Subscription lifecycle management refers to the operations of the customer journey - from initial trials, vouchers, subscription packages, billing, and customer service.. While some customers build custom tools with teams already in place to manage this as a part of their service, others outsource functions for the entire operation. When choosing vendors, you need to dig into the details of each part of the user journey and make sure your vendors have the tools available for your service to present a flawless experience. It should all be about ease of use. One small mistake in a registration flow or managing a subscription could lead to churn.
To enable a great user experience, vendors need to have flexibility alongside well-thought-out processes in the underlying systems. One prominent example of this is changing tiers from one package to another. So many subscription management suppliers still get this wrong and do not offer the required flexibility.
There is no one-size-fits-all approach when it comes to building and managing an ott subscription platform. So how do you decide which route to take? To suitably harness a more complex commercial structure, you need to continuously analyze the service to understand what levers to pull to adjust to your different models. Here, we explore 5 key strategies to consider when managing the subscription lifecycle of your ott platform.:
Content is king, but there is space in the market for a wide range of different types of content. The type of content you provide will influence the best subscription model for your customers. Begin by asking yourself a few simple questions: What would a prospective customer pay for a particular service, compared to the wide range of services offered by global companies such as Netflix et al. ? Should we bundle our content differently, e.g. all-you-can-eat packages vs multiple tiers? Which features and/or content could potentially differentiate pricing?
What features should differentiate the packages from each other? There are two aspects to this: end-user value perception and internal cost drivers. End users tend to value convenience and flexibility. Comfort is by far the most valuable in any business. Humans always strive to make life as easy as possible; this is how we’re programmed.
For example, the number of simultaneous users has successfully been used by Netflix to differentiate its packages.
The top-tier services have set the bar high for the rest out there, but do you need to do what they do? Can you offer an initial package with minor features that drive customers to a more limited service at a lower price, i.e. attracting users and upselling features and functions? Often some of the more advanced features are nice to have but don’t impact those initial subscribers signing up.
Many video service providers have grand plans for their commercial setup and request complex models, so complex that it quickly gets confusing for end-users and the internal team to create easy to understand marketing messaging. Please don’t get blindsided by all the options. Just because something is technically doable it doesn’t mean you should do it. Keeping customer communication and subscriber options simple is key to success.
Look at the current most successful global service, Netflix, which delivers very little complexity and plenty of clarity around what users get. The benefit of this model is that you also have a clear upselling path. They include everything in each tier and then upsell you as you use the service more and more – such as the number of screens or devices you can at the same time.
It is all about the content you have and the type of audience you are attracting. Does your catalog appeal to a broader audience in a family scenario? Then streaming concurrently is probably an interesting upsell you can use. If you have a niche service with stunning imagery, then video quality might be the choice instead.
Keep it simple to start with—one or two tiers with different layers of access.
Creating value for your customers can be delicate in terms of content and functionality. To understand what distinct value to provide for your audience, conduct market research and create a value matrix of various content types and features.
The first step is to identify your core audience and ask them to outline various areas of your offering in the matrix below. The criteria that end up in Differentiable Features (upper right box) are the factors/attributes for which your customers would have a high willingness to pay.
The below matrix will enable you to easily figure out a pricing strategy. We have shared an example for your reference. When you are mapping out a scenario for this exercise, be explicit and conscious about what content is valuable for you so that users can help you make the distinction. For instance, if you own the national basketball rights in your country, mention it to your users.
Number of screens you can watch at the same time
Number of devices available for Offline content
Streaming hours per month
Are you targeting the right geographical region with your service? Are you looking to attract a more global audience or more regionally focused? What is the willingness to pay for your specific catalog, and the features you provide? There may be a huge appetite if your content is unique or extremely regionally relevant. Depending on where your audience is located, you may need to ensure that there are options to change language settings.
No matter which strategy you choose for managing customers’ subscription lifecycle, Accedo One can help you build and grow an impactful video service. You can get your video service to market fast and expand your service by integrating new features based on what your customers want and need.
To learn more about our powerful SaaS video platform, visit https://www.accedo.tv/one/