In a crowded communication environment, media have to prove their effectiveness and accountability in reaching their goals. Although marketing analytics are more important than ever in modern marketing programs, hardly any research is available on the effectiveness of customer magazines. This research focuses on answering the question: “Are customer magazines accountable in reaching their goals?” Previous research on the effectiveness of relationship magazines has been commissioned in the UK by the Association of Publishing Agencies (APA) and Royal Mail, in cooperation with Millward Brown. The research shows that readers have a sophisticated understanding of the role of customer magazines; they welcome them, spend time reading them, have a more positive view of the company image and are more inclined to continue using the company than non-readers. In order to find out whether the results of the APA study can be extended to the Dutch market, and verify the likelihood that the customer magazine is accountable for the differences between readers and nonreaders, we started our own research, consisting of nine magazines from three different sectors. Our findings confirm the effectiveness of customer magazines as a medium for building and retaining loyalty. Based on our results the customer magazine has definitely moved away from the public relations exercise towards the strategic communication device. Customer magazines have an effective role to play as part of the marketing mix. A role that is even more effective, if the intermediate function of a customer magazine is taken into account. Customer magazines are the ideal means to mention a company’s website, to refer to exhibits, stimulate (web)store visits, link to the company’s catalogue, and explore market research. Customer magazines, therefore, should be integrated into the mainstream marketing (communication) strategies.

1. CUSTOMER MAGAZINES: AN EFFECTIVE WEAPON IN THE DIRECT MARKETING ARMORY*
Jos M.C. Schijns, Open University of the Netherlands, Heerlen, the Netherlands
ABSTRACT
In a crowded communication environment, media have to prove their effectiveness and accountability in
reaching their goals. Although marketing analytics are more important than ever in modern marketing
programs, hardly any research is available on the effectiveness of customer magazines. This research
focuses on answering the question: “Are customer magazines accountable in reaching their goals?”
Previous research on the effectiveness of relationship magazines has been commissioned in the UK by
the Association of Publishing Agencies (APA) and Royal Mail, in cooperation with Millward Brown. The
research shows that readers have a sophisticated understanding of the role of customer magazines; they
welcome them, spend time reading them, have a more positive view of the company image and are more
inclined to continue using the company than non-readers.
In order to find out whether the results of the APA study can be extended to the Dutch market, and verify
the likelihood that the customer magazine is accountable for the differences between readers and non-
readers, we started our own research, consisting of nine magazines from three different sectors.
Our findings confirm the effectiveness of customer magazines as a medium for building and retaining
loyalty. Based on our results the customer magazine has definitely moved away from the public relations
exercise towards the strategic communication device. Customer magazines have an effective role to play
as part of the marketing mix. A role that is even more effective, if the intermediate function of a customer
magazine is taken into account. Customer magazines are the ideal means to mention a company’s
website, to refer to exhibits, stimulate (web)store visits, link to the company’s catalogue, and explore
market research. Customer magazines, therefore, should be integrated into the mainstream marketing
(communication) strategies.
Keywords: Custom(er) Magazine, Customer Loyalty
1. INTRODUCTION
The market for customer media, including customer magazines, is growing fast. In the UK the revenue
generated by customer publishing agencies (excluding other industry costs, such as production and
distribution costs) was worth £352 million in 2005. That’s a 2.2% increase compared to 2004. And this
value will significantly increase over the next five years to £541 million by 2011, according to Mintel
(2006). That’s an increase of some 54%, or 34% when the effects of inflation are taken into account.
The market for customer media is the fastest growing market, after the internet, according to the Custom
Publishing Council of the DMA (US). Some reasons for this amazing growth can be pointed out.
As a result of technological innovation and cutting edge printing technology, it becomes more efficient and
effective to produce customer magazines, even in multiple versions addressed at different, small
customer segments (versionalisation). The personalized magazine has become an affordable means
within a companies direct marketing communication strategy. When marketingbudgets become smaller
and competition gets tough, customer magazines become an increasingly important component of the
marketing mix.
