When Invesp Consulting documented the financial benefits of customer retention management and customer lifetime value, yet another research established the importance of building loyalty. Despite such in-depth studies, a bulk of broadcasting brands focus only on acquisition. In an age where competition is intense, switching costs are next to zero and customer expectations are really high, it is tough to retain your customers in the TV news industry.
This is important if your broadcasting media company or TV news channel wants to move past just surviving and focus on thriving. Keeping the interests of digitally inclined TV viewers in mind is another tough task. Yet it is worth it, because customers seek easy, seamless and unique viewing experiences and service delivery at every touchpoint. If your TV media company does not deliver, customers will definitely jump ship.
- The Acquisition Versus Retention Dbate
Given the massive rate of customer churn, marketers continue to pour money into the acquisition. As per recent Signal research, 60 percent of CMOs are unhappy with customer retention management practices yet 75 percent name customer acquisition as their priority. TV news channels and media companies need to understand that the key to sustained viewership ratings is to keep users coming back for more. In research by Forbes and Sailthru, it was found global media brands increased their acquisition budgets by 79 percent as against 42 percent for retention. Companies need to realise that focusing on acquisition is not the way out, when it comes to generating revenue and boosting conversions.
- Tapping Customer Lifetime Value
Once a new viewer is acquired, media brands need to understand acquisition is not enough. Speed, relevancy and context play a vital role in media communications. Inconsistent interactions offer less value and marketers now need to focus on sustaining viewership by building and utilising user profiles and data-driven approaches. Looking beyond acquisition and strategising how to communicate to foster further discovery and engagement is the key to the TV news industry and broadcasting channels being able to sustain ongoing dialogue and foster long-lasting relationships.
- A Question of Cost
Additionally, TV news companies and broadcasters will find it is more expensive to convert prospects into customers than it is to cement ties with existing viewers and subscribers. For 5 times less the cost, media marketing professionals can not only identify top customers but also strategise to offer more value to the customer and power the brand.
- Staving off Revenue Risk
Build on brand loyalty is not just about the quality of programming or the star power of your TV news anchors. What matters most to customers and viewers is whether they find what they are indeed looking for. For example, 82 percent of customers worldwide will abandon a brand post an adverse experience. Media brands now need to increase the value of existing customers, with companies facing up to 50 percent more revenue risk due to customer churn. Retaining customers and lowering churn has never been more critical, especially with the advancement of the TV news industry, the emergence of OTT and cable channels and the explosion of choice, when it comes to news channels and media houses.
- The Need for Effective Promotion
Customer retention management in the TV news industries is also about effective promotional strategies. While TV news journalists work around the clock to create the perfect script and newscast, putting together the news services is more than just the news anchor’s, reporter’s or producer’s job. Without the most effective promotional channels and marketing communications, even top TV newscasts will fall short of reaching potential audiences. Today, news and information is available in so many ways. Topical promotion is essential for TV stations to try and grow their audience. Telling viewers about stories on upcoming broadcasts or getting celebs to endorse a channel will certainly help.
Back-teasing or rewinding the news stories can also help to build your media brand.
- Cross Promotion is Essential
Another key element of effective customer retention management for TV news industries is cross promotion. Telling people when they can see the next newscast is a way to build a strong audience and keep viewers coming back for more. People need to be given incentives as to why they should keep watching your channel when the next broadcast airs. Promote your web and social media platforms, and you’ll be able to sustain viewer attention. Retention management is about creating a circle that keeps viewers in the loop with feedback to sustain it.
- Proof of Performance Advertising Counts
Social proof is something all news channels look forward to. A proof of performance advertisement is a quick way to cement news brands with viewers and tells your consumers what you have done for them. For example, exclusive coverage no other TV news channel got could be a way to promote your media brand in a saturated and hyper competitive marketplace. As even heavy news viewers watch only a handful of newscasts, it is vital for your media brand to raise awareness of all the wonderful stories produced. Delivering a successful newscast on TV requires more than just excellent content or a will to serve the people. Marketing is equally crucial, when it comes to customer retention management.
- Valuing Long Term Customers
Switching costs are low, so media brands need to offer deals and discounts that can interest viewers. For example, cable companies could throw in a few free channels to sweeten the deal. Asking for the customer loyalty team to work at their optimal best is the key to retention. In the television industry, switching is no longer an issue for consumers. With streaming competitors on the rise, it is difficult to get viewers and retain them.
Accenture conducted research which revealed 51 per cent of consumers switched service providers when experiencing an adverse outcome in continuing with the brand. Taking swift action is as important as heeding what customers have to say. Besides formulating the retention strategy, you need to test, measure and refine these as well. Your marketing spend needs to budget for customer loyalty and grabbing share of wallet as well as mind share. This is because brand ambassadors can advocate and refer on your behalf and grow your viewership ratings.