How Propensity Modeling & Customer Segmentation Can Help Media and Entertainment Companies Predict their Customer’s Next Move

Jul 1, 2020

data science

Want to predict your customer’s next move? Or do you wish to analyze how your customers would respond to an offer? Answers to these questions and how you would go about achieving them play a crucial role in driving success in today’s complex media and entertainment industry. It is also one of the reasons why media and entertainment companies are now embarking on an obsessive quest to find answers to such questions by investing heavily in data-driven campaigns and big-budget strategies—yet achieving measurable results seems to be a moving target in the media and entertainment industry. 

Notably, technological advancements and digital innovations have played a pivotal role in drastically transforming the media and entertainment landscape. Though the transition started more than two decades ago, the changes to media and entertainment companies during this time have been dramatic, resulting in high churn rates and a bigger group of dissatisfied customers. Customer segmentation and propensity modeling have proven to help media and entertainment companies tackle this challenge.

Request a free proposal to learn how we can help you develop an insight-driven organization with the help of propensity modeling and customer segmentation analytics.

At Quantzig, we leverage advanced customer segmentation analytics solutions to help media and entertainment companies to:

  • Enhance CX and drive better campaign outcomes
  • Leverage data from disparate sources and apply customer behavior analytics to better understand consumers
  • Apply social listening to understand the impact of customer sentiments

Let’s look at three propensity models media and entertainment companies can leverage to achieve their revenue goals:

The propensity to buy model – How likely are your customers/visitors to make a purchase or turn into loyal customers?

Insights such as these can help media and entertainment companies to identify customers with lower propensity scores and target them through personalized offers.

The propensity to churn model – Who are your ‘at-risk’ customers?

Identification of at-risk customer groups with high propensity scores can help media and entertainment companies reduce churn through win-back campaigns. By adopting a churn driven approach to propensity modeling, media companies can also go a step ahead and assign account concierges to help customers reconnect with the company’s core value proposition.

The propensity to unsubscribe model – How likely are customers to unsubscribe from your services?

Insights into customer groups that are more likely to unsubscribe from services can help media and entertainment companies analyze their behavior and develop special offers and discounts to reinforce the value of remaining a subscriber. This propensity modeling approach also helps businesses to take the right action at the right time without impacting user experience.

Insights enable media and entertainment companies to understand customer behavior, communicate more effectively, and reduce churn. Contact us to learn how we can help you.

Case in Point: Propensity Modeling Leads to Accurate Customer Segmentation and Boosts Sales for a Media Services Provider

To drive sales volumes and enhance brand visibility, the Asian arm of a global media and entertainment company decided to target customers based on their behavior and content consumption patterns. Prior attempts to do so through promotional campaigns had failed to deliver the desired results. To help the client tackle these challenges, Quantzig’s propensity modeling experts developed a robust model that helped them create and implement new strategies to drive ROI through targeted campaigns and retain loyal customers year-over-year.

Based on the outcome of this engagement, it was evident that Quantzig’s approach empowered the client to target customer segments based on their needs and interests. Apart from double-digit growth in MROI the client also witnessed a stellar response to the targeted promotional offers. Propensity modeling also enabled them to achieve a remarkable growth i.e., > 200 percent increase in subscription rate compared to the previous year. As a result, the devised propensity model continues to be used to launch promotional offers for their subscription platforms as well as the other services offered by them.

Request a free demo to learn more about propensity modeling and its use cases in the media and entertainment industry.

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