Increasing customer loyalty and retention is crucial to growing revenues for any SVOD business. But with so much to do and little time to spare, you’ll need tools like ChurnIQ to help you identify action-ready insights before subscriber churn eats into your profitability.
What is ChurnIQ?
ChurnIQ is a tailor-made subscriber retention data solution that helps streaming service providers realize their true revenue potential. This churn prevention analytics toolkit is designed to centralize the critical events of a subscriber's lifecycle in their content streaming journey. With this, it gets data ready to use for marketing.
Broadcasters can leverage its intelligence to visualize the entire subscriber journey and clock in results like:
- Reduce churn rate by 30%
- Predict churn risk with 95% accuracy
Learn more about this game-changing solution for broadcasters to burn the churn and increase subscriber loyalty.
Why churn is a significant challenge for subscription businesses
Churn is costly for subscription-based streaming businesses as it:
- Directly depletes revenue: In any recurring billing model, churned customers directly impact revenue collection, derailing profitability.
- Increases acquisition costs: Maintaining the same level of revenue requires additional efforts and expenses to expand customer acquisition, which negatively impacts on the bottom line.
- Impacts business reputation: Churn often has a cascading effect on a business's reputation. Customers who churn out of a negative experience create negative word-of-mouth publicity.
This damages a streaming platform's image and makes new subscriber acquisition even more difficult and costly. This issue becomes pronounced, primarily if the business cannot address the underlying cause of churn.
Read More: The Correlation Between Subscriber Churn and Lifetime Value
According to Antenna Research, churn levels across the industry are rising. They have increased +34.5% YoY, from 4.6% in June ‘22 to 6.1% in June ‘23. Cleeng Research states that the industry's average active churn rate for the first half of 2022 was 4.7%. ChurnIQ's churn management capabilities come to the rescue to address this situation.
The benefits of using ChurnIQ for customer retention
ChurnIQ's beauty lies in its model design. It is tailor-made to improve broadcasters' revenue and enhance subscriber loyalty. By bringing data from transactions, subscriptions, and users together in one place, broadcasters can deliver the best customer experience based on user behavior and experiences.
The tool uses a data model called the retention journey to support subscriber retention analytics and strategy building. It captures and aggregates data on customer journeys across the subscribers' lifecycle. This aggregation includes information across aspects like subscriber-related data, engagement data, information from apps like Apple, Android, and Roku, or financial information like MRR, Revenue stats, LTV, etc.
It then examines each key touchpoint and event in the subscriber journey and condenses that information centrally in the broadcaster's data environment. This is then available for automated export in 7 ways, including webhooks and Zapier. You can even share this exported data with different team members. This allows you to unveil the key trends and performance metrics hidden in the data, such as the highest-converting marketing campaigns for your users.
Fact: ChurnIQ includes 26 dashboards that reveal immediate insights into recent business performance and 6 exportable tables that help export all the raw data.
Now, when you, as a broadcaster, get to know the exact picture, you get into an advantageous position to take focused, proactive customer engagement steps.
“As you know your customer, you're able to produce and deliver better content to your customer. This way, you can retain them and increase revenue"
- Ari Brock, Executive Director, Digital Media & Products at Tennis Channel.Moreover, you can create brand-new, customizable user groups with features like the Segment builder. 53 filters are available to quickly dissect the data and target different audiences based on your data-driven insights.
In short, ChurnIQ gives you insights into retaining subscribers proactively rather than reacting to churn. Moreover, you can integrate this tool with other marketing platforms, like MailChimp, to automate strategic responses.
Examples of ChurnIQ in action
Several success stories exist of ChurnIQ's ability to improve broadcasters' bottom lines. One example is its role in navigating successful win-back marketing campaigns for CBC.
Their team leveraged customer insights from ChurnIQ to win back lost customers. The results were incredible, and they clocked in an astonishing win-back rate of 36%!
This turned out about 2.5 times higher than the 2022 average, per industry win-back benchmarks reported by Omdia research.
So, what did CBC do?
They started with ChurnIQ's Segment builder to divide the different audiences according to customer attributes. They then leveraged specific marketing tactics for various segments to remind them what they had missed by not having premium access—a tactic that worked wonders!
Want more specific details about CBC’s win-back campaign? Read Here
How to implement ChurnIQ in your business
If you're wondering how exactly to understand customer behavior and leverage that understanding to reduce churn, here's how to do it with ChurnIQ:
- Understand the audience and create segments: Creating a data-driven strategy to reverse churn starts with segregating your audience according to their revealed behavior. ChurnIQ’s data intelligence can help you get a bird's-eye view of user patterns at different stages in the subscriber lifecycle. Next, neatly group these users into focused segments. Read More: 5 customer segments that will grow your OTT revenue
- Craft tailored marketing messages for the segments: Once you have your segments, you need to craft the messaging to engage them. Success lies in communicating personalized recommendations that speak directly to the interests of each segment, whether through advertisements or emails. This is the recipe for the ultimate loyalty program.
For example, you can create an 'active' free users segment highlighting users with a recent login. The key is to get these users to keep coming back until they reach the point where they’ll either have to pay (free trial model) or want to unlock more from your platform (freemium model).
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Integrate ChurnIQ with your marketing tools to automate campaigns: Finally, in today's age, execution speed is of utmost significance. Executing marketing activities smoothly at scale requires setting up machinery for running automated campaigns.
This is where campaign automation tools come in handy. You can combine ChurnIQ Segments to set up targeted marketing actions that align with key business goals. With this approach, you can build a solid foundation for defeating churn and pursue growth and long-term success.
Change numbers into actions to boost retention efforts
Improving customer retention efforts and minimizing the negative impact of churn requires a commitment to understanding your customers, providing excellent service, offering incentives, communicating regularly, and continuously improving. Focusing on these critical strategies can reduce churn, improve customer loyalty, and establish a strong foundation for long-term success.
ChurnIQ is an excellent way to implement churn-reduction strategies and prime your streaming business for success.
Want to know more about how this game-changing tool can propel your OTT business toward success?
We're exhibiting at the NAB Show and are excited to share tips, tricks, and best practices.
