Using your data work to drive revenue growth in OTT doesn't need to be a monumental task.
In this article we list 5 high potential customer segments that you can set up and target with marketing actions today.
OTT product managers and directors have diverse roles. To run a successful service, they need to quickly become experts on a wide range of topics. And with so much to think about, they need maximum returns from the limited time they can invest.
The real key to building high value customer marketing campaigns in OTT is momentum. Analytics platforms like ChurnIQ give you lots of data work with. That's a great start. The next step is easy access to opportunities to act on that data.
With that in mind, here are 5 high ROI customer segments you can target in ChurnIQ. In each case, smart marketing actions focused on these users can make an immediate impact on your OTT revenues.
1. Long term free users
Free users are a large pool of growth potential for your OTT service. In ChurnIQ, we chose 'active' free users as one of our key customer segments for this reason.
Active means that they have a recent login, but the key to this group is that they keep coming back. This means they value your platform, but need the right trigger to buy an offer.
Action: Target with teasers / 20% off an annual subscription or pass.
2. Trial expiring in 3 days
With so much effort invested in generating new trial sign ups, it's easy to forget about the other end of this cycle. Streaming services may often convert just one in every two free trial subscribers. This can mean that the non-converting 50% are deemed acceptable losses.
Yet, intensifying your content discovery efforts at the tail end of the free trial is very effective. And is as important as your onboarding flow for producing conversions.
For a typical OTT service, 100 extra conversions equates to $3000 - $5000 in lifetime revenue. Small changes, but major returns.
Action: Highlight premium content that is only accessible to subscribers.
3. The Honeymooners
Subscription upgrades are without question the most powerful way to drive customer value in OTT. If you are in a hurry, a great upgrade strategy is to target customers earlier rather than later in the customer lifecycle.
Customers who have paid for your service at least two times are a great group to focus on. They are still very fresh to your content, with lots still to discover. This is the point where customers are often most receptive to switching to a longer subscription plan.
What's the payoff? Switching from a monthly to annual plan equates on average to 2.3 factor uplift in customer lifetime revenue.
Action: Propose upgrades (incentives optional) to monthly customers who successfully renew twice.
4. Annual subscribers cancelling in the previous 24 hours
Annual subscriptions in OTT can sometimes have a low renewal rate. As much as 10% of your current annual subscriber base may cancel their next renewal.
This group represents a lot of revenue that is about to walk out the door. So this segment (above almost all others) deserves special attention. Coupons are definitely a key strategy here, particularly as price is a bigger factor for annual subscribers than for monthly subscribers.
Action: Experiment with 10% & 20% discount rates - framed as 'free months'.
5. Repeat subscribers
Subscribing, churning and then re-subscribing is very much part of the natural customer cycle for streaming services. Too many services underestimate the potential revenue in their churned customer pool.
Our data science research has found that services can potentially reactivate 3-4 times as many churned subscribers as they typically do - if they act in the right time frame. The first 60 days are when 70% of all win-backs happen, outside of highly seasonal sports content.
Focusing on customers who have more than one previous subscription is a great way to start winning back more of these last customers to your service.
Action: Contact churned subscribers within 30-60 days of churning where they have >1 previous subscription.
Interested to learn more about growing OTT revenue using subscriber segments?
To learn more about setting up revenue boosting segmentation strategies check out our free guide.
For Cleeng customers - go to your Segment dashboard to find the customer segments mentioned in this article.
