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The 2017 Guide How To How to your subscribers The 2017 guide Poor customer experience is costing the pay-TV industry billions in lost revenue each year. 3 Operating in a $300 billion market with hyper competition between services - where many pay-TV and over-the-top (OTT) service IF CONTENT providers are all fighting to acquire customers, grow customers and stop customers from leaving – is exclusive content still the IS KING, differentiator? CUSTOMER Until now, content certainly has been ‘king’ service (rich content and value for money) and the rise of social media has fueled were also the reasons why subscribers the hype surrounding blockbuster shows chose to cancel (finished watching and it’s EXPERIENCE like The Grand Tour or Game of Thrones, now too expensive). However, one of the driving customer acquisition and sign-up most startling facts uncovered by our latest IS QUEEN to subscription TV services. However, what 2017 global research is that poor customer happens when their favourite shows end? experience is now as critical as content and cost when fighting churn. In fact,one in four At Paywizard we’ve researched and surveyed consumers have left a pay-TV service in over 12,000 consumers in 6 countries over the last 12 months due to a poor customer the last few years and in 2015, our research experience. showed the very reasons to sign-up for a 3 Our research also reveals that spend if they were to take a new close to half of consumers have OTT service. 84% retained a TV service they might otherwise have cancelled It’s clear, poor customer experience would cancel their pay-TV service if a provider lets them down because of positive customer is costing the industry billions in experience, while four out of revenue each year, as subscribers five would terminate a service faced with growing choice and if their provider let them down. freedom from restrictive long- The importance of this factor is term contracts for many services 24% made even more evident when are exercising their power as you consider an additional finding: consumers. In this backdrop, it’s have cancelled, within the last 12 months, due to a poor customer experience Nearly two-thirds of consumers critical for operators to deliver who have not taken a digital pay- more than just quality content at TV package in the last year say a reasonable price. To succeed they would cut back on other pay- in 2017, reputation, trust and a superior customer experience are a TV subscriptions or downgrade a % package to bring down their TV must to drive loyalty. 46 have remained loyal to their provider because of a positive customer experience 4 THERE ARE 1 BILLION PAY-TV SUBSCRIPTIONS UP FOR GRABS AROUND THE WORLD IN 2017* of new subscribers will cancel within the first 6 REASONS WHY PEOPLE LEAVE 50% months of 2017 NEW VS EXISTING SUBSCRIBERS Too expensive 39% 63% Too expensive have cancelled, within the last 12 months, due Not much to to a poor customer watch 29% 42% Not much to watch 1 in 4 experience Bad customer Bad customer consumers would leave experience 27% 35% experience a pay-TV service due to a poor customer 4 in 5 experience have retained a subscription due to It’s now critical for a positive customer operators to deliver % experience 46 the highest levels of would keep their existing TV package customer experience and spend more on a 36% new OTT service * Data from analyst firm SNL Kagan. All other figures from Research Now 5 study conducted on behalf of Paywizard November 2016. As customer experience has become a crucial factor in acquiring and retaining pay-TV subscribers, understanding and successfully DELIVERING fulfilling each step of a subscriber journey is critical for any operator. While it’s obvious for OTT-operators, where the flexibility of monthly A SUPERIOR rolling contracts leads to a high churn rate due to a ‘dip in and out’ mindset, traditional cable and satellite operators also need to stand EXPERIENCE up and take notice. ACROSS With evidence of consumers reducing spend moments across the subscriber lifecycle on their traditional cable and satellite services – FIND, JOIN, CONSUME, UPGRADE, as more subscribe to OTT services like DOWNGRADE, BILL, LEAVE, WIN BACK. EACH Netflix or Amazon Prime Video, the ability to These are the critical Decision Moments drive increased customer loyalty and defend when consumers interact with a TV service DECISION a share of wallet position is essential for and form opinions that influence satisfaction success. and loyalty, and if handled correctly by operators can lead to increasing profitability MOMENT At Paywizard, we believe there are 8 key and ARPU. 6 DISCOVER THE DECISION MOMENTS What does it mean for the consumer? I want to watch I want to be billed I want to be able to When I want to my favourite show, I want to sign up as I want the flexibility I want