Getting a unified view of what is and is not working with customers is one of the biggest challenges facing online video providers (OVPs.) Wicketlabs wants to change that with its new Scorecard for video services.
Unified video service view is elusive
Speaking at the TV of Tomorrow show earlier this year, Howard Shimmel, Chief Research Officer at Turner Broadcasting, said that creating a unified consumption picture across services is difficult:
“I can’t count total viewing today. Pulling that all together is very important to me.”
Without this unified view, it is almost impossible for a video business to understand the dynamics affecting key performance indicators (KPIs.) It also makes KPIs like customer lifetime value (CLV) difficult to measure, manage, and improve.
Why it is so difficult to build a unified service view
Unfortunately, building a unified view of service performance is very difficult. Typically, an OVP utilizes a variety of web services to deliver to customers. Getting performance data from these services has not been easy. Wicketlabs was formed to help ease that burden. The company developed technology, called Wickets, to measure and report the performance of web functionality that is key to a service’s performance. For example, if a service is including Rotten Tomatoes reviews, Wicketlabs can measure and report how fast the review information is returned when requested.
According to Wicketlabs CEO Marty Roberts, the Wicket functionality allowed the company to build its product called Wicket Scorecard, a new unified video service performance product. Scorecard helps direct-to-consumer subscription services better understand the performance of their business.
Wicketlabs Scorecard provides a unified view
The Scorecard tracks 4 broad metrics that should help online video providers begin to improve customer lifetime value. The first is the change in subscribers. Scorecard users can see the number of subscribers gained and lost, and the overall net gain or loss over any period.
Knowing how many people convert from free trials to subscribers is critical. Scorecard provides this information but also allows a user to dig down into the data to find out how the free users are coming to the service. For example, an OVP can see if a user came from social media, from an email, or came directly to the site or app. This information is critical in measuring the performance of marketing campaigns, and in evaluating the best places to spend marketing money.
Tracking the number of subscribers leaving the service is also important. Once again, the Scorecard provides this information and allows the user to correlated lost subscribers with a variety of parameters. For example, Mr. Roberts told me that for one of his customers the Scorecard revealed:
“For some reason, whenever someone converts via an email campaign, they have a higher likelihood to churn out.”
Surprising relationships such as this are difficult to see today. However, with that knowledge OVPs have a chance to modify the campaign and improve the all-important customer lifetime value.
Finally, the Scorecard tracks engagement. A subscriber that is not using a service very much is highly likely to cancel. So, identifying them early allows the OVP to reinforce the value of being a subscriber. This might stop them from leaving at all.
Built for future innovation
The new Scorecard solution pulls together data from the Wickets and multiple other sources. Rather than processing the data immediately and storing the results, the data is stored in its raw form. According to Mr. Roberts, this allows the company to continue to innovate the algorithms used to process the data and reveal new insights later. As artificial intelligence is used more to generate new video insights, having access to the original data could be a very wise move.
As pointed out in the new free white paper Finders-Keepers: Scenarios in the open market for TV entertainment, OVPs are more focused on building profitable, growing businesses. Tools such as Wicket Scorecard could be invaluable in helping them meet their business goals.
Why it matters
Building a unified view of the performance of an online video service is difficult because the functionality is spread out over many web services.
Wicketlabs automates the gathering of performance data from all the web services.
The companies new Scorecard leverages the performance data to build a unified view of the performance of a video service.