5 Key Insights Publishers Can Learn From McDonald’s: A Lesson In Customer Service Innovation
by John Byrne, co-founder and CEO at Writers’ Bloc.
TL;DR: Drawing inspiration from McDonald’s, publishers can revolutionise reader engagement by diversifying access points, balancing innovation with tradition, and harnessing the power of data-driven decision-making.
In an era of digital disruption, the publishing industry faces unprecedented challenges.
With rapidly diminishing resources, mercurial audience demands, and a proliferation of compelling alternatives, independent publishers find themselves at a critical juncture.
We’ve heard this before, but what to do?
Surprisingly, the path forward might be illuminated by an unlikely source: McDonald’s.
Yes, McDonald’s; the fast-food restaurant chain.
They have delivered an exemplary case study with their innovative approach to customer service and accessibility. Let me explain.
The McDonald’s Model: Make It Easy For The Customer
McDonald’s has set a new standard in customer-centric innovation by integrating touch-screen kiosks, developing a robust mobile app, and forming strategic food-delivery partnerships.
Adding to the existing in-store options of a human cashier, drive-thru, and curb-side pick-up, customers can order food by any means they prefer; some are more digitally-enabled, others prefer talking to a cashier.
This approach offers invaluable lessons for publishers seeking to enhance reader engagement and streamline operations.
By expanding the number of channels customers can place an order, while maintaining traditional options, McDonald’s has successfully:
1. Increased customer touch-points
2. Streamlined operations
3. Gathered granular data on customer preferences
4. Improved order accuracy
5. Boosted average order value
According to a 2015 Harvard Business Review article, McDonald’s saw a 30% increase in average order size as a result of its digital kiosks. This success stems from a strategy that embraces innovation without alienating its traditional customer base.
In fact, McDonald’s reported that the average check size for kiosk orders was 12-15% higher than orders placed at the counter, according to a 2021 article in QSR Magazine.
The Publishing Parallel: Reimagining Reader Engagement
How can publishers apply these lessons? Let’s delve into actionable strategies and potential pitfalls that can transform your publishing model.
1. Diversify Access Points
Strategy: Just as McDonald’s offers multiple ways to order, publishers need to provide various entry points for content consumption.
Implementation:
– Develop a user-friendly mobile app for on-the-go reading
– Implement voice-activated content delivery for smart speakers
– Offer newsletter digests for time-strapped executives
– Create podcast versions of popular articles
Case Study: The New York Times has successfully implemented a multi-channel strategy. Their content is available via website, mobile app, email newsletters, and even on platforms like Snapchat. This approach contributed to their digital subscription growth, reaching 7.6 million digital paid subscribers in 2021, a 25% year-over-year increase.
[Source: New York Times Company 2021 Annual Report].
The Times’ strategy goes beyond mere presence on multiple platforms. They’ve tailored their content for each medium:
Convenience: Their mobile app features an “At a Glance” section for quick news consumption
Variety: Their newsletter portfolio includes 71 different options, catering to various interests
Interactive: They’ve developed interactive features like their COVID-19 tracker, which became a go-to resource during the pandemic
This diversification has not only increased subscriber numbers but also improved engagement. The average Times subscriber now engages with the content 3-4 times a day across various platforms.
[Source: Nieman Lab].
Potential Challenges: Maintaining consistency across platforms and managing increased operational complexity.
2. Embrace Technology, But Maintain Traditions
Strategy: McDonald’s kept its cashiers while adding kiosks. Similarly, publishers should balance innovation with tradition.
Implementation:
– Maintain print editions for traditionalists
– Develop interactive digital experiences for tech-savvy readers
– Offer audio versions of articles for commuters
– Create AR/VR experiences for immersive storytelling
Case Study: The Economist has successfully balanced tradition and innovation. They maintain a high-quality print edition while offering a robust digital presence, including an audio edition of the full weekly magazine. This variety has helped them maintain a stable circulation of around 1 million, with 70% of those being digital subscribers in 2021.
The Economist’s approach includes:
Audio: A “read-to-me” feature in their app, allowing subscribers to listen to articles.
Visual: Interactive data visualisations that complement written articles.
Physical: A print edition that remains popular, with subscribers often viewing it as a “weekend treat”
The Economist maintain a loyal subscriber base while attracting younger readers by taking this multi-format, multi-modal approach. Their digital-only subscriptions grew by 27% in 2020.
