As of late, we have even seen service providers starting to offer electronic sell through (EST) models. This extends the current monthly relationship to an on-going relationship with the introduction of a persistent cloud-based digital locker. Even the emerging “cord never” generation that shops everywhere and anywhere for content can be lured into becoming repeat customers using this portfolio of transactional models.  A prime example of servicing this evolving consumer mindset is Comcast’s Xfinity on Campus. This service, provided by a DSP, enables students at universities to watch live TV on laptops, tablets and smartphones while on campus. Students can access thousands of current-season TV shows, hit movies, and premium sports content using their university ID credentials.  The service is linked to recurring payments for premium subscription services, and students select from stored preferred payment methods in their e-Wallet for fast and easy payment. That student does not see their relationship with Comcast as the traditional provider of hardware in the living room, but as a digital services provider that gives them access to content, when, where, and how they want to consume.

The e-Wallet has rapidly become the pockets for the digital content world – absolutely vital to drive simple, frictionless transactions.  This e-Wallet (much like pockets) allows consumers to store their credit or debit cards, PayPal accounts, brand specific or external loyalty schemes, and even coupons or gifts they have received, in one centralized location. When that consumer is sitting at the office and wants to purchase content to watch on the train home – they can choose to incorporate it on their existing bill or maybe put that gift card to use.  When the consumer has just a few short minutes to make a content purchase before boarding that commuter train, that frictionless payment provided by the eWallet is vital. Couple that payment with powerful merchandising that can present that same consumer the "out the door" promotion for action content, paid for with their loyalty points in a hurry makes the difference between coming back to their DSP or shopping around for the same movie.

Once the consumer has shown a level of brand loyalty by coming back to you for SVOD or AVOD models, it’s time to reward that loyalty to sweeten the deal.

Reward Loyalty

Loyalty programs have become part of daily life; Our love of collecting points for cash back, free gifts and reaching new tiers of discounts pays off every time we fill our coffee cups, our gas tanks and our closets.  Retailers have us where they want us – coming back for more – and our loyalty to the brands that reward us is higher because of those rewards. According to Frederick Reichheld, the author of The Loyalty Effect, building brand loyalty with just 5% of consumers creates increased revenue by 25% for those loyal consumers.

Applying the basic loyalty concepts we see in the retail sector to merchandising programs can offer the extra boost that DSPs need to create even more loyal consumers, and new revenues.  There are a lot of options to engage consumers from registration with your service to their very first purchase and beyond.  For first time subscribers, offer a reward after their first video rental or purchase.  This could be as simple as a digital coupon toward their next purchase and giving a boost of loyalty points.  Dynamic rewards can also strengthen rentals or sales for a specific promotion or featured product. But dynamic doesn’t equal random – those rewards can be used in a dynamic fashion for each consumer by leveraging information about that consumer and how they engage with your experience. Say you have a consumer who is not only an SVOD subscriber, but continually purchases TVOD titles. Reward that consumer by incrementally increasing the amount of points that specific consumer accrues with continued purchases. This combination of consumer insight and dynamic merchandising builds that brand loyalty because it provides the consumer value for things they desire.