectively). One individual commented, “My subscription to AHM is now going on continuously since 1948. Keep up the good work.” The vast majority of subscribers (90 percent) agreed that AHM is at the top of their list for “must have” magazine subscriptions. During the focus groups, subscribers spoke of AHM as Arizona’s “definitive magazine,” and more than half the participants in one group noted that it is the only magazine they subscribe to. The following comment from one participant elicited enthusiastic agreement from the rest of the group: “You have to have something that speaks to the rest of the world, for a particular region. If it’s not this magazine, then what is it in Arizona?” AHM is ingrained in the childhood memories of many readers, who recall reading the magazine with their family. Half of all current subscribers (50 percent) reported that AHM is a family tradition shared with children, grandchildren, and other family members. Both current and former subscribers as well as focus group participants referenced memories of time spent enthusiastically reviewing the magazine with family and the lasting impression that AHM had made on them. In addition, more than three‐quarters (78 percent) of subscribers stated that AHM allows them to share the Arizona travel experience with others, and slightly less than three‐quarters (74 percent) stated that giving or receiving a subscription to AHM is a great way to share one’s love for Arizona’s iconic beauty, history, and culture. “My aunt and uncle subscribed to Arizona Highways. As a child I would go to their home, and I would spend hours sitting there, just fascinated with what I saw and what I learned.” Current subscribers (both survey respondents and focus group participants) also expressed interest in seeing AHM take deliberate steps to improve and expand its appeal to the next generation of readers, specifically school‐age children. Subscribers viewed this as an opportunity for AHM to further its mission, engage with a market segment that has considerable influence in family decision‐making 8 matters such as travel, and inspire stewardship. Suggestions included improvements to the AHM website, such as providing more interactive and kid‐friendly content, and AHM publication of a youth magazine (or a special AHM edition published once or twice a year) that could potentially be marketed to schools as well as the general public. Theme 4: Subscriber Engagement and Purchasing Behaviors Current and former subscribers consider themselves satisfied with AHM, and the vast majority of current subscribers plan to renew. Both current and former subscribers reported overall satisfaction with the magazine—86 percent of current subscribers stated that they have had a positive customer experience when purchasing or renewing their subscription and, as noted earlier, 88 percent of former subscribers reported overall satisfaction with AHM. Nearly all current subscribers plan to renew their subscription and believe they are getting their money’s worth in subscribing to AHM (97 and 96 percent, respectively). Subscribers’ engagement with AHM was also evident in their reported use of AHM tools, such as the website and, to a far lesser extent, the Facebook Page and blog.  As noted earlier, more than three‐quarters (78 percent) of current subscriber survey respondents reported using the AHM website. Among former subscribers, 65 percent reported using the site while their subscription was active, and 38 percent after their subscription had expired.  One‐quarter (25 percent) of current subscriber survey respondents reported using the Facebook Page. Among former subscribers, 15 percent reported using the Page while their subscription was active, and 7 percent after their subscription had expired.  Slightly more than one‐tenth (11 percent) of current subscriber survey respondents reported using the AHM blog. Among former subscribers, 15 percent reported using the blog while their subscription was active, and 7 percent after their subscription had expired. When asked about their catalyst for subscribing, current subscribers were nearly evenly divided in reporting that they had initially begun their subscription by responding to an offer or by purchasing one or more issues before deciding to subscribe (36 and 33 percent, respectively). 9 Both current and former subscribers note the gift‐giving appeal of AHM products. Nearly two‐thirds of current subscribers (64 percent) stated that AHM products make great gifts for family, friends, and colleagues, and slightly more than half (52 percent) said they would likely purchase one or more AHM products this year. However, the reported intention of current subscribers to purchase AHM gift subscriptions this year was low, with slightly more than one‐third (34 percent) indicating that they would likely do so. When former subscribers were asked about their purchases of AHM store merchandise, 40 percent reported having made one or more purchases while their subscription was active, and 15 percent after their subscription had expired. Theme 5: Subscriber Reading Behaviors and Preferences Subscribers tend to savor the AHM reading experience. Some subscribers read the magazine in multiple sittings as time permits, while a similar percentage immediately flip through the magazine upon receipt and then put it aside to read at a later time (38 and 37 percent, respectively). The majority (62 percent) reported spending at least one hour reading the magazine, with no difference by age group. Over three‐fourths (77 percent) of survey respondents reported that during the course of a typical month, one to two other people in the household read or looked through their copy of AHM. Photography, scenic drives, and Arizona history are the most popular content areas. The subscriber survey asked respondents to rate their interest in specific topics within a variety of areas, including monthly features, outdoor activities, photography, and travel. The findings are summarized below.  Interest in monthly features was consistent across all demographics, with “Scenic Drive” at the top of the list (85 percent extremely interested), followed by “The Journal” (70 percent), “Hike of the Month” (59 percent), and “Where Is This?” (49 percent). 10  Content preferences for outdoor activities included a predominance of interest in scenic drives (76 percent extremely interested), followed by hiking and backpacking (38 percent), and camping (25 percent).  Photography subjects of primary interest included landscapes (88 percent extremely interested) and wildlife (79 percent).  Interest was similar for travel‐related content regarding restaurants (64 percent extremely interested) and lodging facilities (58 percent).  