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Consumption patterns are changing. Now more than ever, subscription-based companies have the opportunity to improve the consumer experience, drive customer loyalty, and leverage upsell opportunities throughout the customer lifecycle.

However, with the rapidly changing media landscape, media companies are facing new challenges as they go direct to consumers—particularly with subscription-based models.

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Meet today’s subscriber

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More options, more subscriptions.

Today’s average person has a total of 7 digital devices per household, and an average of 12 paid subscriptions—enjoying subscription services like OTT, clothing, cosmetics, food, podcasts, audiobooks, gaming & more. Consumers are quick to try new offerings and sign up for subscriptions, and subscription-based services often provide low barriers to entry to sign up for a new service.
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Subscription fatigue is real.

In the hyper-competitive market for subscription services, consumers are feeling the weight of the overwhelming amount of options. While providing high-quality content and goods remain king, subscription fatigue is on the rise and consumers are often burdened with the prices of having multiple subscriptions against the perceived value of these services.
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Subscription churn is the norm.

With most subscription services offering trial periods, consumers are “renting” subscription offerings—and are quick to cancel their subscriptions once the trial period ends, or when they no longer see value in the service. The barrier to cancellation is low, so subscription-based companies risk losing customers just as quickly as they acquire them.

The personalization opportunity

With the increase in customer churn, subscription-based companies are facing new challenges when it comes to customer retention. Personalization is a critical component of driving customer loyalty—and nowadays, customers demand it. In a recent study completed by Salesforce, 55% of consumers expect companies to use technologies to create better experiences.

And—marketers are seeing the results of a job well done when it comes to personalization. A recent Interaction Studio study showed that 98% of marketers have seen improved results from their personalization efforts. When it comes to media + entertainment specifically, another recent study recently showed that:

68%

of customers who cancel their subscriptions do so because of poor customer service—implying that when it comes to maintaining long-term relationships, ensuring there is a strong strategy in place for customer experience is critical.

42%

of users say they stay subscribed beyond the first month because they appreciate the ‘personalized or tailored’ nature of these services.

Level up the subscriber experience

The subscriber experience is no longer simply confined to the consumption of the service. Now, the subscriber experience is every interaction a customer has with the brand.

At every stage in the customer lifecycle, there exists the opportunity to engage the customer with personalized content and messaging to positively impact acquisition and lifetime value, while reducing churn.

Combined with our world-class team of marketing strategists and Salesforce experts, we help companies infuse personalization into every part of the customer lifecycle.

By leveraging our deep expertise and a cross-cloud solution—including a combination of Service Cloud™, Media Cloud™ (formerly Vlocity™), Marketing Cloud™, Interaction Studio™, and CDP in P4™—we help companies create meaningful experiences for their subscribers.

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Salesforce, Marketing Cloud, Service Cloud, Customer 360 Audiences, Media Cloud, Vlocity, and Interaction Studio are trademarks of Salesforce, Inc. and are used here with permission.

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