84% of Pay TV Subs Would Cancel Due to a Poor Customer Experience
Content alone isn't enough, warns the London-based pay TV monetization company Paywizard. It conducted a study of over 6,200 consumers in six markets around the world and found that 84 percent would cancel a TV subscription if the service was lacking or if the company wasn't in touch with their needs. That's not all talk: The study also found that 24 percent of those surveyed had cancelled an online pay TV service in the previous year because of a poor customer experience.
Paywizard's survey questioned consumers in the U.K., U.S., Germany, Australia, Brazil, and Singapore.
The results work both ways, as a positive customer experience can keep customers around longer: 46 percent said they kept a pay TV service longer than they planned due to a positive customer experience.
Age also plays a role, as younger consumers value a positive customer experience more. Of those under 35, 57 percent say a positive customer experience has led to them keeping a pay TV service longer than they would have otherwise.
Paywizard recommends pay TV services pay attention to customers service as a hedge against the current OTT experimentation taking place. Consumers are sampling new online services these days, with 64 percent of those who haven't added a new subscription in the past saying they would cut down on their existing service if they did start a new plan. The lesson, Paywizard says, is to build strong bonds with customers now. Content will get consumers to look at a service, but it's attention to consumer preferences and an understanding of customer needs that keeps them around.
For more survey results, download Facing the Perils of Failed Customer Experience for free (registration required).
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