Interest in AHM content in other subject areas was greatest for Arizona history (78 percent extremely interested), nature (72 percent), and culture (63 percent). Both current and former subscribers suggested adding more content regarding Arizona history and human interest stories that spotlight different areas or regions of the state. Additionally, slightly more than half of all subscribers reported being extremely interested in content related to the environment (54 percent) and science (50 percent). Public interest stories are perceived as aligning with AHM’s mission to raise awareness of issues impacting the state. While 70 percent of survey respondents expressed some interest in public interest stories, 35 percent rated their interest level as “extremely interested” and 35 percent as “interested.” This difference is notable because in all other content areas, the majority of survey respondents reported their interest as “extremely interested.” The topic of public interest stories was extensively explored with focus group participants, nearly all of whom stated the belief that it is very important for AHM to feature public interest stories and that these stories should appear in the magazine as “noteworthy and relevant issues present themselves,” rather than adhering to an arbitrary editorial schedule. These stories were also viewed as important and valuable, providing credible information that presents both sides of an issue and informing and educating readers about the potential impact of the particular environmental, cultural, or societal issue. Subscribers emphasized the need for AHM to present public issue stories in an interesting and thought‐ provoking manner, remain neutral in its position and presentation of the facts, and refrain from political commentary (i.e., not stoke the fires of controversy). Readers were also clear in stating that they expect nothing less from AHM than tastefully written, informative, and educational public interest stories. The following comment from one individual aptly sums up subscriber views on AHM’s role in providing public interest stories: “I think that Arizona Highways, just because of the type of magazine that it is, gives a credible voice and a good forum to be able to address issues like this. I am a lot more likely to take an 11 issue seriously or to look at what they say as opposed to looking at it in Phoenix Magazine or even the newspaper because I can tell . . . that they care about Arizona. They care about having a future place for our children, for our grandchildren. They’re invested.” Subscriber interest in feature stories is piqued by topic and overall visual appeal; length of the story is generally irrelevant. Subscriber preferences regarding the length of feature stories were explored in detail with focus group participants. Their motivation to read a story, regardless of its length, was directly influenced by their interest in the topic and the appeal of the layout—the title, accompanying photography, general content, and overall visual design. For the vast majority, the length of the story is not relevant. When asked about specific topics of interest or the types of stories they would like to see included, focus group participants reiterated comments provided by subscriber and former subscriber survey respondents regarding their interest in more human interest stories that profile the people, places, and backdrops that contribute to Arizona’s diverse history and culture. Most survey respondents and focus group participants were unaware that AHM offers a digital version. Survey respondents expressed differing views of digital subscriptions, but most of their comments expressed interest in a combined print and digital subscription being included in AHM offerings. Focus group participants voiced a distinct preference for print formats, with the majority of subscribers identifying this reading experience as more closely aligned with their needs and preferences. They cited such factors as the:  Tactile sensory enjoyment of flipping through the magazine or marking up the margins with notes  Utility of being able to bring AHM with them when traveling (especially in areas with limited cell phone and Internet signals or service) or to more easily share the magazine with others  Need to disconnect from the technologies that consume their work life or leisure time; these subscribers also strongly expressed the hope that AHM would not change to a totally digital format. 12 Theme 6: Subscriber Suggestions for Improvement Through the use of an open‐ended question—“What can AHM do better?”—current and former subscriber survey respondents were invited to provide suggestions to improve the quality of the magazine, the reader experience, and ways in which AHM could increase subscriptions and renewals. Approximately half (48 percent) of current subscribers stated that AHM should not change anything and that they love the magazine the way it is. Other respondents offered suggestions for improvement in content, marketing, and customer outreach that included the following: Content  Expand photography information to include more technical information, tips and hints, and articles by photographers on photography basics.  Feature more stories related to: (a) Arizona’s history, people, and cultures; human interest stories that provide an in‐depth, personal look at life in Arizona, including Native American culture and history; (b) travel feature stories, including economy travel options, in‐depth information about lodging and restaurants; and (c) local or regional events. It was also suggested that AHM periodically feature humorous articles.  Feature more family and kid‐focused activities to appeal to a broader market; improve the quality of the kid’s section on the website; and create a publication (or special editions) for youth.  Expand information on favorite outdoor activities—hiking, back‐country trips, camping, and biking—and add stories on other activities, such as skiing, boating, off‐roading, and fishing. Marketing  Raise awareness of AHM’s mission and educate the public to eliminate misconceptions about its funding.  Expand marketing efforts to: (a) include digital subscription offers and/or a combined digital/print subscription offer; (b) increase awareness of AHM merchandise; and (c) promote to subscribers and website visitors the offerings of AHM publications, products, and services (e.g., monthly newsletter). Customer Outreach  Address concerns expressed about the: (a) renewal process, such as the need for more reminders prior to termination, offering automatic renewal, and enabling customers to go online and check their subscription status; (b) amount of time between ordering and receipt of product; and (c) subscription rates, such as offering varying price points, renewal rewards, price breaks for longtime subscribers, or “buy two, get one free” promotions for subscription purchases. 13  Engage in timely follow‐up with lost customers, such as sending a survey shortly after a subscriber cancels or lets subscription expire.  Implement offers and benefits that could positively influence customer retention. When former subscribers were asked to identify AHM benefits or offers that would cause them to seriously reconsider subscribing again, the majority (63 percent) identified the ability to purchase or renew their subscription at a discounted rate. This was followed by 15 percent who wanted the ability to purchase a digital subscription to AHM at a discounted rate and 13 percent who wanted to receive subscriber‐only book offers. 14 RECOMMENDATIONS Following extensive analysis of the quantitative and qualitative data obtained in the study, recommendations were developed and presented to the AHM staff to aid planning efforts. These recommendations, which included suggested action steps, were organized into the following key areas of focus:  Meeting expectations: AHM readers’ primary interests  Enhancing content: AHM as the go‐to resource for Arizona travel information  Expanding marketing and promotion efforts  Improving the AHM customer service experience  Staying attuned to reader needs and preferences Top‐Priority Recommendations The AHM staff identified several recommendations as key priorities for implementation; these recommendations are presented below. 