Effective Churn Management as a Key to Success

All subscription models share the same goals: to improve both Customer Lifetime Value (CLTV) and Monthly Recurring Revenue (MRR). And while acquiring new customers leads to recurring revenue, the key challenges today’s OTT providers face are customer retention and churn rate management.


In OTT new customer acquisition is 7 times more expensive than retaining an existing one, making retention essential for any SVOD company to be cost efficient and scalable.


Loyal customers and long-lasting relations are vital to the ROI of a successful SVOD service and there are many variables to take into account to avoid churn.


For example, there’s a strong correlation between frequent use and low churn risk, which increases by more than 90 percent for occasional viewers as compared to daily users. Market leader Netflix excels in high-frequency usage and significantly lower churn risk among its subscribers. Other factors to consider are the number of devices used, the time the user has been subscribed, service UX and even involuntary churn due to payment processing errors.


These can all have a high impact on churn and the ability to accurately track such variables can substantially increase a video service ROI and help you stand out from a growing pack of competitors by using advanced data-driven retention and acquisition solutions.


In this Whitepaper we will discuss the following questions:


  • Why do I need to take care of churn?
  • What do i get with Jump Retention?
  • How much money do I save?
  • How it works
  • Build vs. Buy
  • Advantages of using a framework: Hamlet