In 2024, digital subscriptions increased 13% YoY, accounting for 86% of new starts for the year and a 12% jump in operating profit.
[Source: The Economist Group Annual Report 2020, The Economist Group Annual Report 2021, and Group Annual Report 2024].
Potential Challenges: Balancing resource allocation between traditional and innovative formats.
3. Personalisation Is Key
Strategy: McDonald’s kiosks remember previous orders, and collate huge amounts of customer and order data. Publishers can leverage similar personalisation techniques for their readers.
Implementation:
– Recommend articles based on reading history; keep it fresh by using the 90/10 rule, where 10% of the recommendations are totally different to the core topics/subjects.
– Offer customisable homepages
– Provide personalised newsletter options
– Implement dynamic paywalls based on user behaviour
Case Study: Netflix’s recommendation system, which drives 80% of viewer activity, offers a model for content personalisation. A similar approach in publishing could significantly boost engagement.
[Source: Netflix Tech Blog article, 2012].
Interestingly, Amazon has removed the “editorial recommendations” from its search results. Amazon, for a long time, had a program called Onsite Associates – known internally as OSP – that allowed publishers to match top-rated products with editorialised blurbs. Critics paralleled it to payola, calling it a ‘pay for play’ tactic.
Amazon have since discontinued this practice, replacing it with more ads.
[Source: Digiday, 2023]
Potential Challenges: Balancing personalisation with privacy concerns and avoiding “filter bubbles.”
4. Data-Driven Decision Making
Strategy: McDonald’s uses kiosk and app data to optimise menus and operations. Publishers should adopt a similar data-centric approach.
Implementation:
– Analyse reading patterns to inform content strategy
– Use A/B testing for headlines and layouts
– Track engagement metrics to refine distribution strategies
– Implement predictive analytics for content performance
Case Study: The Financial Times uses a metric called “Quality Reads” to measure how many subscribers read 50% or more of an article. This data informs their editorial strategy and has contributed to their digital success, with digital subscriptions growing 11% year-on-year in 2019 for 10 years running.
They went from 100K subscribers to 1 million in that period, and today digital subscribers account for three quarters of its circulation.
[Source: FT Strategies, and Digiday Article, 2023].
Potential Challenges: Ensuring data accuracy and interpreting complex analytics correctly.
5. Streamline Operations Without Sacrificing Quality
Strategy: Just as McDonald’s kiosks improve order accuracy, publishers can use technology to enhance efficiency and quality.
Implementation:
– Implement AI-assisted editing tools
– Use project management software to streamline workflows
– Automate routine tasks like social media posting
– Leverage blockchain for content rights management
Case Study: Associated Press uses AI to generate certain types of reports, for example, financial annual reports, freeing up journalists for more complex stories. This automation has increased their output of earnings reports by tenfold while reducing errors.
[Source: AP Insights: Artificial Intelligence].
Potential Challenges: Maintaining the human touch in storytelling and avoiding over-reliance on automation.
The Contrarian View: Potential Risks and Drawbacks
While these strategies offer significant potential, it’s crucial to consider potential drawbacks:
1. Over-digitisation: Rapid digital transformation might alienate traditional readers who value the tactile experience of print media.
2. Data Privacy Concerns: Increased data collection and personalisation could raise privacy issues, potentially damaging reader trust.
3. Content Commoditisation: In the rush to produce more content across various platforms, there’s a risk of sacrificing depth and quality for quantity.
4. Technology Dependency: Over-reliance on technology could leave publishers vulnerable to technical failures or cyber attacks.
5. Loss of Editorial Voice: Excessive personalisation might lead to a fragmented readership and a dilution of the publication’s unique editorial perspective.
Forward-thinking Publishers Will Flourish In The Future
The publishing industry stands at a pivotal crossroads. By judiciously applying lessons from McDonald’s customer-centric approach, independent publishers can not only survive but thrive in the digital age.
The key lies in strategically diversifying access points, balancing innovation with tradition, personalising experiences, making data-driven decisions, and streamlining operations—all while maintaining the core values of quality journalism and storytelling.
As you implement these strategies, it’s crucial to:
1. Measure: Continuously gather and analyse reader feedback
2. Modify: Iterate and refine your approach
3. Be Consistent: Stay true to your publication’s unique voice and values
4. Stay Agile: Be prepared to pivot quickly in response to industry changes
Remember, the goal isn’t simply to adapt—it’s to excel and lead the charge in redefining the future of publishing. Lead by example; your audience will respond.
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