In the ever-evolving landscape of subscription video providers, maintaining profitability has become a significant challenge. With growing competition and volatile subscriber churn rates, it is crucial for direct-to-consumer (D2C) video platforms to focus on maximizing their return on investment (ROI).
In this blog post, we will explore the three primary components of video e-commerce ROI: average revenue per user (ARPU), platform costs, and service efficiency. By understanding these components, D2C video platforms can develop effective strategies to remain competitive and boost their ROI.
Cleeng will be exhibiting at the 2023 NAB Show, offering an excellent opportunity to discuss predictive churn solutions and platform scalability that could significantly impact ROI. Join us in Vegas to explore how we can work together to enhance the ROI of your video e-commerce platform. Book a time
3 ways to increase video e-commerce ROI
We have gathered the most effective strategies for boosting ROI and used Cleeng customer data to estimate how effective this technique can be for your business.
1. Ignite your ARPU with a data-driven approach to churn
If you're a D2C video platform struggling to maintain profitability, it's time to focus on maximizing your average revenue per user (ARPU) through a data-driven approach to churn. By reducing your customer churn rate and retaining subscribers for longer, you can unlock more revenue potential and remain competitive in a crowded market. Here are some of the features that can help you ignite your ARPU with a data-driven approach to churn:
- Tailored pricing and upselling recommendations. With granular customer insights, you can experiment with different offer types and prices, to locate the ideal subscription that will keep your customer engaged. This feature can help you increase revenue by up to 15% and retain customers for longer.
- AI churn prediction. Predictive churn solutions can help you identify at-risk customers before they churn and take action to retain them. By leveraging AI-powered churn prediction, you can identify and save up to 25% of at-risk customers, which can significantly impact your bottom line.
Image: Example from Cleeng's Churn Prediction Dashboard.
- Specialized OTT customer support team. Providing exceptional customer support is essential for retaining subscribers. Pairing this with advanced customer support analytics will make it even more effective. A specialized OTT customer support team can help you increase customer retention by up to 50%. This team is equipped to handle the unique needs of OTT customers, providing fast, effective support to ensure they have a positive experience with your platform.
- Dashboard designed for media & entertainment. To make your data actionable, you need a dashboard that is designed specifically for the media and entertainment industry. This dashboard can help you track the data that matters, providing insights into customer behavior, engagement, and more. By understanding customer needs and preferences, you can develop retention strategies that keep them coming back for more.
Image: Example from Cleeng's payment analytics dashboard.
2. Cut costs by 50% with streamlined spending
In today's crowded D2C video market, cutting costs is essential for boosting ROI and remaining competitive. Here are some features that can help you cut costs by up to 50% with streamlined spending:
- Self-service options and AI chatbots. Providing customer support can be expensive, but it doesn't have to be. By leveraging self-service options and AI chatbots built for OTT customers, you can reduce support costs by up to 80%. These solutions can help customers find answers to common questions and resolve issues quickly and efficiently.
Image: Example of Cleeng's AI chatbot on a client help center.
- Tailored dunning settings. Payment recovery can be a challenge, but tailored dunning settings can help. By customizing payment retry settings to your audience’s needs, you can improve your payment recovery rate by up to 50%, helping to reduce revenue loss and ensure a stronger ROI.
- Reduce OTT platform launch costs. Launching a new OTT platform can be expensive, but it doesn't have to be. By partnering with OTT experts specialized in efficient SaaS launches, you can reduce launch costs by up to 70%.
- Predictable pricing and efficient billing. With predictable pricing and efficient billing, you can easily reduce spending and avoid surprises. By paying per Managed User, you can enjoy a streamlined cost structure that makes it easy to manage your budget and control costs.
3. Save time with quick & efficient operations
Efficiency is crucial when it comes to managing an OTT platform, which is why having a streamlined, easy-to-use system is so important. The right platform can help save you time and hassle, so you can focus on growing your business. Here are some of the features of our platform that can help you save time and increase efficiency:
- Efficient sales tax processes. We understand that sales tax management can be a time-consuming and complex process. That's why our platform has features to help you manage sales tax more easily, saving you up to 90% of your time.
- Specialized customer support. Our specialized OTT customer support team can help you improve your first-contact resolution rates by up to 60%, so you can provide better service to your customers and improve their overall experience.
- Comprehensive documentation. Our platform comes with comprehensive documentation that covers everything you need to know about using our system, so your developers can adapt to the software easily.
- Multi-tenant system. Heavy engineering investments and maintenance costs can be a drain on your time and budget. With a multi-tenant system, you can reduce these investments by eliminating custom work and leveraging a platform that is built to scale. On a platform designed to be easy to launch and manage, you can launch a best-in-class OTT platform in under 3 months.
Meet with our experts at NAB
Are you ready to jumpstart your ROI? Meet with our team at NAB to discuss how we can support your platform’s scalability, retention and revenue improvement goals.
