Customer Churn (A Classic Example – OTT platforms)
Customer Churn also known as customer attrition is the rate at which the customers stop doing business with the company. In simple terms, it is a percentage of customers who stop buying a company’s products or services over a certain period of time.
Understanding customer churn is crucial for any business because it can have a significant impact on revenue and profitability.
One-way companies can measure customer churn is by looking at the retention rate which is the percentage of customers that continue to do business with the company over a period of time.
A classic use of customer churn is in OTT platforms.
OTT customer churn rate is a measure of the number of subscribers leaving OTT service in a particular billing period compared to the total number of subscribers at the beginning of that period. Subscription churn rate indicates whether brand will successfully advance or slowly collapse. Churn management is essential in the OTT battle – constant optimization of content and services is necessary for customer retention.
The OTT industry can analyze data like poor user experience, unappealing content library and high-cost subscription plans by identifying patterns in data OTT platforms can find high-risk customers who are likely to cancel their service. This information can be used to target those customers with personalized retention plans and incentives.
- A powerful recommendation engine
- Split testing
- Well-researched user preferences
- Push notifications
- Personalized email recommendations
OTT platforms believe in creating the best user experience that customers don’t hesitate to pay for. That’s the only way to win OTT steaming battle – allowing subscribers to keep watching what they want without interruptions. This will result in improved customer retention and increase revenue. As we can see in the business analytics sector, it is important to understand and prevent customer churn.
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