While Content May Be King, Customer Experience is Queen
The global pay-TV market continues to heat up, with an estimated 1 billion subscriptions up for grabs by consumers in 2017, according to analyst firm SNL Kagan. Here at Paywizard, we’ve done our own homework, conducting a survey of more than 6,000 consumers in six television markets in November 2016 – Australia, Brazil, Germany, Singapore, the UK and US – examining consumer attitudes and actions when it comes to customer experience and TV spending. Here’s what we found:
Experience Matters – Traditionally, content and cost have been the top two most important factors for consumers when selecting a pay-TV service. However, times are changing, with customer experience becoming just as critical to the decision making processes of many TV subscribers. The market has matured to a point where operators can no longer rest on their laurels, focusing only on securing fresh content, consumers are demanding more.
Loyalty is Earned – Our research reveals that one in four consumers surveyed have cancelled a pay-TV service within the last 12 months, due to a poor customer experience. Moreover, a whopping 84% confessed that they would cancel their subscription if the service and support became poor and the company seemed out of touch with their needs and preferences. We also found that 46% of all consumers have retained a digital pay-TV subscription they “might otherwise have terminated” because of positive customer experience, proving that consumers are loyal to those that are loyal to them.
Opportunities Abound – There are 8 key decision moments in the subscriber lifecycle – Find, Join, Consume, Upgrade, Downgrade, Bill, Leave and Win back. This represents eight different occasions for pay-TV operators to win the hearts of consumers by providing a superior customer experience. Each step along the way offers a unique opportunity to interact with OTT subscribers, offering a friendly, engaging experience.
Revenue is at Stake – Poor customer experience is costing the pay-TV industry billions in lost revenue each year. This is a critical factor that must be immediately addressed in order to attract and retain customers, build customer loyalty and satisfaction, and ultimately increase revenue and ARPU. Ignoring the importance of customer experience would be a grave mistake for any pay-TV operator. The bottom line depends on it.
Operators that want to continue to grow their subscriber base will need to shift gears by making customer experience just as much of a priority as content. More and more pay-TV operators have both great content and competitive prices, but those that truly cater to the consumer will surely win the day.
Download our research paper entitled ‘Facing the perils of failed customer experience’ to learn more.