from Statista.com
— this post authored by Felix Richter
As everyone running a subscription-based business model will tell you, it is one thing to add new subscribers to your service, but keeping your existing subscribers happy and the churn rate low is at least as important.
As everyone running a subscription-based business model will tell you, it is one thing to add new subscribers to your service, but keeping your existing subscribers happy and the churn rate low is at least as important.
The reasoning behind this is simple. Acquiring new customers typically costs money, money that can be saved if you keep the ones you already have.
Netflix (NASDAQ:NFLX), the world’s most successful subscription-based video streaming service, appears to be doing an exceptionally good job at both aspects of the game. While continuing to grow its customer base, the company also manages to make its subscribers happy. According to a recent Forrester survey among U.S. video streaming subscribers, Netflix scores well (and better than its competitors: NASDAQ(AMZN), HBO, a subsidiary of Time Warner (NYSE:TWX), and privately held Hulu) in every relevant aspect of its business.
Be it the quality of its original content, the ease of use of its service or the latter’s reliability – as our chart illustrates, Netflix outperforms its competitors in each of these metrics. That is from a customer point of view, which makes it all the more relevant.
This chart shows how video streaming services in the United States are perceived by its subscribers.
You will find more statistics at Statista.
