Converting casual consumers into loyal fans using data-driven technology

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With the power of cloud, intelligent automation and connected technologies, the digital explosion in the media industry is the most accelerated it’s ever been, especially since it engages with human emotions more directly than any other industry. Even before the pandemic, our digital lifestyle had somewhat distanced society physically, yet it enabled us to connect at an unprecedented scale, faster than ever before. The need for entertainment and leisure has increased, however traditional business models are becoming obsolete and irrelevant.

The way we broadcast, consume and engage with content is constantly changing. So, combining data with the latest technologies is crucial to opening up new avenues, increasing revenues, and engaging with consumers. It’s this data-driven insight part of the digital transformation which will help gratify existing fans and gain news ones, while effectively controlling costs.

In layman’s terms, it’s crucial to gather as much user information as possible to create successful interactions. New business models require companies to deliver content and user experience, but faster, which means media organisations are struggling to cope with the pace of change needed to meet demand. Some challenges include:

  1. Print media, traditional models, revenue decline, and the subscribers’ transition to digital channel.
  2. Transforming into digital market where there’s growth; this means understanding the needs, preferences, behaviours of digital customers.
  3. Balancing ad sales revenue vs subscriber revenue (Balance paywall)
  4. Using the power of digital automation technologies to deliver content quicker and enhance the user experience.

Innovation powered by an insights driven digital transformation

This approach is underpinned by machine learning (ML), data science and artificial intelligence (AI) capabilities. Innovation is in the DNA of the media and entertainment industry. However, an innovation led approach on its own will struggle to resolve the digital challenges posed above. To address these challenges and derive value, a multi-pronged approach which fuses innovation, business value, and insights, AI and ML capabilities has proven to be successful.

Media companies which have been designed for fans have many competitive advantages. These companies know more about who and where their users are, what they want, and how to deliver it.

Take Spotify, for example, a global music service which has a database of over 100 million users. With data-driven actionable insight capabilities, the music streaming platform enables artists to sift through data and pinpoint loyal fans versus casual consumers, so artists can build a stronger fan base.

Media companies need to orient themselves around fans. They need capabilities to help them operate in more flexible ways across content, distribution, and user experience.

At Invenio, we’ve seen organisations which have put digital and innovation at the forefront, automate their content lifecycle, and use AI, ML and data science capabilities to increase subscription rates, convert consumers into fans, and better understand user behaviour and preferences. Our approach is underpinned by ‘think big’, ‘start small’ and ‘scale fast’ principles, with a primary focus on maximising business value.

What are the benefits of an insights driven digital transformation?

As consumer behaviours continue to evolve, companies with the deepest user insight will have a significant advantage. By using AI and ML capabilities to identify trends, user preferences, behaviours and demographic profiles, media companies can engage with and improve the user experience. They can drill into the functional, emotional, and social behaviours which help convert users into fans.

They can improve viewership and learn from facial expressions and emotions to design future programs. This capability enables organisations to forecast and schedule programs so they can target the right audience at the right time. Intelligent automation powered by AI and ML techniques can automate most of the content lifecycle, thus the core team can focus on strategic tasks, such as creating user experiences, increasing fans, and identifying ‘next best actions’.

While the pandemic may have boosted consumer habits, the resulting higher demand for content means operating costs are rising quickly in the industry. Media companies need to regain control of spending and better manage the content lifecycle. Using the right tools and technologies, with AI and ML capabilities, every company can be smarter about when and how to spend, with the ability to see what content is or isn’t working.

Netflix’s pre-pandemic subscriber loss taught us that no one can breeze through a digital transformation. Even those who disrupted the industry must be vigilant when it comes user experience, content development, and spending.

Learn how our experts helped The Globe and Mail drive operational efficiencies and enhance customer experiences with the right integration strategy.

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