Accelerating Success Through Data Insights
People are now consuming more digital media and subscribing to more channels than ever before. This increase is being driven by consumer expectations to have everything they need, available when they want it. This expectation has been driven across the market by large organizations, such as Netflix or Amazon Prime and the services they can provide. Customers want their purchasing process automated, with services such as automated re-ordering.
Many organizations are finding that simply producing content, product or services isn’t enough, driving the adoption of new strategies focussed on customer data. In this blog, we will discuss three data trends which are driving the media and subscription industry; hyper-customization, artificial intelligence, and data privacy and security.
Digital transformation and the growth in data has put customer satisfaction at the heart of many media and subscription organizations. As a result, customer expectations have significantly increased, and new products and services are emerging all the time. Customers expect an immediate service that fits around their lifestyle and organizations must respond with a hyper-personalized experience.
Personalization helps businesses to gain insights into customers preferences and intent through data, making it possible to offer customers tailored experiences. This makes them feel more valued, increasing brand loyalty and decreasing the risk of subscription cancellation. Hyper-customization uses real-time data to improve customer experience, businesses use this strategy to deliver more accurate content, customized products and tailor-made product recommendations and services.
However, one major challenge media and subscription organizations are facing is data silos. This industry handles a vast amount of data, collected and managed in different locations. This makes it extremely difficult to access and view customer data in its entirety as it is stored in silo. Therefore, in order to deliver a hyper-customized experience for customers, organizations need a single source of data truth.
2. Artificial Intelligence
Keeping up with today’s audiences and heightened competition makes it crucial for organizations to completely understand their customer demands. Artificial intelligence tools such as facial detection and recognition, search and recommendation algorithms, and e-payments are being invested in. This allows organizations to make better decisions and further develop business processes by speeding up and providing accuracy for strategic decision-making. The use of AI in the media and subscription industry is not only effective in predicting user engagement with content, but also to help marketers and content developers to better target their audience, then increase and maintain subscribers.
Artificial intelligence uses data to distinguish the purpose for membership delay, cancellation or even downgrades. This is why it can anticipate customer losses and repeat revenue damage in its previous stages.Through machine learning, it reads, structures, understands and analyzes customers' online behavior, subscription parameters, engagements and other aspects that determine how the subscription is working for any subscriber. The more volume of information, the better the anticipation of membership cancellations, allowing subscription merchants to make the necessary steps ahead to prevent loss of income or customer base.
3. Data privacy and security
The accelerating quantity of data in the subscription and media industry inevitably raises concerns around data privacy and security. Consumer data is transforming organizations, however, with this growth comes responsibility to correctly manage the data collected.
The General Data Protection Regulation (GDPR) legislation is among the world’s toughest data protection laws and has transformed the way companies manage their data. It ensures consumer safeguarding by promoting better data protection, better cybersecurity and increasing customer trust. It suggests limits on how much data is collected. Therefore, organizations are limited to only asking for data that is extremely necessary for business purposes. When organizations fail to comply with laws and regulations, they risk substantial fines and reputation damage as a result.
Amazon and Whatsapp are two high-profile organizations who have been fined for not following this legislation. Amazon was found guilty of making it too difficult to opt out of cookies, so they could collect as much personal data as possible. They received a fine of $877 million. Whatsapp was fined $255 million for failing to explain its legal basis for certain data processing (“legitimate interests”).
Data management solutions for the media and subscription industry
Customers are becoming increasingly aware of what data they are giving away, and what happens to that information when they do. As a consequence, companies will have to rethink the way they collect data from their customers. Organizations need to make sure that they are transparent about how they intend to use consumer data and provide them with easy and straightforward ways to opt out of data sharing. This is where effective data management is so important, organizations require clean and secure data, all in one place.
Kleene is trusted by enterprises worldwide to provide end-to-end data management, through intelligent automated systems that maintain security. Our vision is to make business insights a commodity, not a privilege, by combining all your data sources in one place, translated into one language and organized to make it easier for your teams to work with. We do the heavy lifting for you, so you can focus on deriving the insights and innovations that your customers are waiting for.