Personalisation leads directly to churn reduction | Media Analysis | Business
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Video service providers that personalise their search and recommendations functions saw a 140%  increase in audience retention over six months, according to research from TiVo.

TiVo AngledDevicesLegacy 21Jan2019According to data pulled from TiVo’s its Personalised Content Discovery Platform (PCD), churn is directly related to long-term audience retention. For example, if users are presented with personalised video-on-demand (VOD) titles that align with their most engaged consumption patterns, they are less likely to churn over time.

“In this media and device-fragmented world, identifying which viewers are watching your content – and then driving new viewers to those valuable assets – is more important than ever before,” said Walt Horstman, senior vice president and general manager, advanced media and advertising, TiVo. “This analysis supports the importance of creating an impactful and data-driven entertainment experience for the consumer, while creating pathways to discovering content more easily.”

Providers that use personalisation technology have churn that is up to three times less than providers who manually merchandise their content, according to the results. Based on an analysis of ROI, churn reduction also has a direct impact on the bottom line of content merchandising spend.

“Content must be merged with technology to produce a truly effective consumer experience. This analysis supports the idea that video service providers can better predict when their subscribers or customers will leave their service or content and help them to understand how to better capture their attention. This is also important for marketers when determining where to put their promotional spend and who to target in order to retain key customers,” said Chris Ambrozic, vice president of product management, TiVo.

The study also found that users who spend an above-average fraction of time watching on a weekday tend to be more likely to churn, as compared to those who spend an above-average fraction of time watching during the weekend. Also, while great content is crucial, great content alone is insufficient. TiVo’s churn analysis has revealed that engagement and viewership are the two most important elements to examine when determining how and why a user is or isn’t churning.