Also, traditional means of communicating with customers seem less effective, giving new opportunities for
media like customer magazines (Bronner, 2004). Hundreds of companies, across all industry sectors, are
discovering that a customer magazine can encourage customer loyalty, provide information to existing
customers, generate new business, promote brand awareness and boost sales to existing customers
(APA).
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2. In addition, customer magazines offer companies increased control over the content of the message and
the channel(s) the message is distributed through, e.g. print and/or digital. That is, companies are more
able to direct their message at the decision makers in their target markets and build a positive image.
However, the more crowded the communication environment, the more media have to prove their
effectiveness and accountability in reaching their goals. Although marketing analytics are more important
than ever in modern marketing programs, there is hardly any research available on the effectiveness of
customer magazines. So, the question to be answered is: Are customer magazines accountable in
reaching their goals?
2. LITERATURE REVIEW
Customer magazines are broadly defined by Mintel (2006) as “any regularly published title that is
produced by a publishing agency on behalf of a third party and that is offered to customers, employees or
members.”
Successful customer magazines work to specific objectives. Some of the most cited marketing- and
communication goals of customer magazines are:
1. Building stronger relationships with their target markets, inside and outside the company.
2. Establishing a desired brand image or positioning.
3. Promoting brand awareness.
4. Providing information to their target market(s), e.g. about (new) products and services and/or their
usage.
5. Changing behaviour. Using, for example, coupons, special offers, invitations, recepies, readers
act or respond after reading the latest issue.
Almost all sectors are utilising customer magazines as a marketing tool, including b2b, b2c, profit and
non-profit organisations. Retailing, automotive and financial services are the most popular types of
customer publishing. Other important sectors include charities, leisure/sport and utilities and public sector.
Former research on effectiveness of relationship magazines has been commissioned by the Association
of Publishing Agencies (APA) and Royal Mail, in cooperation with Millward Brown. They examined the
attitudes of consumers and business readers towards customer magazines, readership patterns, whether
or not they are persuasive and the effect they have on company image. The study also compares the
attitudes of people who don't read customer magazines. Their results suggest that customer magazines:
Are twice as popular as all other forms of direct marketing, e.g. direct mail
Are the most cost effective medium for relationship building
Improve brand image by 9%
Increase brand loyalty by 32%
Increase share of wallet by 8%
Provoke response – 44% of readers were found to interact with a brand as a direct result of
reading a customer magazine
Engage readers for an average of 25 minutes – a time period other media can only dream of.
That’s the same as 50 30-second TV slots or 187.5 poster views
(Sources: DMA; APA; Billetts Media Auditing; the Branded Content Marketing Association)
The research shows that readers have a sophisticated understanding of the role of customer magazines;
they welcome them, spend time reading them, have a more positive view of the company image and are
more inclined to continue using the company than non-readers. The research confirms the media power
of the customer magazine. It shows companies with customer magazines enjoy more profitable
conversations with their customers.
More initiatives for research have been taken. In the Netherlands, for example, SMIN has started a case-
by-case study in order to be able to benchmark customer magazines. Sanoma, a publishing agency, has
introduced its own measurement instrument, the DCMM (Dutch Customer Magazine Monitor). Results,
however, have not been available (yet).
In order to find out whether the results of the APA study can be extended to the Dutch market, and to
verify the likeliness that it is the customer magazine that is accountable for the differences between
JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 8, Number 3, 2008 71

3. readers and non-readers, we started our own research containing nine magazines from three different
sectors.
3. PROPOSITIONS AND CONCEPTUAL FRAMEWORK
Since we are aiming at generalization of earlier research results, mainly from the UK, to the Dutch market,
our hypotheses are formulated in accordance to these existing research results, including:
Hypothesis 1: Readers of customer magazines are more committed than non-readers.
Hypothesis 2: Readers of customer magazines have a more positive view of the company image than
non-readers.
Hypothesis 3: Readers interact with a brand as a direct result of reading a customer magazine.
Hypothesis 4: The customer magazine is a significant driver for customer relationship commitment.
