We can keep quoting the video streaming service trends ‘till we’re blue in the virtual face.
Statistics such as…
More than 85% of U.S. households use video streaming services.
Households tuned into streaming services show a higher utilization, with nearly 5 different services, on average.
Both broadcast and cable viewing levels continue to drop nearly 10% year-over-year, per Nielsen reports.
Hardly surprising. As is this next, critically important question directed to the providers of these more entrenched services: Now that you have the audience, what are you doing to keep them engaged?
For the providers of platforms delivering everything from live global sporting event streaming to original television and movie content as well as telecom service providers in every corner of the world, the answer to that question must come from within. It’s right there within the customer data.
How to Approach Customer Value Management
An article published by EY last month tries to tackle this query by exploring a customer value management (CVM) approach that could help any streaming service -turning the insights of its subscribers into better business performance.
As defined by Forbes, customer value management is a data-driven system to have more consistent and impactful value conversations with prospects and customers by communicating, quantifying, building and realizing that value at every stage of the revenue cycle.
Customer value management, according to EY, helps companies accelerate growth, reduce customer churn, and improve profitability in the short- and mid-term through three solutions:
- More efficient subscriber acquisition
- Expanded engagement from existing customers
- Lower churn through proactive customer retention
The competitive nature of the video streaming market, according to EY, has shifted from an acquisition-at-any-cost race to a user engagement and retention-driven battle.
“Customer centricity can help streaming players achieve profitability by shifting focus from acquisition to maximizing customer lifetime value,” said John Harrison, Sector Leader for EY Americas Media & Entertainment, in the piece.
Customer Lifetime Value through Personalization
While we’re on the subject of customer centricity, here’s another term to throw your way: customer lifetime value (CLV), or the total income a business can expect from a customer over the entire period of the relationship. The most successful streaming providers must look beyond profitability, ultimately shaping sustainable growth. Focus on improving the customer's lifetime value to offer personalized service goes a long way while retaining your customers.
The more nimble your customer value management approach, the better equipped you can be to identify high-value customer segments and capitalize on emerging trends and consumer habits.
The Ultimate Value of Agility and Flexibility
Customer value management is a long-term effort involving platform optimization and churn reduction, propelling retention and customer trust. A simplified user experience is all it takes to improve retention, strengthen customer loyalty, and build a robust and highly scalable global streaming business.
The focused approach of Evergent Monetization Platform (EMP) enables you to build a transformational business model for your organization. With Evergent, the following capabilities and more are at your fingertips:
- Enhanced revenue management with centralized billing operations
- Minimized churn rates with automated customer communication and promotional strategies
- Optimized payment platforms powered by global payment gateways
- Frictionless subscriber journey management right from subscriber onboarding
- Rapid business scalability and improved subscriber retention
Leverage EMP’s tailor-made monetization strategies to build a highly scalable streaming business. Book a call with our team of experts to learn more.
References -
https://www.ey.com/en_us/alliances/maximizing-value-for-video-streaming
https://www.kantar.com/inspiration/technology/us-video-streaming-market-growth-stalls
https://www.nielsen.com/insights/2022/streaming-claims-largest-piece-of-tv-viewing-pie-in-july/
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