MEDIA

CRM and CX Strategy

The client is a leading Nordic media company. One of their business areas is digital play services with film and series as the main content. The industry has faced steep technology development and is internationally dominated by companies like Netflix and HBO.

The Nordic consumer has often access to multiple service providers. In order to win the customer’s loyalty both content as well as user and customer experience are key.

THE BACKGROUND

The media industry has been, and still is, undergoing disruptive changes. Consumers have easy and immediate access to a large amount of content via new digital solutions.

Different business models exist, e.g. subscription based and pay-per-view models.

More and more content production is moving from the large film studios to the play/streaming services companies.

UX and CX are key in creating customer loyalty. Development within this area is led by international players like Netflix.

The Nordic market has a high digital maturity and consumers have high expectations with regards to UX and CX

THE CHALLENGE

The client has a strong brand on the Nordic markets and a growing customer base within their digital play services, however neither customer experience, nor CRM have not had enough focus.

One of the main challenges has been a lack of insights in transaction data and purchasing behaviour (operational data) of their existing customer base.

Another challenge has been to collect and understand customer feedback (experience data) and understand the correlation between customer satisfaction and customer lifetime value.

This overall lack of customer insights made it hard for the client to have relevant, personalized customer communication.

How can the client improve customer loyalty and increase number of transactions per customer?

OUR SOLUTION

In cooperation with the client, Differ led a project with the ambition to get a better understanding of the customer base and develop a strategy for improved CRM and CX, which will lead to increased customer lifetime value.

The project delivered upon the following milestones:

A thorough analysis of the complete customer base, purchase behaviour and purchase characteristics
Development of a customer segmentation model that is based on frequency and recency of transactions
In cooperation with Differ’s sister company Feedback Lab by Differ, development and implementation of a Voice of Customer (VoC) program, measuring and follow up of NPS and text analytics, both in general and touchpoint specific
Development of segment dashboards giving an overview of segment performance per specific KPI
Development of a customer base strategy and differentiated goals, strategies, tactics and activities per segment
A road map defining how the client can realize the strategies and achieve overall goals

THE RESULT

The program delivered new customer insights, a customer segmentation model based on RFM (Recency, Frequency, Monetary) principles, and a clear strategy for how to achieve increased customer lifetime value.

Some of the results:

A deep understanding of the existing customer base
An automated VoC program measuring and following up upon NPS and analysing text continuously
A tool for matching O-data (operational data) with X-data (experience data)
Improved relevance in customer communication

Differ continued to support the client in realizing the strategy and further developing and running the VoC program.

”Differ helped us to understand our customers better, both in terms of their transactional behaviour and what they think of us, and created pragmatic tools for us to optimize customer engagement and loyalty. On top of this the journey with Differ has been a great experience for us!” – CX Manager