Figure 1 shows our model of customer loyalty management (CLM-model). RQ, relationship quality, is a
two-dimensional construct (containing satisfaction and trust) that has a direct and an indirect effect
(through RC, relationship commitment) on the willingness to continu the relationship and on the
willingness to recommend the company. RQ and RC are necessary elements for strong relationships
between the company and its customers. In strong relationships, it’s more likely that customers
recommend the company and continue the relationship. The customer magazine is added to this basic
model of customer loyalty in order to test whether the customer magazine generates a commitment (i.e.
attitudinal loyalty) effect (Mag_RC).
Potential
selection-effect
Continue
+
+
+
RQ RC
+
+
+ Mag_RC
Magazine Recommend
Commitment
-effect
RQ = Relationship Quality
RC = Relationship Commitment
Magazine: 1 = reader; 0 = non-reader
Mag_RC is freely estimated (Model A) or fixed to “0” (Model B)
FIGURE 1: THE (STRUCTURAL) CUSTOMER LOYALTY MANAGEMENT MODEL (CLM-MODEL)
4. RESEARCH METHODOLOGY
4.1 Sample
From a database, held by Cendris (a Dutch professional service supplier on direct/interactive marketing)
and containing data from 1.8 million households in the Netherlands (25% of a total of 7.2 million), a
sample of 73,505 addresses was selected. From the database we knew that the people living at these
addresses were customers of at least one of nine companies offering a customer magazine, and that they
had left behind their e-mail address. Through e-mail these addresses were invited to participate in a web-
based survey.
4.2 Procedure
Through the survey we examined the attitudes of readers towards the relationship with their supplier, how
they evaluate the magazine, and investigated their view of the company image as well as their
JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 8, Number 3, 2008 72

4. responseveness to promotions included in the magazine. Also, we examined the effect readership has on
customer’s attitudinal loyalty (commitment). The study also compares the attitudes of people who don't
read customer magazines. Nine customer magazines were taken into account. Three from each of the
sectors automotive, financial services, and retailing, since these are the largest customer publishing
sectors, at least in the UK according to an APA/Mintel survey of customer publications (2005).
4.3 Measures
Relationship Quality (RQ) is emerging as a central construct in the relationship marketing literature
(Smith, 1998). Although there is no real consensus regarding the conceptualization of RQ, there is
agreement that RQ is a higher-order construct consisting of several distinct but related dimensions
(Dorsch, Swanson, and Kelly, 1998). Building on Crosby et al. (1990), we propose customer satisfaction
and trust as the dimensions of relationship quality. RQ is measured using six balanced seven-point Likert-
type scales anchored ‘completely disagree’ (1) and ‘completely agree’ (7). Three items refer to customer
satisfaction. The three remaining items refer to trust. Relationship Commitment (RC) is viewed as a
general attitude of attachment (e.g. Beatty and Kahle, 1988). Relationship commitment is measured using
three balanced seven-point Likert-type scales anchored ‘completely disagree’ (1) and ‘completely agree’
(7).
Willingness to continue the relationship is an indicator of anticipation of future interaction. Willingness to
continue the relationship is considered as an outcome of high levels of commitment to a relationship.
Willingness to recommend the company is considered also as an outcome of high levels of relationship
commitment and conceptualized as an indicator of anticipation of reference. Both willingness to continue
the relationship and willingness to recommend are measured using respectively two and three balanced
seven-point Likert-type scales anchored ‘completely disagree’ (1) and ‘completely agree’ (7).
Image is measured using eleven characteristics describing the sponsor of the customer magazine as
being e.g.: dynamic, reliable, customer oriented, up-to-date, modern, popular, and customer friendly.
Provoked response is measured using a five-point ordinal scale, asking respondents whether they
respond to offers included in the customer magazine (never, incidentally, repeatedly, frequently, always).
5. RESEARCH RESULTS
5.1 Response rate
73,505 Addresses were mailed and invited to participate in the survey. A total number of 11,576 usable
questionnaires were received, resulting in a net response rate of over 18%.
