Preventing the Slip of Easy Money

There was something that initially convinced your customers to buy and believe in your brand.

But that value has eroded now and they may only be buying out of Habit. 

The next step is determining who is thinking about dropping, and what can be done to retain them, before the Hostage breaks free.

$81 million at stake

Case Study: Hostages within Streaming Providers

Each streamer has a portion of their subscribers that consider getting out.

Netflix has 12% of their users on the cusp of canceling, which compares to 15% for Disney+, 13% for Paramount+, and 18% for Prime Video.

There's a Churn Risk that could be calculated here as well, which for Netflix is at 20% (Taking the 12% hostages divided by the 59% of total customers). That could be $81 million dollars of revenue at risk.

Netflix is better positioned here against fellow large streamers.

Showing the strength of their poll position, Netflix here has far more solid Believers than possible Hostages looking to leave. That threat is much larger for the competition. They have a larger share of subscribers that would look to bail for better content, price, or experience.

Retaining These Hostages

As previously explored in posts on Customer Equity and Affinity/Behavior, these Habituals/Hostages may need a simple remedy to stay. In this case, some of these hostages could say they:

• want the newest movies and shows faster.
• need access to premium network shows.
• think streaming services should replace cable TV entirely.
• want one unified streaming platform service.

Focus of Attention

Fortunately, for Netlfix, that $81 million of potential risk is the easiest population to reach as current customers. Answering their concerns to revert value back to the brand can be much more affordable than converting new customers. Quicker access to premium content would satisfy the small portion of Netflix subscribers with one eye squinted elsewhere, which would bolster their behemoth status in the streaming industry today.

Now, paired with $20 million in potential revenue to add from high affinity near-customers, resources can be appropriately allocated to maximize equity within the customer base.

Interested in this analysis for your customer segments too?

McQueen Analytics can help quantify these customers for your brand too.