Optimizing Your SVOD Business – Strategies for Acquiring, Engaging, and Retaining Subscribers
Acquiring Subscribers More Efficiently
To build a sustainable SVOD business, it’s essential to start with smart, cost-effective subscriber acquisition. This involves targeting and converting high-value subscribers who are more likely to remain loyal and engaged.
Conduct Lookalike Campaigns: Utilize lookalike campaigns on search engines and social media platforms to target prospects similar to your most valuable subscribers. Identify these subscribers by assessing their lifetime value and satisfaction with your service.
Promote Your Most Enticing Content: Analyze what content new subscribers are watching first and use this information to guide your marketing efforts. Titles that draw in large audiences are perfect for attracting new subscribers, and these insights can also inform content licensing and production decisions.
Drive Up Conversion Rates: Leverage analytics to understand the effectiveness of your subscriber acquisition channels. By tracking conversion rates by device and referral source, you can direct your marketing budget to the channels that provide the highest returns.
Make Signup Simple: Simplify the signup process to reduce friction for new subscribers. This includes minimizing the number of steps in the checkout process and supporting multiple payment methods and currencies to accommodate a global audience.
Engaging Subscribers to Build Loyalty
Once you’ve successfully acquired new subscribers, the next challenge is turning them into loyal fans. This requires delivering an engaging experience that keeps subscribers coming back for more.
Showcase Your Content: Help subscribers discover new content by creating curated playlists, scrollable carousels, and smartly tagged videos. Use attention metrics to promote content known to increase subscriber lifetime value.
Stagger Content Releases: Combat the binge-and-burn cycle by spacing out content releases. This strategy encourages subscribers to return regularly, giving new shows time to build an audience and gain momentum.
Deliver a Quality Experience: Technical issues like rebuffering and freezing can drive subscribers away. Make sure your OTT streaming platform delivers pristine video and audio files to all platforms, every time. Monitor quality of experience (QoE) metrics to stay on top of performance issues and ensure a smooth, high-quality streaming experience.
Leverage Live Events: Consider adding live events, such as sports or entertainment, to your content offerings. Live events create appointment viewing opportunities and give subscribers a reason to stick around for the next big event.
Add a Linear Channel: Complement your VOD offering with a linear channel to appeal to subscribers with different viewing styles and preferences. This can help you attract and retain subscribers who prefer the traditional “lean-back” experience of live TV.
Retaining Subscribers by Combatting Churn
Subscriber churn is a significant challenge for any SVOD business. A proactive strategy to combat churn is critical to maintaining and growing your subscriber base. The goal is to stop churn before it starts by keeping subscribers engaged and satisfied.
Stop Churn Before It Starts
Use viewing activity data to predict which subscribers are at risk of leaving. When engagement levels drop dangerously low, take preemptive steps to re-engage these subscribers and keep them on board. Here are some examples:
1. Personalized Recommendations
If a subscriber’s viewing activity has dropped, use AI to analyze their past preferences and recommend new content that aligns with their interests. For instance, if someone used to watch a lot of crime dramas but hasn’t logged in recently, send them a personalized email or notification with a list of new or trending crime dramas they might enjoy.
2. Exclusive Content Offers
Identify subscribers who have significantly reduced their viewing time and offer them access to exclusive content or early access to upcoming releases. This can be a strong incentive to re-engage them. For example, offering a sneak peek of a highly anticipated series or a behind-the-scenes look at a popular show they’ve watched in the past.
3. In-App Notifications
When a subscriber’s engagement drops, trigger in-app notifications highlighting new episodes of shows they’ve previously watched or introducing new features of the platform they might not be aware of. For example, “New episodes of Your Favorite Show are now streaming!” or “Discover our new ‘Watch Party’ feature to enjoy content with friends online!”
4. Targeted Discounts or Promotions
Offer a limited-time discount or a free month of service to subscribers who are at risk of churning. This can be positioned as a reward for loyalty or an incentive to explore more content. For example, “We’ve missed you! Enjoy a free month on us to catch up on the latest shows.”
5. Engagement Surveys
Send a short survey to disengaged users asking what type of content they would like to see more of or what improvements could enhance their viewing experience. Use the feedback to tailor future recommendations and show the user that their input directly influences the service.
6. Content Highlights Email
For subscribers who haven’t logged in for a while, send an email highlighting the best content they’ve missed, tailored to their viewing history. For instance, “You haven’t watched in a while, here’s what’s new: [List of shows/movies].”
7. Gamification of Viewing Experience
Introduce features like watch streaks or viewing challenges to encourage regular engagement. For example, “Watch three new episodes this week to unlock a special reward!”
Personalize Re-engagement
Tailor your marketing messages based on each subscriber’s viewing history. Identify new releases, related titles, or hidden gems that will entice subscribers to re-engage with your platform. Differentiate your approach between idle and inactive users to maximize effectiveness.
Automate Outreach
Automate your re-engagement campaigns using integrations between your streaming platform and marketing technology systems. Email and SMS messages are particularly effective for reaching at-risk subscribers who may not be actively using your app or visiting your site.
Winning Back Lost Subscribers
Even with a strong retention strategy, some churn is inevitable. However, you can win back lost subscribers and add valuable points to your monthly growth by following a structured approach.
Understand Why Subscribers Leave: Determine whether subscribers are leaving due to involuntary reasons, such as expired credit cards, or voluntary reasons like pricing, performance, or content dissatisfaction. This insight will inform your win-back strategy.
Automate Win-Back Campaigns: Increase the efficiency and timeliness of your win-back efforts by automating email and SMS campaigns. Regular, automated outreach can help re-engage lost subscribers before they move on to competing services.
Segment Lost Subscribers: Group lost subscribers into meaningful segments based on churn reasons, timing, content engagement, and satisfaction levels before they left. This segmentation allows you to create more targeted and effective win-back campaigns.
Streamline Re-Subscription: Keep subscriber accounts and payment information active to make it as easy as possible for lost subscribers to return. A frictionless re-subscription process can significantly increase the likelihood of winning them back.
Create Targeted Win-Back Campaigns: Tailor your messaging and offers to specific segments of lost subscribers. For example, promote annual subscriptions to frequent churners or highlight new content to subscribers who were highly engaged before leaving.
Achieving Long-Term SVOD Success
Building a successful SVOD business requires optimizing every phase of the audience lifecycle. By focusing on efficient acquisition, deepening engagement, reducing churn, and winning back lost subscribers, you can drive growth and maximize subscriber lifetime value.
Leverage Technology: Invest in broadcast-grade streaming platforms that offer advanced insights, flexible subscription options, and a personalized subscriber experience. These tools are essential for delivering the high-quality, tailored experiences that today’s subscribers expect.
Use Unified Analytics: Analyze data across the subscriber lifecycle to identify opportunities for improvement. Regularly compare your performance metrics against industry benchmarks to stay competitive and continually refine your strategies.
Adopt an End-to-End Strategy: Integrate your efforts across acquisition, engagement, retention, and win-back to create a cohesive, end-to-end strategy that drives long-term growth and success in the competitive SVOD landscape.
