We previously covered the pitfalls of taking a simplistic, “good enough” approach to personalization, search and recommendations. However, choosing an advanced solution is only a step toward achieving more effective results. Below we continue the conversation by highlighting both the importance of proper implementation as well as the continuous optimization efforts required for successful engagement and reduced churn rates.
Effective implementation
What good is it to have a great tool at your disposal if nobody knows how to use it? At TiVo we understand just how important it is to properly implement personalization, search and recommendations and the impact it can have on business. Take customer churn, for example. In just one instance of a PCD customer implementing a personalized “Before you go” use case, they achieved a 23% increase in customer retention, leading to substantial revenue preserved.
So what does proper implementation actually look like? For starters, it’s helpful to view it as a marathon and not a sprint. The ever-evolving process involves constant tweaking, improvement, and optimization across the various use cases, carousels, and discovery results. Netflix knew this early on, and their investment in recommendations dwarfed the industry as far back as 2014.
Always optimizing
The marathon concept reflects the amount of previously mentioned tweaks, optimizations, carousel, business rule changes and more that are made per year. Platforms that are driving true engagement and achieving reduced churn rates are doing so not via a ‘set and forget’ method, but rather through a trusted continuous optimization effort of: build, tweak, AB test, analyze, improve, re-build, tweak, AB test, analyze, etc. This practice is called DMAIC (Define Measure Analyze Improve Control), a well-known and trusted methodology.
In looking at TiVo’s PCD deployments in 2024, we reference this process to see just how many changes were made throughout the year. The numbers showed that our customers are, on average, making one change each week. Customers who specifically use the PCD Engagement Console not only for personalization, search and recommendations, but also as part of their CMS workflow, are averaging one change or more per day. The bottom line is all successful customers are constantly tweaking, improving, and modifying their personalization deployment to drive greater results and improved engagement.
Nothing lasts forever
From TiVo’s experience of running hundreds of AB tests and making thousands of changes, we typically see that when a change is made, the impact it drives is ephemeral. As referenced in the chart below, after a change is made, the conversion rate performance spikes (from blue to green bar). Yet that higher conversion rate does not persist forever. Rather, there is a decline over time and another optimization change is warranted. When the cycle repeats consistently over time, performance is gradually improved.
All this means we can never become complacent, and with our customers we never do. Continuous improvement and tweaking with a fully functional personalization, search and recommendations solution is the best way to drive engagement and lower subscriber churn.
In our next blog, we’ll take a deep dive into the types of changes companies are making to drive real impact.
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