• Completed response: 10,981
• Usable response: 11,576 (18.1% net on 64,064 e-mail addresses
reached )
• Average time to complete: 254,5 sec. (4 min. 15 sec.)
80
73,538 73,505
70 64,064 64,053
60
50
x 1000 40
30
20
12,374 10,981
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FIGURE 2: RESPONSE
JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 8, Number 3, 2008 73

5. 5.2 General analysis
For each sector, automotive, financial services, and retailing, Confirmatory Factor Analysis (CFA) was
applied to the four latent factors in our conceptual model: relationship quality (RQ), relationship
commitment (RC), willingness to recommend, and willingness to continue the relationship. All loadings
were significant and ranged from .69 to .90 (Automotive), from .75 to .95 (Financial services) and from .76
to .95 (Retail), well above Nunnally and Bernstein’s (1994) suggested cutoff of .4.
Cronbach’s alpha values are well above Malhotra’s (1996, p. 305) minimum value of 0.60 for satisfactory
internal consistency reliability.
Table 1 summarizes the results of the CFA and Cronbach’s alpha tests.
TABLE 1: RELIABILITY ESTIMATES AND FACTOR LOADINGS OF THE MEASUREMENT SCALES
Variable Item #
Automotive Financials Retail
RQ .94 .97 .96 Cronbach’s alpha
Satisfaction 1 1 .69 .88 .82 Factor loadings
Satisfaction 2 2 .74 .91 .84
Satisfaction 3 3 .70 .91 .87
Trust 1 4 .73 .86 .77
Trust 2 5 .80 .93 .87
Trust 3 6 .84 .93 .89
RC .89 .89 .89 Cronbach’s alpha
Relationship Commitment 1 1 .80 .75 .76 Factor loadings
Relationship Commitment 2 2 .87 .94 .84
Relationship Commitment 3 3 .80 .86 .86
Willingness to recommend .93 .95 .94 Cronbach’s alpha
Recommend 1 1 .86 .91 .92 Factor loadings
Recommend 2 2 .89 .93 .93
Recommend 3 3 .90 .93 .93
Willingness to continue .83 .87 .90 Cronbach’s alpha
relationship
Continue 1 1 .85 .95 .95 Factor loadings
Continue 2 2 .79 .80 .85
5.3 Relationship commitment
The percentages of readers that perceive a high level op commitment (values 5-7) to the sponsor of the
magazine are significantly higher than the percentages of non-readers that feel committed to the
company (see Figure 3).
The average values for readers and non-readers with respect to relationship commitment differ
significantly for all three sectors. Readers perceive a significantly stronger relationship than non-readers
(see Figure 4).
JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 8, Number 3, 2008 74

6. 100
7
90
80 6
80
70 5,6
5 5,4 5,2
60 68 66 4,9
% 50 Readers Average 4 4,5 4,4 Readers
54
40 Non-readers Non-readers
3
30 38 37
20 2
10
1
0 Automotive Finance Retail
Automotive Finance Retail
FIGURE 3: A LARGER PROPORTION OF FIGURE 4: READERS PERCEIVE A HIGHER
READERS FEELS COMMITTED LEVEL OF COMMITMENT
5.4 Image
Also with respect to company image readers and non-readers differ significantly. Readers of customer
magazines have a more positive view of the company image than non-readers (See Figures 5 and 6).
The results for financial services and retail are similar.
Automotive Automotive
100
7
80
6
60 5
% Average 4
40
3
20
Readers (666) 2
Readers (666)
0 Non-readers (n=922) 1 Non-readers (n=922)
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FIGURE 5: A LARGER PROPORTION OF FIGURE 6: READERS HAVE A MORE
READERS AGREE (VALUES 5-7) ON EVERY POSITIVE VIEW OF THE COMPANY IMAGE
SINGLE ASPECT OF COMPANY IMAGE
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7. 5.5 Provoked response
63% (automotive), 76% (financial services), and 95% (retail) of the readers were found to interact with a
brand as a direct result of reading the customer magazine. That is, only 37% (automotive), 24% (financial
services), and 5% (retail) of the readers indicated that they never responded to coupons, special offers,
invitations or recepies enclosed in the magazine (see Figure 7).
