Customer acquisition costs for streaming services are on the rise. Lower overall spend, reduce ad wastage, and increase your conversion rate with lookalike campaigns powered by Wicket Scorecard.
Cast your mind back to 2018. Zuckerberg had to testify at the senate, Meghan Markle married Prince Harry at Windsor Castle, and France won the World Cup. In the OTT arena, an equally notable event happened: Netflix started spending $100 to get each US subscriber. Just a year later, that figure had doubled.
Saturation in the OTT market has caused customer acquisition costs to surge. They’ve risen year-on-year. And while not everyone is shelling out Netflix-sized numbers to lure in new users, this market shift has still had a knock-on effect and created a balancing act for any streaming business to strike.
The SVoD game is the same as it was before: get the subscriber, keep the subscriber. However, it’s now more important than ever to find ways of reducing how much gets spent to attract new subscribers in the first place. Not only in order to lower the overall payback period and enhance profitability among increased competition, but to grow customer lifetime value.
Tackling the rise in customer acquisition costs
The fact that customer acquisition costs have risen so much suggests it has become harder to ensure promotions are being put in front of the right people, requiring greater marketing spend to achieve the same results. But that doesn’t have to be the case. Not if you’ve got a wealth of subscriber insight at your fingertip.
With the right approach, you can remove the guesswork from running these campaigns, reverse-engineering the customer acquisition process to ensure you stand out in front of the right audience.
This is done via a lookalike campaign, which is a way to reach new people who are likely to be interested in your service because they’re similar to your best customers. The Wicket Scorecard – and its Subscriber Export feature – makes this quick and easy to do, and with a greatly enhanced likelihood of success.
How data supercharges marketing success
The key ingredient for any successful lookalike campaign in the OTT industry is to establish a baseline happiness metric for each subscriber. Ordinarily, this can be complex and difficult to establish. It requires collection and harmonization of data from across your systems and distribution partners to uncover a unified view of your SVoD business, which takes considerable time and effort. In many cases, prohibitively so.
To generate the CHI Score, Wicket Scorecard pulls from all your data sources and uses machine learning to accurately identify how engaged and happy each subscriber is overall. A higher CHI Score means greater loyalty and affinity with your content offering, which are both hugely valuable metrics for a successful lookalike campaign.
Getting a measure of subscriber health in this way means the Wicket Scorecard can provide a unique perspective on what warrants a loyal subscriber, as well as what has turned them into a fan of your service. From there, the goal is to find more users like them.
Underpinning a lookalike campaign with data-driven insights like this not only increases the chance of new users converting based on being a good fit for your service but vastly improves the likelihood they will stick around for months to come.
Putting this into practice
After Wicket Scorecard has generated this key ingredient for success, Subscriber Export makes it actionable with the ability to export based on highly contextual scenarios.
After choosing the seed list you want to use, such as those with a high CHI score, the Subscriber Export feature allows you to either download that data or send through direct integration in a preformatted structure for social networks (as well as HubSpot, Mailchimp, Salesforce, and a range of other platforms), streamlining this process and further reducing operational costs.
Check out the Facebook, Twitter, and Google Ads posts in our knowledge base for a step-by-step guide on how to run targeted campaigns on those networks using Wicket Scorecard. All these platforms allow you to advertise to users that are similar to the list you provide. And because that list is of your best subscribers, if it’s based on users with a high CHI Score, those you reach will be much more likely to convert.
Deeper segmentation with Wicket Scorecard
Other types of lookalike segments can be created, too. As Wicket Scorecard makes it easy to see how viewers interact with content and the service itself, it’s possible to track the relationship between different assets and blockbuster titles.
By knowing what new users do when they first sign-up, what kept their attention, and how viewers of one asset overlap with fans of another, it’s possible to run content-specific lookalike campaigns to fans of a certain show that are talking about it on social media, based on content they have expressed a deep interest in.
In turn, this helps establish targeted segments of subscribers with similar behaviors, which can be used for their own highly targeted lookalike campaigns at different points in the year. For example, ahead of the premiere of a major hit series on your streaming service.
Supercharge your lookalike campaigns with data-driven intelligence
UMC Case Study
UMC Case Study
There are several benefits to the Wicket Scorecard approach:
- Identifies the traits of your happiest customers, creating an ideal profile to convert more subscribers just like them
- Reduces the likelihood that new subscribers you attract to your service will churn quickly, lowering customer acquisition costs in the long run
- Grows overall lifetime value, making your promotional campaigns more profitable
- Enables you to intelligently target new prospects in interesting ways
- Greatly reduces operational costs
Similarly, having access to a unified data dashboard with the Wicket Scorecard allows you to work out who’s likely to churn. This enables you to go on the offensive for both attracting new subscribers and retaining existing ones, further bolstering the bottom line.
SVoD businesses need to do everything they can to get a handle on rising customer acquisition costs. Failure to do so will only prolong the payback period and can result in a steadily rising cost base. Fortunately, your answer to one of the industry’s biggest challenges is there for the taking. It’s held within your service. All you need is the right audience insights platform to unlock it.
Schedule a demo to see how Wicket Scorecard can help dramatically lower customer acquisition costs.
Tags: acquisition • actionable insights • Customer happiness • lookalike • Subscriber export • SVoD