Why Many Companies Fail to Combat Churn Effectively

Disruption has long been a challenge in media and entertainment, but recent research highlights its growing impact. Forbes It found that 46% of US households canceled their streaming subscription over the past year due to costs, while… Samba TV Reports indicate that 44% stick to only one or two platforms every six months. These statistics reflect continued tightening of consumer budgets and decreased resistance to canceling subscriptions. As a result, KPIs, such as revenue generation and customer lifetime value, are now at the forefront, making retention strategies essential to increase profitability.

Although the disorder is not new, it is important to note that it is on the rise

Its churn rates Doubled Since 2019, leaving broadcasters in a frenzy. This increase is due to many factors, including a huge range of platform options, attractive promotions from competitors, and viewers switching services more frequently to get their favorite programming. And the solution? Data.

To effectively combat this change, broadcasters must leverage the potential of their subscriber data

Data analytics can provide deep insights into viewer behaviour, preferences and habits, enabling broadcasters to anticipate potential change and implement proactive measures. However, the latter Omdia Research It reveals that only 13% of streaming services have standardized their data across the enterprise, often relying on manual processes. This suggests that much of the streaming industry is lagging behind in developing their subscriber data strategies to effectively address change.

Here are three key ways broadcasters can make better use of their data to combat change.

• Make decisions based on standardized and reference data: For most OTT platforms, data is scattered across different departments or systems. This siled approach often makes it difficult to comprehensively understand customer behavior. As a result, teams focus only on their specific area of ​​responsibility, which may ignore broader trends influencing change.

Leveraging unified data can help overcome this problem and provide a comprehensive understanding of customer interactions, from content consumption to billing and customer support. This could allow for more accurate identification of churn drivers. By comparing a platform’s churn rate to benchmarks, it may be easier to identify specific factors contributing to customer attrition. Together, this can help make informed decisions about content acquisition, pricing strategies, and customer retention initiatives.

For example, a high rate of churn among subscribers who recently experienced technical difficulties may indicate a need for improved customer support.

By consolidating all subscriber data sources in one place, Cleeng’s ChurnIQ dashboard enables teams to gain easier insights and develop effective cross-platform strategies to improve retention.

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• Leveraging purposeful segmentation and AI: Leveraging customer segmentation and machine learning can help build more accurate and personalized models to predict churn.

Technology can segment customers into distinct groups based on lifetime value, engagement levels, satisfaction ratings, subscription plans, and personal preferences. Machine learning algorithms can analyze extensive customer data, including churn history, viewing patterns, payment information, and lifecycle stage, to identify patterns and predict future behavior. In doing so, these models can help identify at-risk customers early, allowing proactive intervention with retention efforts tailored to specific customer segments. For example, you could offer a discount to a high-value customer who is nearing the end of their contract but showing signs of declining engagement.

Cleeng’s new AI Assistant uses generative AI to provide broadcasters with the answers they need instantly.

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• Identify actionable opportunities and implement targeted interventions:
  Collecting and analyzing data across different stages of the subscriber journey – such as sign-up, trials, upgrades, discontinuation, and re-utilisation – enables the identification of high-impact groups, including those who are vulnerable to discontinuation or likely to respond positively to personalized offers.

By integrating this data with engagement tools and implementing targeted interventions dynamically and quickly, you can reduce sluggishness and boost subscriber retention. For example, you can set up dynamic triggers to automatically deliver relevant promotions or content recommendations based on individual customer behavior. Additionally, you can use A/B testing to try out different retention strategies and determine which methods are most effective.

This way, using OTT data platforms, you can deliver personalized experiences and improve customer retention throughout the subscriber journey.

Bottom line: Lasting relationships with subscribers are key to SVOD success.

If profitability is your focus, you can’t ignore employee retention. Taking a strategic approach, leveraging data analytics and a supporting set of tools can guide you to reduce sluggishness and build lasting relationships with your subscribers.

Cleeng offers a comprehensive perspective on subscriber management and retention with its SRM® suite. You can leverage them to enhance your journey, explore them from multiple angles, and act on the results. Specifically, ChurnIQ is a prime example of how subscriber data can be used to combat churn. It predicts churn with up to 95% accuracy, taking into account red flags such as changes in viewing patterns, decreased engagement, or shifts in payment behavior. Latest ChurnIQ Upgrades: Churn IQ Studioand ChurnIQ AI Assistant Combining personalized reporting with real-time AI insights to enable broadcasters to quickly identify at-risk subscribers and implement targeted retention strategies.

[Editor’s note: This is a contributed article from Cleeng. Streaming Media accepts vendor bylines based solely on their value to our readers.]

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