As the European category leader - Readly has adopted an ambitious strategy to reach profitability.
We are making progress in the transition to becoming a profitable company. At the end of the 2022, Readly's strategic agenda was updated with three revised focus areas.These efforts are expected to accelerate our path to profitability in 2023.
- Content relevance
- Technological development and innovation
- Sustainable growth
Readly's user experience is about serving the right content, in the right format, at the right time. In this way, Readly can maximise how often and for how long the service is used and therefore the value of being a subscriber. A strong habit of engaging with the content on the platform will in turn have a positive impact on the rate of conversion from trial to full-paying customers and the retention of existing users. We are continuing to add quality journalism from popular publishers. With our leading range of thousands of national and international magazines and newspapers, the strategy is focused, for example, on developing personalised and curated reading recommendations in the apps and newsletters. More frequent, more relevant communication with users will have a direct effect on behaviour and engagement, creating better opportunities to discover relevant titles and podcasts.
A person’s individual experience of using Readly also depends on how actual browsing in the apps will be changed based on users' respective preferences. Furthermore, providing the right format is largely about offering articles in HTML rather than as PDFs, as this also allows the inclusion of embedded videos and better adaptation for mobile use, for example. Finally, we are continuing to invest in audio so that Readly can be used for more than just reading. Our range of podcasts is growing, and we are also looking at how we can work with text-to-speech and read-aloud articles, for instance.
Technological development and innovation
Our work on technology is aimed at enabling more efficient product development and creating technological solutions for new content formats. This includes increasing the use of customer data and insights to provide real-time recommendations across all customer touchpoints with Readly. This is an important basis for the development of personalised content, recommendations and the search function in our service. We will also provide additional data for internal knowledge development, for example through analyses and data reports, which can be used to help make product development decisions. The methods we use to process different types of content, such as complete issues, articles and podcasts, will improve, to speed up the publication of new issues and podcast episodes. At the same time, we will optimise internal processes and free up capacity by using SaaS and automated operations. This covers every aspect of our goal of accelerating the development of our products and services.
Readly is concentrating on increasing growth in its four core markets of Germany, the UK, Sweden and France, and scaling up in the other markets that are reporting the highest rates of return.
We are continuing to work with a lower marketing budget and are focusing on improved unit economics, i.e. the most attractive development of lifetime value relative to the acquisition cost per subscriber. We are now more efficient when it comes to channel selection and the markets to be prioritised to get better returns on investment.
Partnerships are continuing to serve as strong sources of new subscribers while offering low acquisition costs. Our offer is promoted through brand-building partnerships in joint marketing campaigns or via resellers.
Another aspect of sustainable growth concerns product development throughout the customer journey, to promote increased awareness and reduce customer churn. We want to address this by making it easier to try out Readly through the further development of Readly Guest, a concept that allows customers visiting cafés, hairdressers or hotels to access Readly for free for 24 hours.