Focusing on long-term subscriber loyalty will help businesses to grow by building audiences incrementally, says Cleeng senior product director Luc Bleylevens.
As the OTT space continues to evolve and new players enter the arena, consumers have more choice, freedom and flexibility than ever before.
Presently, OTT service providers need to offer the perfect blend of flawless user experience and content choice to retain their existing subscriber base – and in today’s landscape, retention is the aim of the game. So why is there this need to focus on subscriber retention?
We’ve reached a point where retention is as important, if not more so, than acquisition. And, It’s my belief that by focusing on Subscriber Retention Management (SRM) instead of the classic Customer Relationship Management (CRM), you will grow faster in this space. I’ll explain why.
The consumer conversion cost for OTT players is on the rise. For instance, I was dumbfounded when I read that the marketing cost of new subscribers for Netflix in the US alone stands at almost $100. Rising acquisition costs add pressure to keep viewers beyond a few months—meaning that subscriber retention is far more economically viable for today’s OTT providers.
By drilling down into your subscriber retention rates and focusing on long-term loyalty, you will help your business to grow by building your audience incrementally while allowing yourself to invest in other key areas of the business, rather than burning up your budget trying to convert new customers all the time.
So, what type of data you need to power your Subscriber Retention Management stack? Well, in this Age of Information, data will give you the insight you need to improve your customer retention initiatives. You can essentially fight churn with data.
To assess the performance of your subscriber retention rates with ease, you should ensure that Subscriber Retention Rate is one of the three main key performance indicators (KPIs) in your data stack – if not your North Star metric.
By closely monitoring your subscriber retention rates along with a mix of other valuable performance metrics, you’ll gain the information you need to make key improvements to your subscription models, your platform and your service, while refining your retention strategies to ultimately reduce churn and foster loyalty.
From a data perspective, there is a transformation from a ‘system of transactions’ to a ‘system of engagement’ happening. This takes reliable transactional data and builds on that to bring to the surface more data around the individual subscriber allowing for more – and more informed – subscriber engagement opportunities.
The OTT landscape is becoming increasingly competitive. To thrive, and indeed survive, in tomorrow’s world, you need to keep your subscribers on-board. Focusing on your subscriber retention rates will help you do just that, whilst a failure to do so could prove detrimental to your business.
Luc Bleylevens is senior product director at Cleeng