MIPTV 2017 Preview: Chris Welsh, VP, TV & Sport, MPP Global

Half of the people who churn didn’t actually mean to. Does that make you feel better?

I’ll explain that point in a minute, but here’s how I know: MPP Global works with industry leaders to launch sustainable OTT services. It’s critical to focus on what OTT operators care most about:

Conversion: Identifying potential prospects, then using smart tools, promotions and incentives to transform them into customers.

Retention: Retention and recovery tools look at both voluntary and involuntary churn, and helps OTTs prevent both.

Most brands focus on conversion, which is understandable. However, conversion means little if people don’t stick around, enjoy your service and proselytize on your behalf. It’s better to focus on retention first—it may be surprising to learn that up to 50 percent of turnover is completely unintentional.

This is because most involuntary churn is due to payment failure, or lapses of information that just happen—like people moving, or updated card details. There are services available that should be prioritized, because they add significant value to customer retention.

In some cases, predictive churn algorithms are able to identify the customers most likely to head for the exit, based on behavioral data and on details like the aforementioned. 90 percent rates can be achieved, and implementation will reduce involuntary churn. There are features designed to create multiple retrials for subscription processing and also periods when banks are more likely to approve transactions.

Tackling and addressing involuntary cancellation was only half the battle. In the case of voluntary churn, behavioral algorithms are able to study subscribers and identify people who are more likely to unsubscribe in a defined time period—say, within the next three months. It then produces messaging and troubleshooting approaches targeted specifically to them.

Mitigating the customers who leave voluntarily is more specific, and has a direct relation to service. All the platforms in the world won’t reduce the need of really digging into the data and finding out why people churn. It may be because they called tech support one time too many without resolving their problem, or because they liked a few things you offered, but not everything.

For this, maintaining a close relationship with your customers is recommended, as well as anyone evaluating your consumer touchpoints to get more insight on why people might drop at a given moment. It’s also critical to make it easy to get help, and build a feedback loop into your customer service process. After you get your retention strategy in place, you’ll need to focus on conversion. Look at how prospects interact with the content, and tailor offers to them based on their most critical points of interest.

Over time, small efforts like these add up to big savings and a very sustainable future, one where many different opportunities become possible.

Your results will yield a richer and more loyal subscriber base. I can’t emphasise enough to focus on retention first. Involuntary churn can be easy with the right tools; voluntary churn less so, and many businesses tend to push this area aside. Least surprisingly, what this all comes down to is being willing to put your customers first at every opportunity.