Personalized Marketing Can Solve Customer Acquisition Woes for Subscription Services

Posted on Jun 6, 2019 · 2 min read

The results are in: customer acquisition is at its best with uninterrupted, premium content. Viewers will pay more for fewer ads. Even if that content is (more or less) “free.”  

But how do content providers move confidently to a direct to consumer (or DTC) model when they’re up against giants like Netflix and Spotify?

Attract New Subscribers with Exclusive Promotions

One of the subscription industry’s greatest strengths is its personalized content. Even the ads are more personalized. Therefore, it would make sense that the best way to capture a loyal audience is through personalized marketing.

Gated offers are promotions aimed at groups of consumers based on their social identity. This includes life stages (like students and seniors) or affiliations (like military members or teachers).

These deals are different than the universal “one-month free” discount many subscriptions offer. Since the subscription market is saturated with such deals, consumers are not enticed to stay with one company. They hop from one subscription to the next, taking advantage of a first free month but committing to nothing.

Personalized Marketing Establishes Trust

Tapping into a consumer’s group identity creates an emotional connection with the subscriber (54% feel rewarded by personalized marketing like this). Gating the offer through digital verification adds an extra level of exclusivity by requiring users to confirm their identity.

Unlike “one-month free” offers, gated offers establish a stronger rapport between business and user, increasing the success of customer acquisition. Because exclusive offers are based on something personal and specific, consumers feel as though the brand cares about them. That facilitates a greater sense of brand loyalty, even if the discount is less than “free.” In fact, curation subscription brands like YouTube, which offer an exclusive student deal, see over 90% conversion to full-price after the student has graduated.

Rather than focusing on a price war, subscription services should focus on the most basic of customer acquisition strategies: knowing their audience and giving them what they want.

Learn more about how personalized offers can work for your brand with our e-book, Lower Acquisition Costs with One Simple Strategy: Gated Offers, here.

Hannah Tyler by Hannah Tyler