11 Nov Happy Customer, Happy Company: The Value of Customer Retention
There is a 90% chance that users who had a bad first experience will never return to watch another video (according to NPAW’s data). So knowing your customers and ensuring quality of experience (QoE) matters.
John Mackey, CEO of Whole Foods once said, “For us, our most important stakeholder is not our stockholders, it is our customers. We’re in business to serve the needs and desires of our core customer base.” Customers are the life and soul of any business, and understanding their needs, providing them with excellent experiences, and having an agile customer support team, works to mutual gain. Get insight on your customers’ behavior and experience to increase retention and revenue per user.
Now consider the impact of that financially. Writing in a piece for the Harvard Business Review, Amy Gallo discusses the value in keeping customers following an interview with Jill Avery, Senior Lecturer at Harvard Business School. Her major point? Keep customer churn rates low.
Churn is customer turnover in a given period, reflected as a percentage. Ideally, this number should be kept low, because a lost customer is not a lucrative source of revenue. Worse still, procuring new customers is not a cheap process. Quoting the article, “acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.” Losing revenue while facing the daunting costs of client acquisition is not a recipe for success, to paraphrase an old expression the existing customer “bucket” fills the new customer existing “other”.
In the streaming media industry, with an evolving commercial environment and shrinking budgets, reducing churn and cultivating meaningful customer relationships are essential to achieve growth with minor impact on your bottom line. Either if you have a SVOD or AVOD models, hybrid, or live, understand how your service is performing will help you build stronger user engagement. Gain visibility into how your video reached the end user to provide superior QoE, and garner a reputation for quality and dependability.
Cutting-edge business intelligence and analytics platforms like YOUBORA by NPAW are the best way to gain a transparent understanding of your video deliver “supply chain” in order to take action, resolve delivery disturbances and retain happy customers.
Remember, your business is only as successful as its services are demanded. By tackling QoE and better understanding your customer base, your service is well on its way to success.
Just another thing to think about from us here at NPAW.