July 12, 2016 | Authored by: Vindicia Team Blogs
How does quality relate to value when it comes to OTT content?
The best way for a business to gain new over-the-top content subscribers is by providing a valuable product. With the rapid development of new audio and video capabilities, it seems the definition of value is only expanding. Virtual reality and 4K quality video all appear to be promising developments that will enhance the consumer experience, allowing fast-acting businesses to quickly gain the upper hand on their competitors.
"Businesses must make sure they're doing all they can to meet the expectations they've set for themselves."
However, businesses must make sure they're doing all they can to meet the expectations they've set for themselves. Recent research revealed many companies overestimate the quality of their online experience, which diminishes the overall value the customer receives. Value is about quality and convenience. If a business lacks in one area, customers will likely cancel their subscriptions and head somewhere new.
Do businesses provide consistent quality?
According to the 2016 Digital Experience Report, a survey conducted by the analyzing company Actual Experience, business leaders understand that there is a correlation between quality and the customer experience. Ninety-three percent of respondents said the customer's digital experience is important to their business's success, and 78 percent admit to often switching brands themselves because of a poor one. Meanwhile, 56 percent believe poor quality leads to customer churn. Other consequences of poor quality included an increase in complaints and a loss of revenue - possibly through canceled subscriptions.
Unfortunately, it seems as though businesses aren't measuring up. More than half believe their customer's digital experience is excellent - 54 percent, to be precise - but only 22 percent said this experience was consistent and high quality. Meanwhile, 78 percent admitted to inconsistency, in regards to their digital quality experience.
"Providing a consistent quality experience is an important goal for any business."
Value is more than quality
Providing a consistent quality experience is an important goal for any business offering web-based services, but it's not the only thing to focus on. The music streaming service Tidal is proof. The Wall Street Journal recently reported that Apple is in talks to buy the company, which markets itself as the highest-quality music streaming option available. Although some insiders claim no such talks have taken place, a rumor isn't good for Tidal's image. The company went through three CEOs in less than a year, and consumers are frustrated by its high subscription fees and issues with charging canceled accounts. As TechTimes reported, many customers found Tidal had randomly charged their accounts months after they hand canceled. Tidal offered three free months of its premium subscription as an apology, but in doing so reactivated user accounts, ensuring canceled subscribers would be automatically billed again once the free service ran out.
Although the expenses reflect the high-quality sound Tidal provides, this gain wasn't enough to satisfy certain customers. By not providing a seamless, convenient refund experience, Tidal decreased the value of its offer and angered consumers.
Tidal is a great example of why hype and quality alone can't keep a business out of hot water. Organizations that use subscription billing to monetize their online services must also add customer convenience into their mix.
Which billing platform is right for B2C subscriptions?Download
- Best Practices
- Connected Device
- Customer Acquisition
- Customer Communication
- Customer Retention
- Industry News
- IOT (Internet of Things)
- Media and Content
- OTT (Over the Top)
- Publishing and Content
- SaaS and Services
- Subscription Billing
- Subscription Business
- Subscription Business Model
- Subscription Payments