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Blogs
Alisson Moore
Senior Vertical Marketing Manager – Global Verticals
The pandemic propelled an already dynamic media & entertainment (M&E) industry to new heights. Avaya’s new research report shows that pre-COVID, the average U.S. consumer had 12 paid for M&E subscriptions for services such as music, video, podcasts, and games. Since then, almost 25% of customers have added at least one new paid for video streaming service such as Netflix, Hulu, or HBO Max.
So many offers, combined with the cost of adding new services and the time it takes for users to become familiar with those services, has made the competitive landscape razor sharp. M&E companies can get ahead by unlocking the goldmine of data that is generated when customers use their services. An effective data strategy enables understanding of customer needs and the targeted development of new products and services. It also allows companies to personalize offers to customers by matching interests and social demographics with other data factors, building loyalty and simultaneously revenue.
Our new research reveals key insights about users’ preferences. Here's what M&E companies need to consider…
The mass shift to streaming has created a rich and continuous flow of behavioral data that companies can use to make insight-driven improvements across different facets of operations. With the right tools, companies can develop a solid understanding of how customers interact with their services in detail — building stronger, more direct relationships with them. Netflix is a clear leader in this area. Over 75% of the platform’s viewer activity is reportedly the result of personalized recommendations, which has helped drive an incredible retention rate of 93%. The company does a great job of showcasing top trending programs based on data insights. Production choices are also improved through a better understanding of what content will engage and capture certain audiences.
Streaming is all about attracting different customers with varying interests (did you know Netflix produced 10 different versions of the trailer for House of Cards to promote it to different target groups?). Digital giants like Netflix, Spotify, and TikTok excel in this area, recommending personalized content that keeps customers engaged and coming back. Offers like monetary discounts, free video streaming, and additional mobile data are other ways that M&E companies can attract and maintain customers — making it easier to cross-sell during phone calls and create targeted marketing communications. These objectives require accessing databases and using predictive analytics to profile customers and pair them with the most relevant content or match them to the most relevant offer.
AI can take predictive capabilities one step further with features like mood-matched recommendations, which are not only right for a particular customer but right for that person at the exact point it’s offered. BuzzFeed is one such company developing around this. The brand announced in 2019 that it was experimenting with a mood-based recommendation platform, called MoodFeed, to engage with its audience in an exciting, non-traditional way.
How far can predictive analytics go? Down the road, we will very well see intuitive and responsive technologies that can anticipate customers’ needs and desires using AI-powered analysis. For example, as opposed to saying, “Hey Google, play [song name],” the voice assistant will know us well enough to know what to play and when.
Personalization is key to a strong customer relationship, which requires investment in data collection and storage as well as analytics and AI. This investment creates a better understanding of individual customer personas and customers’ journeys across all channels. For M&E companies, this creates opportunities to:
Digitalization is a double-edged sword. As companies create more value, customers have greater incentive to switch providers if they find a better offer. Using a combination of AI and data sources, M&E companies can maintain and grow their customer base while generating new revenues and protecting long-term earnings.
Learn more about the key elements M&E companies should consider to digitally evolve through the 2020s with Avaya’s latest research. View the full report, Four Recent Trends Shaping the Media & Entertainment Industry.