1. Continue to foster Arizona tourism by exploring opportunities for AHM to provide supplemental information of high interest to readers, using the AHM website as the primary vehicle for informing the public. This recommendation supports AHM’s marketing goal of ensuring that the AHM website actively supports and facilitates subscriber acquisition and retention efforts—the underpinning of all AHM marketing efforts. From an implementation planning perspective, this recommendation can best be classified as mid‐term to long‐term. Suggested Action Steps  Explore opportunities to fill gaps in the information that can feasibly be included in the magazine with value‐added information and services, such as providing readers website links to destination‐specific resources or providing call‐outs in stories that direct readers to other information sources, including internal AHM resources and external information sources.  Increase the number of feature stories related to travel and include more information regarding: (a) suggested detailed itineraries, (b) must‐see places and things to do, (c) 15 amount of time to allot when visiting various destinations, and (d) historical or background information.  Feature more stories that provide information on economy travel options, such as budget‐ friendly lodging and restaurant suggestions.  Provide more in‐depth information on lodging and restaurants, including maps, accommodations available to visitors, and how and why places were selected for inclusion in the magazine.  Consider outreach to AHM website visitors and subscribers to invite their participation in content development by suggesting itineraries, must‐do places to visit and related activities, etc. 2. Leverage online and social media tools to actively promote AHM products and services; consider bundling offers, such as a combined print/digital subscription. This recommendation supports AHM’s long‐term effort to effectively deploy the use of various media and promotional offers to engage, attract, acquire, and retain subscribers. Suggested Action Steps  Use the social networking sites favored by AHM subscribers to connect with them and reach potential subscribers. These include Facebook, YouTube, LinkedIn, and Pinterest, followed by Google Plus and Instagram.  Use the AHM website and social media to continue promotion of newsstand purchases (e.g., “On newsstands now” banner). Look for opportunities to test and expand newsstand presence in markets most likely to include the age 45–54 reader demographic, because survey findings revealed that nearly half (46 percent) of subscribers ages 45 to 54 purchased single issues prior to subscribing to AHM.  Develop and aggressively market to consumers a dual‐subscription (print and digital) offer, remaining mindful of reader preferences to retain the AHM print format (i.e., readers do not want AHM available in only a digital format).  To correspond with AHM’s 100th birthday celebration, explore opportunities to engage readers in campaigns that inform and educate the public about AHM’s mission and funding—i.e., the pivotal role that subscribers play in ensuring the solvency and longevity of the magazine. 16 3. Develop and implement a research protocol to assess the influence of AHM on state tourism, consumer perceptions of AHM products and services, and/or other related indicators of the effectiveness of AHM in fulfilling its mission and meeting reader expectations. This research‐centered recommendation addresses the fundamental need to regularly assess and evaluate the effectiveness of Arizona Highways magazine in meeting its intended purpose. Suggested Action Steps  Conduct research and assessments on a regular basis to gauge effectiveness, trends in reader interests and attitudes, and shifts in purchasing behaviors (e.g., economic impact study, subscriber and former subscriber perceptions of AHM products, and analysis of subscription and renewal rates).  Periodically conduct online and/or in‐person discussion groups with AHM subscribers and former subscribers.  Invite AHM subscribers and AHM website visitors to join an online consumer panel. Develop a database of the panel members and use it to conduct periodic polls regarding concept or new product testing, public interest issues with potential impact on state tourism, and critical editorial or design topics to inform and aid AHM decision making.  Develop an exit survey and invite subscribers who have not renewed their AHM subscription to complete the survey. Second‐Tier Recommendations To assist in implementation planning, the remaining recommendations are presented in a staging sequence reflective of resource considerations and the amount of time likely needed to achieve full implementation. These recommendations are classified as able to be implemented in either the short, mid, or long term; definitions of those classifications are as follows:  Short‐term – actions that are currently in effect and ongoing or can likely be implemented within the next year with existing AHM resources and staff  Mid‐term – actions that may require additional staffing and financial resources, may involve cooperation and coordination with external partners, and are likely to require one to three years to implement  Long‐term – actions that will require additional staffing, financial resources, and extensive cooperation and coordination with external partners and are likely to require more than three years to implement 17 Short‐Term Implementation 4. Feature more stories about and devote more pages to subscriber favorites, such as: (a) photography; (b) AHM monthly features; and (c) human interest stories. Also continue to fulfill AHM’s mission by featuring public interest stories. Suggested Action Steps  Retain the integrity of the AHM brand and its world‐acclaimed photography by providing AHM readers more photography‐related content such as: (a) technical information, including tips and hints from professionals; (b) articles on the basics, written by photographers; and (c) photography workshops.  Continue to focus on AHM monthly features of greatest interest to subscribers: Scenic Drive, The Journal, Hike of the Month, and Where Is This?  Include more human interest stories that profile the people, places, and backdrops that contribute to Arizona’s diverse history and culture.  Continue to feature public interest stories that are thought‐provoking, informative, educational, and tastefully written. Adhere to reader preferences that AHM remain neutral in its position, present both sides of the issue, and refrain from political commentary. Consider soliciting feedback from AHM readers and AHM website visitors on topics for stories as well as suggestions for additional public interest topics that they would like to see AHM address. 5. Cross‐promote AHM products by capitalizing on the strong affinity that readers have for the AHM brand. Suggested Action Steps  Continue to actively promote the sale of AHM publications and products via other AHM channels, including the website (78 percent of subscribers report having used or visited it), AHM Facebook Page, and the AHM store, and promote monthly newsletter sign‐up.  Provide call‐outs in articles or stories to other AHM publications and products that correlate with the monthly issue theme (e.g., AHM digital publications, travel guides, other products), using a soft‐sell and value‐added approach. 18  Develop subscriber‐only product bundling offers (e.g., pair AHM publications that spotlight regional attractions with state guides for the region, such as pairing Arizona Highways Scenic Drives with Wildlife Guide: 125 of Arizona’s Native Species or Arizona’s Best Recipes).  Expand the use of magazine‐wrapper advertising to introduce subscribers to AHM products.  Develop innovative ways to engage and connect with AHM subscribers through “meet and greet” events or an annual event in which the public can interact directly with the AHM publisher and team (e.g., book signing, special landmark celebration, or product launch events). 