netflix churn rate

Top Business Lessons for SaaS OTT and Streaming Platforms to Learn from Rising Netflix Churn Rate

Oh, did you say Netflix has been seeing a higher churn rate? Sounds unbelievable, but yes, you heard right!

In recent times, Netflix faced severe criticism that led to a high churn rate. There were different reasons why Netflix became the prey of backlash but this article focuses on the solutions and strategies for the SaaS business that they can learn from Netflix to avoid a higher churn rate.

The research shows that Netflix saw 3.6 million cancellations in the first quarter of this year. Despite being one of the giant platforms for streaming and binge-watching, it was staggering to see that.

However, for B2B and SaaS businesses, it is an intimation in anticipation!

In this article, we are going to look at the lessons that SaaS streaming platforms can learn from the rising Netflix Churn rate. Let’s get into it without any further ado.

Netflix Churn rate

The increasing Netflix churn rate is based on the service cancellations and tells how the performance declines from 2012 till now i.e., 2022.

The loss of subscribers over the decade crosses the count of 250 million subscribers. However, in 2022, Netflix faced severe churn for an increase in pricing and some limitations to the access by the users that cause the subscribers to cancel the subscription.

Now, let’s deep dive into the lessons or strategies that you can use to reduce churn rate using churn reduction software.

Lessons for SaaS Businesses to Learn

Right off the bat, an important factor to notice here is drawing and mapping out strategies is not enough – one needs to have churn reduction software that facilitates the retention management and tools to successfully implement what you need.

Monitor and Analyze Customer Behavior

When it comes to churning the first factor to keep your eye on is the customer behavior and customer engagement with the product. To study this, merchants must look into the factors determining their churn rate.

If your user does not engage with the product enough or if some factors are making the customer frustrated then there are higher chances that your customer will churn.

With churn reduction software, you will be able to specifically monitor the behavior and have an insight that will help you control the churn. Retaining customers is as important as acquiring them for the SaaS and B2B businesses.

Invest in technology that provides value to customers

Make your business tech-savvy enough that it helps customers to have a smooth shopping experience. For SaaS and B2B businesses, it is highly recommended to leverage the AI-powered customer retention software that will help business to improve their merchandise and give a better customer experience.

For B2B and SaaS businesses, payment gateways are the most important technology that must be incorporated into the business. To make the business global, it is necessary to have multiple third-party integrations so that customers can easily process the payments with one click only or not even with the help of automation.

SubscriptionFlow provides third-party integrations for globally known payment gateways such as Adyen, Stripe, PayPal, Braintree, and many other options. Businesses working on subscription-based billing can increase revenue generation and smooth transaction processes with our features like payment routing and automated billing.

Read more: How do SubscriptionFlow and HubSpot Integration Work in Tandem for Retention Management?

Study Buyer Persona and Set Your Target

The buyer persona is important when you start a marketing strategy for your business.

It gets easy to sell your products if you have studied and analyzed the buyer persona for your business.

If you are working for enterprises and small to mid-range businesses, then studying the buyer persona would help in strategizing the pricing, features, products, and other elements of the B2B or SaaS businesses.

You can further compliment your more by persona by studying the analytics and buyer journey using churn reduction software.

Up-sell and Cross-Sell

Using historical data and AI, they categorize the data based on the data gained from the analytics. with churn reduction software like SubscriptionFlow, you can create product reports and summaries, and observe the preferences of customers which will help you regulate the retention as well as account expansion based on the customer preferences.

Streaming services can offer their customers some options to upgrade their plans or cross-sell some other line of features in order to retain the customers and revenue streaming through the source.

Improve Customer Support Experience By Automation And Self Service Portal

Customer support is the winning factor for businesses if it’s done right.

Gone are the days when customers would wait for hours to access the support teams. They look towards having an automated customer support system which is also supported by a knowledgebase and customer service portal.

The customer service portal has two perspectives: for merchants and merchants’ customers. Netflix over the years has improved its customer support which aims to resolve customer issues seamlessly powered by automation leading to a reduction in Netflix’s churn rate. it might be a slow and steady process but working on the strategies will produce the desired results.

Keeping your customers in a state of dilemma while they cannot find any solution is like paving a way for customers to churn out. Using churn reduction software like SubscriptionFlow you can give your customers a self-service portal that will help them to manage the minimal issues using their portal.

Let’s say a customer faces a problem in a transaction procedure or for payments, then the user can verify another payment method or payment gateways using their customer self-service portal. Merchants can seamlessly have an access to their customer portal and the permissions as well.

Read more: Subscription Retention Analytics: Optimize the Visibility In Your Customer Behaviors and Business Health

SubscriptionFlow as your Subscriber Retention and Churn Reduction Software – Schedule a demo!

For churn reduction software – you are in the right place. SubscriptionFlow offers churn reduction software that aims to retain customers by providing useful insights, a customer self-service portal, analytics that help in understanding buyer persona and buyer journey, churn factors, churn scores, and implementation of churn reduction strategies.

If you want to know how SubscriptionFlow applies churn reduction strategies and improves customer retention rate then you may want to read our previous article on Customer Retention Cheat Sheet.