As customer dynamics radically shift, subscription businesses embark on a data-driven approach to designing highly personalized and customer-centric campaigns. This need for personalization has transposed the trajectories of growing businesses from business-oriented tools to data-enriched campaigns. Personalization is now synonymous with customer value creation in the subscription economy. The value you offer customers is critical to your growing revenue opportunities.
According to a McKinsey survey, those businesses that are growing rapidly are able to generate 40 percent more revenue through personalization than their slower-moving industry peers. Harnessing the full potential of analytics-driven subscriber management will be the key driver for growth. For video streaming platforms, customer-centricity offers the ability to diversify their churn management and growth strategies to attain sustainability in a particularly competitive market.
Enabling a hassle-free customer experience enhances the value you offer customers and gives you perspective about the yardsticks of your subscription business growth, including the following -
- Platform Optimization
Rising Customer Acquisition Cost (CAC) compels subscription businesses to derive revenue from the value offered to customers. As a definition, Customer Lifetime Value (CLV) is the average revenue generated from customers before they churn out. And technically, the revenue generated should be three times the money spent on acquiring a customer.
In a nutshell, CLV is a touchstone for profitability. What’s more? CLV eloquently presents some essential barometers that realistically drive a subscription business's growth.
The value your customers seek speaks volumes about their perception of your platform. This is real-time customer data. The more you know about what engages your customers, the longer and stronger your customer relationships.
Evergent’s subscriber intel allows you to segregate customers into value buckets and study their dynamic behavioral patterns. With Evergent’s offer management capabilities, you can make data-driven decisions about transposing customers from a lower feature tier to a higher one by offering innovative discount offers.
An Exemplary Product Experience
Customer Lifetime Value gives invaluable feedback to designed promotional retention offers by observing the cancel funnel of your customers. Cancel funnels are critical in nudging your retention engine when customers cancel their subscriptions. With CLV, you must realize that churn is a process, not an event. Deficiencies at any stage of the customer journey become that triggering event.
Cancel funnels are surveys that identify exactly why a customer churns out voluntarily and enable you to optimize your product experience. This mechanism also offers the ability to eventually attract customers back through features including the following
- Intelligent payment retries
- Pre-dunning configuration
- Churn deflection mechanisms
Evergent’s recurring revenue solution powers your platform with complete visibility and control over the subscriber lifecycle, reduces churn significantly, and enables global expansion with capabilities like billing automation, global currency support, and expanded content access.
Book a call with our experts to discover what goes into building a robust customer value system.