Posted by: Matt Shanahan
Subscriber loyalty is not just about revenue retention. In fact, revenue expansion is where a loyalty metric really starts to hit its stride—cross-selling, up-selling, and even new subscriber acquisition. Because Demand Rating is measure of subscriber loyalty, it can be used to identify new revenue opportunities with existing subscribers through targeted cross-selling efforts.
Denials, the statistic that tracks attempted access of unlicensed content or services, is a great indicator of subscriber demand, but denials alone don’t indicate whether a cross-sell opportunity exists. Demand Ratings give that insight. High Demand Ratings equal subscriber loyalty, so subscribers with high Demand Ratings are already ‘feeling the love’ with your offerings. They perceive good value in your service, making them likely to be open to complimentary and expanded offerings; they instantly become your highest priority cross-sell target. In short, high Demand Ratings provide the answer on who the best prospects are for cross-selling and denials provide the answer on what to cross-sell.
Take the situation where there is a high Demand Rating, but no denials. Can you tell whether a cross-sell opportunity exists? Demand Ratings again provide an answer. What to offer these ripe subscribers becomes easier as well by looking at the product mix for peer companies with high Demand Ratings. The current product mix for a subscriber can be compared to product mix of peers within their segment, providing high probability recommendations for cross-selling.
By reducing subscriber loyalty into one comparable number, subscription businesses can suddenly use quantifiable evidence to target their cross-selling efforts. Demand Rating gives critical insight into what should be offered and to whom. Looking at Demand Ratings and product mix across peer groups offers a model for scaling success.
About Scout by ServiceSource
Contact