6. Improve AHM order and fulfillment processes, invite customer feedback regarding service delivery, reward subscribers for their continued patronage, and identify strategies to reduce churn rates. Suggested Action Steps  Continually work to identify process and procedural improvements to enhance the order entry, fulfillment, and customer service processes that support AHM’s commitment to superior customer service.  Address customer concerns regarding order and fulfillment processing (e.g., renewal via AHM website, delay experienced in receiving subscription).  Promote automatic renewal offers and discounted subscription rate offers to reward continued patronage.  Inform subscribers of self‐service options available to them by providing their email address (e.g., online access to their subscription status).  Invite customers to participate in a brief telephone or online survey at the conclusion of their customer service transaction.  Develop a series of communications to solicit feedback regarding their AHM customer experience from subscribers whose subscriptions have expired or are about to expire. 19 Mid‐Term Implementation 7. Periodically assess user satisfaction with their AHM website experience and address any concerns regarding website content and usage. Suggested Action Steps  Investigate opportunities to enhance the overall AHM customer experience, such as features and functionality of the AHM website that will provide a more intuitive and user‐ friendly experience (e.g., navigation, search capability).  Improve internet search capabilities so AHM website comes to the top of a search results list.  Improve the AHM subscription renewal function.  Conduct brief polls regarding satisfaction with the AHM website and the overall user experience.  Expand opportunities to upsell and cross‐sell AHM products via use of the AHM website. Long‐Term Implementation 8. Promote AHM to the next generation of readers by expanding the use of the website and social media to include more family‐friendly content; explore possibility of developing a special edition or new publication geared toward youth. Suggested Action Steps  Include more magazine, website, and social media content that is specifically geared to the interests of young families and children.  To assess potential interest and identify topics of interest to this audience, conduct a series of polls through the AHM website and AHM Facebook Page or explore opportunities to conduct a research study on strategies for reaching the next generation of AHM readers (e.g., family readership; products geared to young children, tweens and teens, and young adults). 20  Expand the use of AHM social media (e.g., Facebook, Twitter, Tumblr, and Instagram) to engage families and children.  Improve and expand content available on the “For Kids” tab of the AHM website. 9. Explore opportunities to develop and expand content geared toward families and children, including expanded outreach via product promotions.  Consider developing a “For Kids Only” addendum to the magazine that complements content presented on the “For Kids” AHM website tab.  Consider developing stand‐alone (annual) or subscription (semi‐annual, quarterly) AHM publication(s) geared toward different youth age ranges (e.g., children, tweens, teens) and market as an ideal gift for children and grandchildren.  Explore opportunities to get AHM into schools by promoting the magazine to teachers (e.g., providing special online mini‐edition, downloadable teacher lesson plans and classroom activities on AHM website, etc.). This research study has provided information regarding the reading preferences and behaviors of AHM subscribers, as well as insights into the attitudes and opinions held by both current and former subscribers concerning the magazine and the AHM brand. Study findings provide insights into customer engagement, loyalty, and the propensity to purchase—all indicators of the extent to which individuals are likely to remain loyal subscribers to Arizona Highways magazine. 21 22 APPENDIX A SUBSCRIBER SURVEY FINDINGS PRESENTED OCTOBER 16, 2015 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 APPENDIX B SUPPLEMENTAL ANALYSIS OF ARIZONA HIGHWAYS MAGAZINE SUBSCRIBERS PRESENTED OCTOBER 16, 2015 47 48 Promoters, Passives, and Detractors Plan to renew subscription (strongly agree, rating 9‒ 10) Self‐reported‐ subscription source Q2      90% (195) plan to renew their subscription  92% (108) plan to renew their subscription  92% (465) plan to renew their subscription  Nearly evenly split between those who purchased issues before subscribing (40%) and those who responded to a subscription offer (38%). Less than 10% had received an AHM gift subscription. Do not recall: 13%   Nearly 40% reported having responded to a subscription offer and approximately 30% purchased issues before subscribing. Ten percent had received a gift subscription. Do not recall: 25%. Most (58%) tend to either flip/scan for articles of interest (or read 1‐2 articles and then put aside for later reading (44% and 14% respectively). Percent who read in multiple sittings: 36%. Average time spent reading:  Less than 1 hour: 38%  1 hour: 35%  More than 1 hour: 27%  Nearly 40% reported having purchased issues before subscribing and approximately 30% responded to a subscription offer. Fifteen percent had received a gift subscription—highest percentage among respondent groups. Do not recall: 18% Slightly less than half (48%) tend to flip/scan for articles of interest and then put aside for later reading (35% and 13% respectively). Percent who read in multiple sittings: 41%. Average time spent reading:  Less than 1 hour: 43%  1 hour: 36%  More than 1 hour: 22%  Less than half (43%) tend to flip/scan for articles of interest and then put aside for later reading (33% and 10% respectively). Percent who read in multiple sittings: 40%. Average time spent reading:  Less than 1 hour: 38%  1 hour: 32%  More than 1 hour: 30% Monthly features with highest interest ratings consistent across all respondent groups:  Scenic Drive: 9.5  The Journal: 9.0  Hike of the Month: 8.3  Where Is This: 8.0 Less interest: Editor’s Letter (6.0), Contributors Bios (5.9), Letters to the Editor (6.0)  Monthly features with highest interest ratings consistent across all respondent groups:  Scenic Drive: 9.4  The Journal: 9.0  Hike of the Month: 8.0  Where Is This: 8.0 Less interest: Editor’s Letter (6.1), Contributors Bios (6.0), Letters to the Editor (6.4)  Monthly features with highest interest ratings consistent across all respondent groups:  Scenic Drive: 9.3  The Journal: 8.8  Hike of the Month: 8.1  Where Is This: 7.8 Less interest: Editor’s Letter (6.5), Contributors Bios (6.1), Letters to the Editor (6.6)   Interest in AHM Monthly Features Mean rating (10 point scale, 10 is extremely interested). Q6     Received 61+ issues (N = 505) Long‐term Subscriber Promoters: 85% (429) Passives: 11% (58) Detractors: 4% (18) Subscribers receiving 61+ issues represented 78% of AHM Detractors (or 18 of the 23 Detractors). Mean rating, “I would recommend AHM to others”: 9.3   Initial reading habits Q4/Q5 Supplemental Analysis by Number of AHM Issues Received Received 7‐36 issues (N = 275) Received 37‒60 issues (N = 117) Newbie Subscriber Transition/Gotcha Subscriber Promoters: 86% (237)  Promoters: 89% (104) Passives: 13% (35)  Passives: 9% (11) Detractors: 1% (3)  Detractors: 2% (2) Mean rating, “I would recommend AHM to  Mean rating, “I would recommend AHM others”: 9.4 to others”: 9.5  Mean rating is statistically significant; that is, tested for sample size and determined reliable     49  Interest in outdoor activities content Mean rating (10 point scale, 