Today’s consumers have an overwhelming stream of media and entertainment options. The new acquisition is driven by original content but to retain consumers you need to really know them and their needs are more diverse than ever. Gen Z and Millennials needs vary greatly from Baby Boomers—so it’s critical to understand the nuances—including their interests, price sensitivity, ad tolerance, preferred media, and more. Subscription fatigue, sub-optimal experiences, and impacted productions delaying fresh content are driving subscriber churn. According to Deloitte, the U.S. Q1 churn rate among Over-the-Top (OTT) video streaming services, like Hulu and Netflix, rose from 35 percent in 2019 to 41 percent in 2020. Churn erodes ROI and customer value, making customer retention essential. In addition, providers need to optimize advertising spend and adapt to shifting distribution models.
Media Loyalty Programs Boost Customer Engagement and More
There are many reasons to consider launching or upgrading a media loyalty program. Here are some of the key benefits you can expect.
Examples of Industry-leading Media Loyalty Programs
Deloitte reports that there are more than 200 subscription video-on-demand platforms in the U.S., which explains why many are turning to media loyalty programs to stand out from the pack. Take Tatatu. This innovative newcomer provides rewards to viewers and launched an ecommerce store where viewers can redeem rewards for products. Founded by Hollywood producer, Andrea Iervolino, the
company’s rewards program “connects users and content providers in a way that not only rewards people for consuming entertainment, but also for producing it,” says Iervolino. This means looking more holistically at the customer to translate desired behaviors, such as viewing advertisements or browsing in-store, into tangible rewards.
The presence of brands across multiple platforms is enabling companies to offer streamlined, satisfying experiences that engage consumers. In the case of Marvel, rewards extend to gaining special access to events, comic books, and more. Rewarding activity and actions open up an opportunity for brands to encourage consistent engagement across mobile, desktop, gaming devices and allow them to connect to in-person experiences.
Amazon tops the list for retention and incentivizing customers is part of their basic ideology. Amazon Prime offers subscribers everything from free shipping, exclusive deals, and family savings to free video streaming, unlimited access to music, free games and loot, and exclusive access to book and magazine reads.
Annex Cloud Is Here to Help
Customer engagement is a critical part of building media loyalty. Annex Cloud’s Loyalty Experience Platform™ boasts the widest range of engagement options, giving media organizations maximum flexibility in how they keep consumers interacting and consuming content. Combining best-in-class loyalty management with powerful engagement and communication modules, the platform is modular, so you buy just what you need. Learn more about our media loyalty programs.