With the number of SVoD services continuing to grow, consumers are spoiled for choices. And knowing the cost of acquiring new users is significantly more than retaining the subscribers you already have, you might be thinking about ways to increase subscriber loyalty.
One strategy you can use is to encourage users who are satisfied with your service but only maintain a monthly subscription is to move to an annual subscription instead. Longer-term subscriptions typically come with a discount. So it’s a win-win situation for the subscriber and for the video service.
Determine the Level of Discount
It’s up to you to determine the level of discount offered for the annual option. Whether you use customer data to determine this or not, it is best to experiment and iterate to find the best pricing. If your service is offered across many regions, you may need further testing as subscriber preferences and tolerance can vary by region as well.
The Benefits of Annual Subscriptions
There are several reasons why you would want to encourage subscribers to sign up for an annual subscription:
- As we stated, it can increase subscriber loyalty. Longer subscriptions equate to higher LTV
- Our Customer Happiness Index correlates users who maintain an annual subscription to an improved CHI score
- Increased cash flow
- Reduced subscriber churn
- Increased time to collect feedback and improve your service
Formulate a Plan
So, now that we know the benefits of encouraging subscribers to move to an annual subscription, it’s time to formulate the plan for outreach and launch your campaign.
Timing is Key
If someone doesn’t sign up for an annual subscription immediately, you need to be sure they’re actively using your service before approaching them to switch to an annual plan. You don’t want to seem too eager. A good time to make the offer is around the 3-month mark. Be sure they’re actively using the service before making the pitch.
Communicate with Them Using the Channel They Prefer
Be sure to identify the best communication channel for your subscribers. Where did they sign up originally? Do they have a specified channel in their account preferences? Do they use the mobile app? Maybe you could try push notifications. Whatever you choose, be sure to test to optimize the outreach process.
Build Your List
Using the subscriber export feature in Wicket Scorecard, you can build the list of users you would like to approach for an upgrade to the annual subscription. An example of the settings for export would include:
- Status – Active
- Tenure – 3+ months
- Last Video View – Within 30 days
- CHI Score – Happy
Using these tools and strategies will set you up for a good foundation in your outreach to encourage monthly users to upgrade to an annual subscription. Our Customer Success team has helped many of our customers launch campaigns similar to this kind. If your team would benefit in developing subscription upgrade campaigns through an integrated data approach such as this, be sure to reach out to us.