10 is extremely interested). Q7   Interest in photography subject areas Mean rating (10 point scale, 10 is extremely interested). Q8 Interest in travel content Mean rating (10 point scale, 10 is extremely interested). Q9    Interest in other subject areas Mean rating (10 point scale, 10 is extremely interested). Q10  Use of AHM media tools Mean number of days per year (calculation). Q13   Supplemental Analysis by Number of AHM Issues Received Received 7‐36 issues (N = 275) Received 37‒60 issues (N = 117) Newbie Subscriber Transition/Gotcha Subscriber Top 4 content areas of most interest:  Top 4 content areas of most interest:  Scenic Drives: 9.1  Scenic Drives: 9.2  Hiking and Backpacking: 7.2  Hiking and Backpacking: 7.0  Camping: 6.3  Camping: 5.8  Water activities: 5.9  Water activities: 5.7 Of less interest: horseback riding (4.4), road  Of less interest: horseback riding (4.3), cycling, mountain biking (5.0) road cycling, mountain biking (4.7) Summary of means:  Summary of means:  Landscapes: 9.5  Landscapes: 9.6  Wildlife: 9.2  Wildlife: 9.4  Macro: 8.2  Macro: 8.3  People: 7.9  People: 8.2 Summary of means:  Summary of means:  Restaurants: 8.8  Restaurants: 9.0  Lodging: 8.5  Lodging: 8.8 Top 4 subject areas consistent across respondent groups.  History: 9.2  Nature: 9.1  Culture: 8.7  Environment: 8.1 (Science: 8.0) Lower interest subject area (rating 7.4) is public issues.  Use of all AHM media tools is highest among “newbie” subscribers. Use of AHM Facebook Page is consistent across all respondent groups. Mean number of days per year noted below.  AHM FB Page: 12.9  AHM Website: 6.4 Use of Our Blog is less than one percent across all respondent groups; reported use (0.8%)        Top 4 subject areas consistent across respondent groups  History: 9.2  Nature: 9.2  Culture: 8.7  Science: 8.4 (Environment: 8.3) Lower interest subject area (rating 7.4) is public issues.  Use of AHM Facebook Page is consistent across all respondent groups. Mean number of days per year noted below.  AHM FB Page: 8.6  AHM Website: 3.3 Use of Our Blog is less than one percent across respondent groups; reported use (0.7%)  50   Received 61+ issues (N = 505) Long‐term Subscriber Top 4 content areas of most interest:  Scenic Drives: 9.0  Hiking and Backpacking: 6.7  Camping: 5.7  Water activities: 5.3 Of less interest: horseback riding (4.2), road cycling, mountain biking (4.4) Summary of means:  Landscapes: 9.5  Wildlife: 9.2  Macro: 8.1  People: 8.1 Summary of means:  Restaurants: 8.4  Lodging: 8.2 Top 4 subject areas consistent across respondent groups.  History: 9.1  Nature: 9.0  Culture: 8.6  Science: 8.2 (Environment: 8.1) Lower interest subject area (rating 7.4) is public issues. Use of AHM Facebook Page is consistent across all respondent groups. Mean number of days per year noted below.  AHM FB Page: 7.2  AHM Website: 5.5 Use of Our Blog, while quite low is highest among respondents receiving 61+ issues (1%) Agreement: AHM influence on travel Mean rating (10 point scale, 10 is strongly agree with statement). Q14 Agreement: AHM loyalty/affinity Mean rating (10 point scale, 10 is strongly agree with statement). Q15 Agreement: AHM loyalty/affinity Mean rating (10 point scale, 10 is strongly agree with statement). Q16 Agreement: AHM experience, value, promoter score Mean rating (10 point scale, 10 is strongly agree with statement).Q17 Reading/technology use Percentage reporting use. Q23/Q24                       Supplemental Analysis by Number of AHM Issues Received Received 7‐36 issues (N = 275) Received 37‒60 issues (N = 117) Newbie Subscriber Transition/Gotcha Subscriber AHM preferred source for AZ travel  AHM preferred source for AZ travel information: 7.9 information: 8.1 Influenced choice of AZ travel destinations:  Influenced choice of AZ travel 8.5 destinations: 8.6 Motivated day trips: 8.2  Motivated day trips: 8.4 Motivated multi‐day trips/vacation: 8.1  Motivated multi‐day trips/vacation: 8.1 AHM is my travel guide: 7.4  AHM is my travel guide: 7.6 Devoted AHM fan: 9.0  Devoted AHM fan: 9.2 Must have magazine subscription: 8.7  Must have magazine subscription: 8.8 Look forward to receiving monthly issue: 9.2  Look forward to receiving monthly issue: 9.2 Save/collect issues: 8.1  Save/collect issues: 8.5 Allows sharing of AZ travel experience: 8.0  Allows sharing of AZ travel experience: 8.2 AHM is a family tradition: 5.9  AHM is a family tradition: 5.6 Allows sharing/love for Arizona: 7.9  Allows sharing/love for Arizona: 7.9 Products make great gifts: 7.3  Products make great gifts: 7.3 Likely purchase gift subscriptions this year:  Likely purchase gift subscriptions this 5.2 year: 4.5 Likely purchase products this year: 6.6  Likely purchase products this year: 6.6 Positive customer experience: 8.6  Positive customer experience: 8.9 Am getting my money’s worth: 9.2  Am getting my money’s worth: 9.2 Trust the AHM brand‐quality publications:  Trust the AHM brand‐quality 9.1 publications: 9.2 Would recommend AHM to others: 9.4  Would recommend AHM to others: 9.5 Plan to renew AHM subscription: 9.5  Plan to renew AHM subscription: 9.6 Lowest percentage of readers who report  Highest percentage of readers who subscribing to other print or digital report subscribing to other print or digital magazines (69%). magazines (84%) Top 3 technology devices used:  Top 3 technology devices used:  Desk/lap top: 94%  Desk/lap top: 91%  Smartphone: 73%  Smartphone: 71%  Tablet: 52%  Tablet: 61% 51                       Received 61+ issues (N = 505) Long‐term Subscriber AHM preferred source for AZ travel information: 8.1 Influenced choice of AZ travel destinations: 8.6 Motivated day trips: 8.0 Motivated multi‐day trips/vacation: 8.0 AHM is my travel guide: 7.6 Devoted AHM fan: 9.2 Must have magazine subscription: 9.0 Look forward to receiving monthly issue: 9.2 Save/collect issues: 7.9 Allows sharing of AZ travel experience: 8.0 AHM is a family tradition: 6.3 Allows sharing/love for Arizona: 7.7 Products make great gifts: 7.1 Likely purchase gift subscriptions this year: 5.0 Likely purchase products this year: 6.3 Positive customer experience: 8.7 Am getting my money’s worth: 9.2 Trust the AHM brand‐quality publications: 9.1 Would recommend AHM to others: 9.3 Plan to renew AHM subscription: 9.6 Second highest percentage of readers who subscribe to other print or digital magazines (76%) Top 3 technology devices used:  Desk/lap top: 96%  Smartphone: 56%  Cell phone: 46% Supplemental Analysis by Number of AHM Issues Received Key Respondent Demographics by List Source Gender   Male: 53% (145) Female: 47% (130)   Male: 53% (62) Female: 47% (55)    Male: 64% (324) Female: 36% (181) Statistically significant higher percentage of male respondents Mean age Q26/Q27   Youngest respondent groups Mean age: 61.1 years    Oldest respondent group Mean age: 68.0 years Arizona residency Q29 Live in AZ FT/PT ‐ length of time Q30     FT resident: 63% PT: 9% Do not live in AZ: 27% Among respondent groups, highest percentage that have lived in Arizona for less than 10 years (45%); with highest percentage living in state 1‐4 years (29%)  Less than 10 years: 45%  10‐14 years: 9%  More than 15 years: 46% Percent reporting $100K consistent across all respondent groups; among subscribers receiving 7‐36 issues: 24% Overview:  Less than $50,000: 12%  More than $50,000: 58%  Prefer not to respond: 29% Statistically significant difference in age from “newbie” subscribers Mean age: 64.5 years FT resident: 50% PT: 18% Do not live in AZ: 32% Nearly 60% have lived in state 10 or more years, with one‐quarter having lived in the state 10‐14 years. Less than 10 years: 40% 10‐14 years: 15% More than 15 years: 44% Percent reporting $100K consistent