Is Content Enough to Keep Customers Loyal?
When it comes to pay-TV, content may be the long-reigning king, but there are other key factors that come into play when considering how to keep customers subscribed to a service. Our research indicates that globally, nearly half of OTT subscribers plan to cancel their service within six months.
In the UK, 31% of consumers join a pay-TV service because of the choice of content, yet 35% cancel because it’s too expensive, making value for the money a huge factor in determining both signups and cancellations. In this post, we’ll offer four ways to keep your customers loyal and take a deeper look into how loyalty differs by geographical region.
4 Ways to Cultivate Customer Loyalty
1. Proactivity – Thanks to social media, many consumers join an OTT service solely for the purpose of watching a specific show that has garnered a great deal of media attention. The dangers of this is that once the show ends, a large number of subscribers may go right out the door with it and leave your service. To combat this, once operators know that a popular show is going to end, it’s important to pre-empt your customers leaving by recommending a similar show for them to watch.
2. Offers – Our research indicates that consumers see OTT as a flexible service they can dip in and out of, canceling, moving between providers, and holding multiple subscriptions at one time. However, quality content coupled with the right offer, such as a free trial, can boost subscription numbers and entice customers to stay with your service for longer.
3. Customer experience – Strong content must be supported by a seamless customer experience across all ‘Decision Moments’. This requires a shift from a billing-centric mindset, to a subscriber-centric approach aimed at increasing content consumption, while proactively engaging subscribers, resulting in the increased acquisition, retention and growth of your customer base.
4. Marketing strategy – Building a strong marketing strategy around all Moments – from ‘Find’ and ‘Join’ to ‘Leave’ and ‘Win back’ – is critical to increasing customer loyalty. Social media should be included in this plan, as it plays an important role in generating hype around popular show launches.
Loyalty by Region
Cost is the biggest determining factor in cancelling a service, among all regions surveyed – UK (35%), Germany (27%), US (30%), Australia (24%), Brazil (15%), Singapore (29%).
Rich content is the number one reason for joining – UK (31%), Germany (40%), US (37%), Australia (40%), Brazil (27%), Singapore (32%).
Value for the money comes in at a very close second – UK (33%), Germany (24%), US (37%), Australia (33%), Brazil (30%), Singapore (32%).
Clearly, consumers want more than just content from their OTT service in order to remain loyal. Each ‘Decision Moment’ that they are a part of needs to be a great experience. For more information on this, contact us and download our Migration Guide to a subscriber-centric approach.