Over the past few weeks, we have talked a lot about the types of churn and different ways to combat it. Many of the tactics used to reduce churn focus on how to keep customers subscribed once they become a paying customer. While tactics such as credit card updater services, and save/win-back campaigns are effective and vital to keeping churn numbers down, they are reactionary. When you are in the position of saving a customer, you are already in an uphill battle to keep them long term. The battle to keep customers in a content subscription service can start before they even make it to your site.
Many consumers first engage with a subscription service because they are chasing a piece of content that intrigues them. They may be introduced to your service from an ad campaign, a social post, an email, etc. In many cases, their awareness is centered on the content and less on the content provider. As we discussed last week, having a deep content offering is critical to keeping customers long term. A single piece of content could be what grabs their attention.
The goal of marketing outreach is to bring a customer in the door, it’s the job of the service to make them want to stay. Targeting the right customers at the right time, providing a wide variety of compelling content, creating an intuitive product, and building a community within the service are all measures of churn reduction. To put it in real terms, I may first go to a news service because I am interested in a story a friend shared about gun control, but once I am there my interest could be piqued by the latest thoughts on the blockchain phenomenon.
The goal of marketing outreach is to bring a customer in the door, it’s the job of the service to make them want to stay.
There are many trigger points in the decision to subscribe.
- How did I find the site?
- Was it easy to find the content I am after?
- Is the app or site compelling and easy to use?
With little information can you present additional content that is compelling? Is it a good price point? You get the idea. Like a great sports team, the customer experience is made up of many parts that have a specific role in supporting the star players, in this case, the content.
One of the most important factors in having a low churn number is attracting the right customers. It is an expensive process to attract and cultivate profitable users. Many marketing professionals fall into the trap of overspending to fill up the top of the funnel. However, bringing in users that don’t convert from a trial or leave quickly can be detrimental to your service. You will spend a disproportionate amount of time reacting to attract customers you have already lost. In fact, according to Localytics research, “Some 58% of mobile app users will become inactive within the first 30 days after downloading an app, and three-quarters will churn within the first 3 months. But churn rates are significantly lower among users who log more sessions in the first days post-download, down to 29% among those who use an app 3 times in the first 3 days after download.”
Some 58% of mobile app users will become inactive within the first 30 days after downloading an app
The Wicket Scorecard pulls data from all of your campaigns and correlates that to your other key metrics and helps you understand which campaigns are driving users that convert, stick around and ultimately become your most profitable subscribers.
In this graph, you can see which are your most effective acquisition campaigns. You can see which campaigns drive the most trials and conversion, but also which tend to stick around. You are able to break this down by campaign source, channel or device type.
To take this even deeper, you are able to look deeper and understand:
- How different activities are performing across the customer lifecycle
- What drives traffic to your site
- Which delivers a higher yield of trials and ultimately paying users
As you can see, you can start to get a quick view of which channels provide the highest conversions to paying customers, and ultimately lower trial breakage and churn numbers. The Wicket Scorecard goes even deeper to provide yield results for each specific campaign you are running.
This gives you the power to focus your very important acquisition dollars on the specific content, device, and campaign that drive the highest lifetime value and profit for your business.
Getting back to content, with the Wicket Scorecard, you can also dive into the specific content that drives user activity and new trials, raving fans, binge watchers, but most importantly you can jump right to bringing in the customers that deliver the highest lifetime value.
Leveraging the tools in the Wicket Scorecard allows you to leverage the content with the widest appeal and target in the specific acquisition channels that deliver the best yield and rope in customers that are likely to stay for the long-term.
This doesn’t mean that you shouldn’t employ every tactic at your disposal to combat your churn numbers. We work with all of our customers to help save and win-back lost customers, but it does help to grow and keep a subscriber base happy and engaged.
For help in employing the techniques we’ve discussed in this series on subscription churn, connect with us to talk about how the Wicket Scorecard can benefit your video business and get a demo of how our solution can help you grow the lifetime value of your audience.
The Wicket Scorecard levels the playing field. Increasing competitiveness of SVOD service offerings, leveraging data to deliver a greater, customized experience, and get predictive in customer retention efforts. Turn your data into an effective retention tool, reduce churn rates, and create raving fans of your service. See how the Wicket Scorecard can help you recognize and reduce churn for your video business and begin to maximize audience lifetime value. Download our Understand & Combat Subscription Churn whitepaper.
Tags: churn • content engagement • conversions • trials