across all respondent groups; among subscribers receiving 37‐60 issues: 23% Overview:  Less than $50,000: 8%  More than $50,000: 54%  Prefer not to respond: 38%     FT resident: 47% PT: 12% Do not live in AZ: 41% Highest percentage live in state 10 years or longer (78%)  Less than 10 years: 22%  10‐14 years: 23%  More than 15 years: 55%  Percent reporting $100K consistent across all respondent groups; among subscribers receiving 61+ issues: 25% Overview:  Less than $50,000: 12%  More than $50,000: 54%  Prefer not to respond: 34% Average annual household income Q34             52  APPENDIX C FORMER SUBSCRIBER SURVEY FINDINGS PRESENTED OCTOBER 16, 2015 53 54 55 56 57 58 59 60 61 62 APPENDIX D SUBSCRIBER FOCUS GROUP FINDINGS PRESENTED MAY 27, 2016 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 APPENDIX E. SUPPLEMENTAL ANALYSIS OF AHM PROMOTERS As noted in this report, the Net Promoter Score (NPS) is a scoring system used to define the loyalty of customers by asking about their likelihood of recommending the company, product, or service to others. The analysis of survey responses revealed that AHM received a superior NPS score of 84 from current subscribers. The standard NPS rating scale identifies customers as either: Promoters, loyal enthusiasts who will keep buying and refer others; Passives, satisfied but unenthusiastic customers who are vulnerable to competitive offerings; or Detractors, unhappy customers who can damage the brand and impede growth through negative word of mouth. Among the current subscriber survey respondents, Promoters constituted 86 percent. An extensive analysis of demographics and other characteristics of these AHM Promoters was conducted, and the following summary presents the information learned about AHM promoters. Demographics  The 770 individuals identified as Promoters represent 86% of the subscriber survey respondents.  Slightly more than half (56%) are long‐term subscribers, having received 61+ issues.  Nearly sixty percent (58%) are male.  Their mean age is 65.4.  Generational analysis/representation:   Slightly more than half (55%) are Boomers, with the larger group classified as Older Boomers.  Slightly more than one‐third (36%) are over age 70, considered members of the Silent Generation. Most live in Arizona full‐time, with 49% having lived in the state for 15 years or less and 51% for more than 15 years.  Mean number of years living in Arizona: 14.6  The vast majority are married or living with a partner (78%).  Nearly three‐quarters (74%) have a college degree.  Most are retired and not working (60%); slightly more than one‐third (36%) are employed. 81  Among respondents who opted to provide information regarding their annual household income, a higher percentage of Promoters (13%) than Passives and Detractors reported income of less than $50,000 (8% and 4%, respectively).A significantly lower percentage of Promoters (23%) than Passives (33%) reported income of $100,000 or more; among Detractors, the figure was 39% (low sample size, 9 of 23 Detractors reported income of $100,000+). Subscriptions to Other Magazines  Nearly three‐quarters of Promoters (74%) subscribe to other print or digital magazines. Among Passives, the figure was 80% and among Detractors, the figure was 70%. There were no statistically significant differences in response between Promoters and Passives. Use of Technology  Promoters use technology devices commonly reported by all three groups—desktop or laptop computer, Smartphone, and Tablet.  Desktop or laptop computer: Promoters (95%); Passives (95%), and Detractors (91%)  Smartphones: Promoters (64%); Passives (59%), and Detractors (57%)  Tablet computer: Promoters (48%); Passives (52%), and Detractors (35%)  No statistically significant differences in response between Promoters and Passives Use of Social Networking Sites  A statistically significant greater percentage of Promoters reported use of Facebook than did Passives (56% and 45% respectively). Among Detractors, the figure was 30%.  A statistically significant greater percentage of Promoters reported use of YouTube than did Passives (33% and 22% respectively). Among Detractors, the figure was 17%.  Reported use of LinkedIn was somewhat consistent among groups; 23% of Promoters, 20% of Passives, and 17% of Detractors.  A statistically significant greater percentage of Promoters than Passives reported use of Pinterest (13% and 3% respectively).  Use of Google Plus+ was as follows: Promoters (10%), Passives (5%), and Detractors (9% or 2 of 23). 82 AHM Reading Habits How subscribers first began their subscription to AHM   Promoters reported that they began their subscription to AHM primarily by responding to a subscription offer (36%) or having purchased one or more issues of AHM (newsstand) prior to subscribing (34%). o Among Passives, the figures were 36% (responded to subscription offer) and 26% (purchased one or more issues). o Among Detractors (N=23), the figures were 52% and 13% respectively. While 11% (95) of survey respondents overall reported having initially received an AHM gift subscription, Promoters represented 89% (85) of this group followed by Passives (9% or 9) and Detractors (1% or 1). Number in household who typically read/look through AHM  Approximately 80% of subscribers overall reported that 1‐2 others read/look through AHM; no statistically significant differences by respondent groups were noted. Average time spent reading AHM issue  Promoters appear to savor reading AHM spending 1 or more hours reading the magazine (collective response: 1 hour, 2 hours, 3 or more hours).  A statistically significant greater percentage of Promoters than Passives spend one or more hours reading AHM (64% and 48% respectively). Among Detractors, the figure was 43% (collective response: 1 hour, 2 hours, 3 or more hours). Subscriber Interest in AHM Monthly Features Survey respondents were asked to rate their interest in AHM Monthly Features using a 10‐point scale, where 1 is “not at all interested” and 10 is “extremely interested.” For this particular question, an option was also provided for respondents who felt they were unable to rate their interest level due to lack of familiarity or awareness of a specific feature. Analysis of findings—based on the percentage of subscribers expressing high interest in AHM monthly features and the mean rating attributed to each, 83 reveals that a statistically significant greater percentage of Promoters are “extremely interested” in each of these activities than are Passives (who are interested, but not “extremely interested”). AHM monthly features identified as high‐interest Statistically significant differences between Promoters and Passives: Extremely Interested     Scenic Drive o Of the 759 Promoters who answered this question, 89% rated their interest 9‐10 (extremely interested). Promoters average rating: 9.5 o Of the 102 Passives, 63% rated their interest 9‐10. Average rating: 8.8 o Of the 22 Detractors, 64% rated their interest 9‐10. Average rating: 8.6 The Journal o Of the 763 Promoters who answered this question, 76% rated their interest 9‐10 (extremely interested). Promoters average rating: 9.1. o Of the 104 Passives, 37% rated their interest 9‐10. Average rating: 7.8 o Of the 23 Detractors, 35% rated their interest 9‐10. Average rating: 8.0. Hike of the Month o Of the 758 Promoters who answered this question, 62% rated their interest 9‐10 (extremely interested). Promoters average rating: 8.4. o Of the 102 Passives, 37% rated their interest 9‐10. Average rating: 7.3 o Of the 22 Detractors, 32% rated their interest 9‐10. Average rating: 6.7 Where Is This? o Of the 759 Promoters who answered this question, 54% rated their interest 