Challenge
A video content distribution company with its own streaming platform observed that a large percentage of customers subscribe only once, but then do not renew. The reason for this may have been that there was not enough information about the impending end of the subscription.
In order to increase the number of loyal customers and generate more revenue, the company decided to send automatic notifications about subscriptions.
Action
- Segmentation of contacts
Customers were divided into groups. One segment was formed by people whose subscriptions were ending in a few months.
- Preparation of personalized recommendations
The video content distributor created messages reminding people of the expiration of their subscriptions, along with recommendations of unique productions available only on the company's streaming platform.
- Automating message sending
The company created a script and set up automated messaging. SMS messages were sent to customers who had not read an email for two weeks informing them of their impending subscription expiration. Many customers only responded to the message they read on their smartphones, so the company concluded that without iPresso, it was using the wrong communication channel to this audience.
Results
- Due to automatic subscription reminder messages, more customers remembered to pay their packages for the next period. 16% fewer users cancelled their subscriptions and did not renew for future years.
- The company saved hours of time it would have spent sending notifications about expiring subscriptions.
- Customer retention increased by 21% and more users paid for subscriptions for future time periods.
- The video content distributor changed its communication channel to SMS at selected audiences, increasing click-through rates.
