Survey found that technology and expertise investments can improve customer retention
Research from Microsoft partner MPP Global shows that 65 per cent of media companies struggle with involuntary churn – where customers or subscribers cancel or fail to renew their subscriptions. In a recent webinar, the firm surveyed over 100 global media organisations and found that investing in technology and expertise can improve churn rates.
MPP Global also highlighted research from Parks Associates, that revealed some subscription video-on-demand services were seeing churn rates of up to 35 per cent, while according to WAN-IFRA, several newspapers were showing post-lockdown rates of up to 50 per cent. MPP Global also shared that region is a factor, with APAC being lowest and North America highest, and that the highest churn rates occur during the first 60-90 days of a customer’s subscription.
Over a third of survey respondents indicated that they lacked the resources to understand why customers were unsubscribing, and 23 per cent suggested that failed payments were to blame for increasing churn rates. MPP Global also found that many companies struggle with lost, stolen or expired cards, often as a result of customers not updating their details.
MPP Global says that “this research offers a glimpse to media organisations that when it comes to churn, there isn’t a one-size-fits-all approach to improving churn rates” and that the solution may come in the form of benchmarking internally, “investing in the technology and expertise to define the specific causes, and roll out incremental measures to optimise”.
Find out more about MPP Global’s subscriber management and billing platform on its website: https://www.mppglobal.com