9‐10 (extremely interested). Promoters average rating: 8.1. o Of the 103 Passives, 20% rated their interest 9‐10. Average rating: 6.6 o Of the 23 Detractors, 30% rated their interest 9‐10. Average rating: 6.9 84 AHM monthly features identified as somewhat less interesting Statistically significant differences between Promoters and Passives: Extremely Interested    Editor’s Letter o Of the 760 Promoters who answered this question, 27% rated their interest 9‐10 (extremely interested). Promoters average rating: 6.6. o Of the 103 Passives, 5% rated their interest 9‐10. Average rating: 4.8 o Of the 22 Detractors, 4% rated their interest 9‐10. Average rating: 4.1 Letters to the Editor o Of the 765 Promoters who answered this question, 28% rated their interest 9‐10 (extremely interested). Promoters average rating: 6.6. o Of the 103 Passives, 4% rated their interest 9‐10. Average rating: 5.2 o Of the 23 Detractors, 0%. Average rating: 4.7 Contributors—brief bios o Of the 764 Promoters who answered this question, 21% rated their interest 9‐10 (extremely interested). Promoters average rating: 6.3. o Of the 103 Passives, 2% rated their interest 9‐10. Average rating: 4.6 o Of the 22 Detractors, 0% rated their interest 9‐10. Average rating: 4.2 Subscriber interest in AHM Outdoor Activities Content Analysis of findings, based on the percentage of subscribers from each respondent group expressing high interest in AHM outdoor activities and the mean rating attributed to each, reveals that a statistically significant greater percentage of Promoters (N=770) are “extremely interested” in each of these activities than are Passives (N=104) who are interested, but not “extremely interested” in each content area. Detractors (N=23) sample was too small for statistical significance testing. AHM outdoor activities content identified by respondents overall as high‐interest Statistically significant differences between Promoters and Passives: Extremely Interested  Scenic Drives 85   o 80% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 9.2. o 48% of Passives and 57% of Detractors rated their interest 9‐10. o Passives average rating: 8.2; Detractors: 8.2 Hiking and Backpacking o 40% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 7.1. o 26% of Passives and 26% of Detractors rated their interest 9‐10. o Passives average rating: 6.2; Detractors: 5.3 Camping o 27% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 6.0. o 11% of Passives and 9% of Detractors rated their interest 9‐10 o Passives average rating: 5.1; Detractors: 4.3 AHM outdoor activities content identified by respondents overall as somewhat less interesting Statistically significant differences between Promoters and Passives: Extremely Interested   Water Activities o 18% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 5.8. o 4% of Passives and 0% of Detractors rated their interest 9‐10 o Passives average rating: 4.3; Detractors: 3.1 Road Cycling and Mountain Biking o 14% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 4.8. o 9% of Passives and 0% of Detractors rated their interest 9‐10 o Passives average rating: 3.8; Detractors: 2.4 86  Horseback Riding o 11% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 4.4. o 2% of Passives and 9% of Detractors rated their interest 9‐10 o Passives average rating: 3.4; Detractors: 3.5 Subscriber interest in Photography Subject Areas Statistically significant differences between Promoters and Passives: Extremely Interested    Landscapes o 92% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 9.6. o 69% of Passives and 57% of Detractors rated their interest 9‐10 o Passives average rating: 8.8; Detractors: 8.7 Wildlife o 84% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 9.3. o 51% of Passives and 52% of Detractors rated their interest 9‐10 o Passives average rating: 8.3; Detractors: 8.5 Macro o 59% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 8.4. o 27% of Passives and 26% of Detractors rated their interest 9‐10 o Passives average rating: 7.1; Detractors: 6.8 87  People o 56% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 8.3. o 19% of Passives and 48% of Detractors rated their interest 9‐10 o Passives average rating: 6.6; Detractors: 7.5 Subscriber interest in Travel Content Statistically significant differences between Promoters and Passives: Extremely Interested   Restaurants o 68% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 8.8. o 40% of Passives and 43% of Detractors rated their interest 9‐10 o Passives average rating: 7.8; Detractors: 7.3 Lodging o 61% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 8.5. o 35% of Passives and 39% of Detractors rated their interest 9‐10 o Passives average rating: 7.4; Detractors: 7.0 Subscriber interest in Other Subject Areas Statistically significant differences between Promoters and Passives: Extremely Interested  History o 83% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 9.3. o 42% of Passives and 52% of Detractors rated their interest 9‐10 o Passives average rating: 8.0; Detractors: 8.5 88    Nature o 78% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 9.2. o 34% of Passives and 39% of Detractors rated their interest 9‐10 o Passives average rating: 7.9; Detractors: 8.0 Culture o 68% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 8.8. o 28% of Passives and 43% of Detractors rated their interest 9‐10 o Passives average rating: 7.3; Detractors: 8.0 Science o 54% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 8.3 o 32% of Passives and 22% of Detractors rated their interest 9‐10 o Passives average rating: 7.4; Detractors: 7.2 Other subject areas identified by respondents overall as somewhat less interesting  Public Issues o 38% of Promoters rated their interest 9‐10 (extremely interested). Promoters average rating: 7.5. o 13% of Passives and 30% of Detractors rated their interest 9‐10 o Passives average rating: 6.3; Detractors: 7.0 Use of AHM Website, Facebook Page, and Blog  Overall, frequent use of AHM media tools was low: a) 82% of all subscribers reported that they visited or used the AHM website less often than once a month; b) 90% reported that they visited or used the AHM Facebook Page less often than once a month; and c) 96% reported that they visited or used the AHM Blog less often than once a month. 89  While no major differences in use were noted, a significantly greater percentage of Promoters (19%) than Passives reported using the AHM website once a month or more (19% and 11%, respectively). Among Detractors, the figure was 9%. Agreement Statements: Influence of AHM on Travel Statistically significant differences in response between Promoters and Passives: Strongly Agree To a far greater extent than Passives or Detractors, Promoters view AHM as having influenced their travel plans and behaviors. When rating their agreement with a series of statements designed to provide insight into the influence of AHM on travel plans and/or decision making, a statistically significant greater percentage of Promoters (N=770) “strongly agreed” than did Passives (N=104). Response data for Detractors (N=23) is also presented.     AHM is my preferred source for Arizona travel information. o 54% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 8.3. o 11% of Passives and 13% of Detractors rated their interest 9‐10 o Passives average rating: 6.5; Detractors: 5.8 AHM has influenced my choice of travel destinations in Arizona. o 67% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 8.8. o 26% of Passives and 17% of Detractors rated their interest 9‐10 o Passives average rating: 7.4; Detractors: 6.6 AHM has motivated me to take day trips to Arizona travel destinations. o 62% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 8.4. o 22% of Passives and 9% of Detractors rated their interest 9‐10 o Passives average rating: 7.0; Detractors: 5.7 AHM has motivated me to take multi‐day trips to Arizona travel destinations or to vacation in Arizona. o 60% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 8.3. 