
15 September 2016 Leveraging Data to Combat Customer Churn Share
The television industry has long known the importance of data. But are operators using data effectively? It's imperative for operators to take charge of their data in an effort to truly understand their subscriber base and combat customer churn. At a rate of nearly 5% six times greater than satellite and cable TV providers churn is a massive issue for pay-OTT operators. The reality is that service providers can't stop people from having the urge to leave or actually leaving.
The good news is that operators have many data points at their fingertips and can use metrics such as usage data, consumption, geography and demographics to determine if a user is showing signs of leaving. Key insights like this allow operators to engage with subscribers early on and take preventative measures. This post will highlight the importance of using data to target wayward subscribers with personalised communications and offers, stopping customer churn in its tracks.
Shifting Perspective Just because a subscriber says they want to leave, doesn't mean it's time to throw in the towel. Pay-TV operators must change their mind-set. Potential defectors should be viewed as a big opportunity. This is a great time to reconnect with the customer, finding out why they want to cancel and how to better meet their needs. Specifically, the last two weeks is the best time to engage and win the customer back right before they leave. However, should they decide to leave, it's okay to let them go. By making the cancellation process easy, they are more likely to return later.
Optimising Insight Having a consolidated view of previously captured data such as what has been viewed, at what time and on what device, along with geography and demographics can equip operators with the intelligence needed to pre-empt a customer showing signs of leaving and target them appropriately.
Educating Users Informing subscribers of their options, rather than leaving altogether can generate more profitability for operators. By using insight into customer activity to educate the user around different packages - be it an upgrade or downgrade from their current service - that may work better for them, or a providing a counter offer, there's a much greater chance for subscribers to stay.
Soliciting Feedback For those that do leave, an exit survey can help give a full picture of the viewer and prove incredibly useful in a win back campaign. Reasons for leaving such as better pricing from competition, lack of content or personal issues can help to create a more effective approach for the right time and offering to target these users with.
Following Up An example of a well-timed outreach campaign would be to target a user who previously binge watched a particular series. When the new season is due to launch, this is the perfect opportunity to reach out and highlight that there are new episodes coming, while offering them a taster to come back. Staying in touch with past subscribers in a meaningful way is the key to winning them back.
When a former subscriber shows interest in coming back to a service there should already be a wealth of data to use for targeting them, such as basic personal info, previous packages, viewing patterns, etc. Ultimately, it always comes back to data. It should be gathered in the beginning, in the end and throughout the entire subscriber relationship in an effort to create a better experience for users throughout each key decision moment in the subscriber journey. As well as increased revenue opportunities for operators, like maximises customer satisfaction and loyalty over the long term.
For more tips to counteract churn and win back subscribers download our new ebook.
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