According to new research from UK-based Paywizard, consumers view Netflix, Amazon, and Hulu very differently from other SVOD services. In this interview with Paywizard’s CMO we discuss these differences.
Bhavesh Vaghela, Paywizard’s Chief Marketing Officer, told me that the company ran a survey of 6000 SVOD users in 6 countries (1000 per country.) The survey showed that consumers have a more casual relationship with smaller SVOD services. They are very comfortable subscribing for a short time, watching the content that interests them, and then cancelling the service. This dip-in-dip-out behavior means many SVOD providers need to manage their relationship with their customers very differently from the bigger providers.
Since frequent cancellations are a fact of life, Mr. Vaghela says SVOD providers still need to think of a subscriber that has cancelled as a customer. They should use what they learned about the customer’s likes and dislikes while they were a subscriber to try and entice them to come back. For example, letting them know when new episodes of show they watched are available could be a powerful incentive for them to resubscribe.
He also said that the cancellation process needs to be as simple as possible, or customers may not want to come back to you. This, he said, came through very strongly in the focus groups.
Other features that consumers think highly of include chat assistance during the sign-up process, and help with how to use the service. Surprisingly they are not very impressed with recommendations made by their SVOD provider. This is an area that is receiving a lot of focus from operators, so perhaps these recommendations will improve in the near future.
Chapter 1: Consumers view tier 1 and 2 SVOD services differently (0:20)
Chapter 2: Dip-in-dip-out behavior (1:40)
Chapter 3: What SVOD providers should do about it (2:50)
Chapter 4: Marketing 24×7 (4:00)
Chapter 5: The cancellation process (4:35)
Chapter 6: Using human interaction to improve signups and usage (5:50)