90  o 16% of Passives and 13% of Detractors rated their interest 9‐10 o Passives average rating: 6.7; Detractors: 6.1 AHM is my Arizona travel guide. o 46% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 7.8. o 3% of Passives and 18% of Detractors rated their interest 9‐10 o Passives average rating: 5.7; Detractors: 5.3 Agreement Statements: AHM Loyalty/Affinity Statistically significant differences in response between Promoters and Passives: Strongly Agree To a far greater extent than Passives or Detractors, Promoters consider themselves to be devoted AHM fans, having a high regard for the AHM brand and an emotional connection to the magazine (e.g., fond memories and associations). When rating their agreement with a series of statements designed to provide insight into brand loyalty and affinity, a statistically significant greater percentage of Promoters (N=770) “strongly agreed” than did Passives (N=104). Response data for Detractors (N=23) is also presented.    I am a devoted fan of Arizona Highways magazine. o 85% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 9.4. o 28% of Passives and 22% of Detractors rated their interest 9‐10 o Passives average rating: 7.7; Detractors: 6.8 AHM is at the top of my list for “must have” magazine subscriptions. o 79% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 9.2. o 16% of Passives and 13% of Detractors rated their interest 9‐10 o Passives average rating: 7.0; Detractors: 6.0 I look forward to receiving my monthly issue of AHM. o 86% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 9.5. 91   o 28% of Passives and 26% of Detractors rated their interest 9‐10 o Passives average rating: 7.8; Detractors: 7.2 I save and/or collect issues of AHM. o 67% of Promoters rated their agreement 9‐10 (strongly agree Promoters average rating: 8.3. o 35% of Passives and 22% of Detractors rated their interest 9‐10 o Passives average rating: 6.6; Detractors: 5.6 AHM allows me to share the Arizona travel experience with others. o 62% of Promoters rated their agreement 9‐10 (strongly agree). The mean rating for Promoters overall was 8.3. o 17% of Passives and 4% of Detractors rated their interest 9‐10 o Passives average rating: 6.3; Detractors: 4.7 Agreement Statements: AHM Subscriber Engagement and Purchasing Behaviors Statistically significant differences in response between Promoters and Passives: Strongly Agree To a far greater extent than Passives or Detractors, Promoters are engaged with AHM. Areas where agreement with AHM value statements is not quite as strong as one might expect include likelihood of purchasing AHM products and subscriber plans to purchase one or more AHM gift subscriptions during the year. When rating their agreement with a series of statements designed to provide insight into engagement and planned purchases, a statistically significant greater percentage of Promoters (N=770) “strongly agreed” than did Passives (N=104). Response data for Detractors (N=23) is also presented.  AHM is a family tradition shared with children, grandchildren, and/or other family members. o 32% of Promoters ted their agreement 9‐10 (strongly agree). Promoters average rating: 6.4. o 2% of Passives and 4% of Detractors rated their interest 9‐10 o Passives average rating: 4.2; Detractors: 3.6 92     Giving or receiving a subscription to AHM is a great way to share one’s love for Arizona’s iconic beauty, history, and culture. o 56% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 8.2. o 10% of Passives and 4% of Detractors rated their interest 9‐10 o Passives average rating: 5.8; Detractors: 4.5 AHM products make great gifts for family, friends, and colleagues. o 40% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 7.5. o 7% of Passives and 9% of Detractors rated their interest 9‐10 o Passives average rating: 5.4; Detractors: 4.1 I will likely purchase one or more AHM gift subscriptions this year. o 24% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 5.2. o 7% of Passives and 0% of Detractors rated their interest 9‐10 o Passives average rating: 3.8; Detractors: 1.8 I will likely purchase one or more AHM products this year. o 36% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 6.7. o 9% of Passives and 13% of Detractors rated their interest 9‐10 o Passives average rating: 5.1; Detractors: 3.7 Agreement Statements: AHM Subscriber Experience, Perceived Value of Subscription, Likelihood to Recommend AHM, Renewal Statistically significant differences in response between Promoters and Passives: Strongly Agree To a far greater extent than Passives or Detractors, Promoters are passionate about AHM, have a high level of trust in the brand, and believe that subscribing to AHM is money well spent. When rating their agreement with a series of statements about their AHM customer experience and their likelihood to 93 recommend AHM to others, a statistically significant greater percentage of Promoters (N=770) “strongly agreed” than did Passives (N=104). Response data for Detractors (N=23) is also presented.     I have had a positive customer experience when purchasing or renewing my subscription to AHM. o 78% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 9.0. o 6% of Passives and 22% of Detractors rated their interest 9‐10 o Passives average rating: 6.8; Detractors: 5.9 I feel as though I am getting my money’s worth by subscribing to AHM. o 90% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 9.5. o 12% of Passives and 22% of Detractors rated their interest 9‐10 o Passives average rating: 7.5; Detractors: 6.0 The AHM brand is a brand that I trust, whether subscribing to the magazine or purchasing an AHM Guidebook, I know that I can count on the AHM name for a quality publication. o 89% of Promoters rated their agreement 9‐10 (strongly agree) Promoters average rating: 9.5. o 4% of Passives and 18% of Detractors rated their interest 9‐10 o Passives average rating: 7.3; Detractors: 5.9 I would recommend AHM to others. This question was used to identify Promoters, Passives, and Detractors and to support analysis by respondent groups. o Promoters—defined as respondents who “strongly agree” (rating of 9‐10)—numbered 770 and represented 86% of respondents. Mean rating: 9.7. o Passives—defined as respondents “Agree” (rating of 7‐8)—numbered 104 and represented 11% of respondents. Mean rating: 7.7 o Detractors—defined as respondents who are either neutral or disagree (rating of 1‐6)— numbered 23 and represented 2% of respondents. Mean rating: 4.7. 94  I plan to renew my subscription to AHM. o 98% of Promoters rated their agreement 9‐10 (strongly agree). Promoters average rating: 9.8. o 57% of Passives and 43% of Detractors rated their interest 9‐10 o Passives average rating: 8.5; Detractors: 7.3 Focus Group Participation Survey respondents were asked, “Would you be interested in participating in an upcoming in‐person group discussion about Arizona Highways magazine? The discussion will be conducted in August and will give participants the opportunity to provide additional feedback and suggestions regarding their AHM reader experience. If you qualify and participate, you will receive a $75 honorarium (check) as a thank‐ you. Would you like to receive information about participating in this discussion group?”  27% (206) of Promoters expressed interest  10% (10) of Passives expressed interest  13% (3) of Detractors expressed interest 95