0 0 2
100% 2 2
5 6
90% 17
80%
70% 29
55 Always
60% 68
Frequently
50%
Repeatedly
40%
Incidentally
30% 48
Never
20% 37
24
10%
5
0%
Automotive Finance Retail
(n=672) (n=1706) (n=3270)
FIGURE 7: THE MAJORITY OF READERS RESPOND TO OFFERS ENCLOSED IN THE MAGAZINE
5.6 Customer magazine as driver of RC
We tested the CLM-model (see Figure 1) using the structural equation modeling approach. The
calculations were performed using AMOS, version 16. Since our variables are not distributed joint
multivariate normal, our sample size exceeds 1,000 cases, and we use a relatively small model, we
applied the Asymptotic Distribution Free (ADF) estimation procedure.
Whether the customer magazine generates a commitment effect was tested by comparing Model A (free
estimation of Mag_RC) with model B (Mag_RC = 0). Model A turned out to be significantly better and
Mag_RC had a significant impact on RC. Figure 8 shows the standardized regression coefficients for the
financial services.
2 2
The A-models were significant (χ (83) = 316.866; p = .000 for Automotive; χ (76) = 550.0113; p = .000 for
2
Financial services; χ (79) = 655.188; p = .000 for Retail) which is not surprising given this test’s known
sensitivity to large sample sizes (Bollen, 1989). However, alternative fit indices suggest that the models fit
the data reasonably well: the GFI statistics are .975, .969 and .940 for the Automotive, Financial services
and Retail respectively, and RMSEA = .040, .035 and .040 respectively (Bagozzi and Yi, 1988).
JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 8, Number 3, 2008 76

8. Financials
Continue
0,40
0,54
0,91
RQ RC
0,35
0,56
0,15 0,03
Magazine Recommend
RQ = Relationship Quality
RC = Relationship Commitment
Magazine: 1 = lezer; 0 = niet-lezer
FIGURE 8: STANDARDIZED REGRESSION COEFFICIENTS
6. CONCLUSIONS
Readers of a customer magazine have more familiarity with (Hypothesis 1) and more favorable
impressions of (Hypothesis 2) the sponsoring organization. Customer magazines are an effective way for
companies to increase their image and recognition with the public.
Also, customer magazines inspire to action (Hypothesis 3). A majority of the readers indicated they have
taken action at least incidentally as a result of reading or looking through the publication. From that point
of view, customer magazines affect customer development.
Most importantly, customer magazines reinforce loyalty (Hypothesis 4) and, thus, the willingness to
continue the relationship. Also, customer magazines contribute (i.c. indirectly through RC) to customer
acquisition through word-of-mouth promotion to other prospective or former customers.
In general, our findings suggest that customer magazines are achieving their main objectives with respect
to establishing, developing and maintaining customer relationships. This research has contributed to a
better awareness and understanding of the benefits and qualities of customer magazines. “Done right,
custom publishing connects with your customer on an emotional level and creates a bond between the
reader/customer and the publication – and, importantly, with the company behind that publication” (Pohly,
2008).
7. DISCUSSION AND IMPLICATIONS
Our findings confirm the effectiveness of customer magazines as a medium for building and retaining
loyalty. Based on our results the customer magazine has definitely moved away from the public relations
exercise towards the strategic communication device (Collins, 2007). Strategic planners should seriously
consider customer magazines as a core instrument of any marketing communications campaign.
In particular when efficiency in marketing communication (reduction of waste) and accessibility of the
target market (direct communication) has been asked for, customer magazines are worth taking into
account.
Today, customer magazines have become more than extended shop windows for the company’s
products or services, presented in a bland mix of advertorial (Collins, 2007). Customer magazines have
become an increasingly important component of the marketing mix. This element of the marketing mix is
not just a glamourous and expensive luxury (APA, 2005).
JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 8, Number 3, 2008 77

9. Magazines are able to communicate effectively because the consumer is in control of the media
consumption, as opposed to the intrusive nature of media such as TV and radio. Customer magazines
offer companies a valuable means of communicating with their customers and stakeholders (Mintel,
2006). Customer magazines have an effective role to play as part of the marketing mix. A role that is even
more effective, if the intermediate function of a customer magazine is taken into account. Customer
magazines are the ideal means to point at a company’s website, to refer to exhibits, stimulate (web)store
visits, link to the company’s catalogue, and to explore market research. So, customer magazines are the
ideal means for a cross-media approach (Kleijn, 2008). For that, customer magazines should be
integrated into the mainstream marketing (communication) strategies.
REFERENCES:
• Association of Publishing Agencies (APA), www.apa.co.uk/cgi-bin/go.pl/picture/index.html
• Association of Publishing Agencies (APA), The customer publishing industry. Executive summary
prepared on behalf of the APA by Mintel Consultancy, January 2005, 6 pages
• Bagozzi, R.P. and Yi, Y., “On the evaluation of structural equation models”, Journal of the Academy
of Marketing Science, 16 (Spring), 1988, 74-94
• Baumeister, G., Mehr Effizienz in der Marktkommunikation: Kundenmagazine im Marketing-Mix,
January 2007; 4P Marketing Group, 4 pages, www.4p-marketing.de
• Beatty, S.E. and Kahle, L.R., “Alternative hierarchies of the attitude-behaviour relationship: the impact
of brand commitment and habit”, Journal of the Academy of Marketing Science, Vol. 16, Issue 1,
1988, 1-10
• Bollen, K., Structural equations with latent variables, John Wiley and Sons, New York, 1989
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and E.G. Smit, Content and Media Factors in Advertising, Het Spinhuis Publishers, Amsterdam, 2004
• Collins, M., Magazine Culture – another weapon in the customer relationship armoury, 2007;
www.mycustomer.com/ (downloaded July 20, 2007)
• Crosby, L.A., Evans, K.R. and Cowles, D., “Relationship Quality in Services Selling: An Interpersonal
Influence Perspective”, Journal of Marketing, Vol. 54, No. July, 1990, 68-81
• Dorsch, J.J., Swanson, S.R. and Kelley, S.W., “The Role of Relationship Quality in the Stratification of
Vendors as Perceived by Customers”, Journal of the Academy of Marketing Science, Vol. 26, No. 2,
1998, 128-142
• Kleijn, B., Nederlanders over bedrijfsbladen, Logeion, The Hague, 2008
• Mintel, The customer publishing industry – 2005/2006, Executive summary prepared on behalf of the
APA by Mintel Custom Solutions, August 11, 2006, 10 pages
nd
• Malhotra, N.K., Marketing Research: An Applied Orientation, 2 . Ed., Prentice Hall, New Jersey,
1996
• Nunnally, J.C. and Bernstein, I.H., Psychometric theory, McGraw-Hill, New York, 1994
• Pohly, D., “Custom Publishing: Why customers – and marketers – are embracing the marketing that
receives a warm welcome”, 2008, The DMA Bottom Line, downloaded Feb. 2008 from the DMA
online library
• Smit, E., Ver-BINDING: interne en externe relatiemedia als verbinding tussen mensen en
organisaties, Oratie, Vossiuspers, University of Amsterdam, Amsterdam, 2007
• Smith, J.B., “Buyer-Seller Relationships: Similarity, Relationship Management, and Quality”,
Psychology and Marketing, Vol. 15, No. 1, 1998, 3-21
AUTHOR PROFILE:
Dr. Jos M.C. Schijns, MBA earned his Ph.D. at the Maastricht University, the Netherlands in 1999. He
earned his MBA at Webster University (“Academic Honors”). Currently he is an assistant professor at the
Open University of the Netherlands, School of Management, and head of the Cendris Research Center.
____________________________________
* The empirical part of this article was made possible through the generous support of the Cendris
Research Center (CRC). Cendris is a subsidiary of TNT, the Dutch national postal services.
JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, Volume 8, Number 3, 2008 78