the flexibility accurately, with I want to be able to seamlessly view my cancel, I want to movie or sporting easily and quickly to upgrade my to downgrade my clear charges, on start my service up favourite content do it easily with event - what as possible - with services package services package time, and using a again as and when anywhere and as little hassle as service should I minimum fuss. as and when I like. as and when I like. payment method I want. through any device. possible! sign up to? that suits me. FIND JOIN CONSUME UPGRADE DOWNGRADE BILL LEAVE WINBACK We don’t want We need to the customer to We need to grow ARPU We need to We want to stop cancel but need to provide a simple by effectively We need to encourage content customers from support an active We want to actively and secure marketing securely collect How can we cost consumption downgrading with churn management market to churned subscriber on- upgrades to payment for effectively target across multiple alternative offers, programme that customers and boarding process, customers enabled each service, in and acquire the devices to help but would rather limits churn as convert as many collecting all the through an easy multiple territories, right customers? retain subscriber they downgrade much as possible. as possible back to information we to use self-service currencies and loyalty and drive than cancel their Those who do paying customers. need for service environment payment methods. upsell. subscriptions. choose to cancel delivery. with automated leave with a good provisioning. experience. And for the pay-TV operator? 6 7 Through our 18-year history of delivering The secret to our clients’ success is thinking over 100 pay-TV projects we’ve gained about each Decision Moment. For example, WINNING amazing real-world experience and insights what impact can be made on a subscriber; into consumer communications, offers whether that be what promotional offers best THE HEARTS and processes. Unlike many technology get consumers to sign-up, to programmes companies, our managed service designed to encourage subscribers to background has meant our team of industry upgrade, through to identifying potential AND MINDS experts coupled with our subscription, billing churners and what campaigns best help win & CRM platform have been instrumental back customers. OF PAY-TV in supporting the complete end-to-end customer journey for our clients. Written by our experts, that have helped pay-TV operators around the world, we’ve CUSTOMERS During this time, we’ve acquired over 10 put together some advice and a number of million subscribers for our clients, helping tips we’ve learned along the way. Applicable to deliver inbound acquisition rates of up to both traditional pay-TV operators and new to 90%, outbound campaigns driving up OTT entrants, this guide is a practical view to 25% conversions, and churn reduction on how to deliver a better experience across programmes achieving turn-around figures of each Decision Moment. up to 60%. 8 DEBBIE LEISHMAN STUART BRODIE Chief Operating Officer Head of Client Onboarding and Platform Support Passionate about customer MEET OUR service and delivering great I started my career 20 years ago results, I have 18 years’ hands-on as a contact centre manager experience of what motivates for BSKYB before moving to consumers to buy pay-TV Paywizard. Along with a focus EXPERTS services. My experience spans many sectors including: on pay-TV, I have evolved my TV Everywhere, pay-TV, OTT, Broadcast Service project and account management experience to such a Delivery, IPTV, SaaS, CRM and Subscriber Management level I believe my forte is making complex and difficult System, travel, financial services and shopping pay-TV projects digestible and easy to deliver. channels. [email protected] [email protected] 18 100+ https://uk.linkedin.com/in/debbie-leishman-4953a47 https://uk.linkedin.com/in/stuartbrodie years experience customer projects delivered CHRIS LLOYD SUSANNE ANDERSON Senior Technical Pre Sales Client Delivery Manager Consultant 10M+customers acquired $3BN+ I have over 20 years’ experience billed on behalf of customers for our clients With 23 years’ experience in delivering outstanding customer software engineering, I have service. My passion is for our been, in part, responsible for clients – working with them the core development of the everyday helping them to solve Paywizard Agile Platform as real business problems through we see it today. Driven by the needs of our clients’, the innovative use of our expertise and technology. I the insights of the business, plus a desire to improve was heavily involved in the Digital UK progamme and Some clients we’ve worked with efficiency and ARPU, the platform really is the have a significant amount of operational switchover cornerstone of all that we do.
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