Cutting Subscriber Churn with Media Intelligence

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Published on Fri, 22 Aug 2014 12:51:31 +0000 Indexed on 2014/08/22 16:30 UTC
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There's lots of talk in media and entertainment companies about using "big data".  But it's often hard to see through the hype and understand how big data brings benefits in the real world.  How about being able to predict with 92% accuracy which subscribers intend to cancel their subscription - and put in place a renewal strategy to dramatically reduce that churn?  That's what Belgian media company De Persgroep has achieved with Oracle's Media Intelligence solution.

 "One of the areas in which we're able to achieve beautiful results using big data is the churn prediction," De Persgroep's CIO Luc Verbist explains in a new Oracle video.  "Based on all the data that we collect on websites and all your behavior, payment behavior and so on, we're able to make a prediction model, which, with an accuracy of 92 percent, is able to predict that you probably won't renew your newspaper, anymore. So our approach to renewal is completely different to the people in that segment than towards the other people. And this has brought us a lot of value and a lot of customers who didn't stop their newspaper where else they would have done so."


De Persgroep is using Oracle's Big Data Appliance, along with software from Oracle partner NGDATA to build up a detailed "DNA profile" of each individual customer, based on every interaction, in real time.  This means that any change in behavior - a drop in content consumption, a late subscription payment, a negative social media comment - is captured.  Applying advanced data modeling techniques automatically converts those raw interactions into data with real business meaning - like that customer's risk of churning.

The very same data profile - comprising hundreds if individual dimensions - can simultaneously drive targeted marketing campaigns - informing audience about new content that's most relevant and encouraging them to subscribe.  It can power content recommendations and personalization right in the content sites and apps. And it can link directly into digital advertising networks via platforms like Oracle's BlueKai data management platform (DMP), to drive increased advertising CPMs.

Using Oracle's Media Intelligence solution enables this across De Persgroep's business - comprising eight newspapers and 25 magazines published in Belgium and The Netherlands, and digital properties including websites with 6m daily unique visitors, along with TV and radio stations. "The company strategy is in fact a customer-centric strategy, so we want to get a 360-view about our customers, about our prospects. And the big data project helped us to achieve that goal," says Verbist.

Using Oracle's Big Data Appliance to underpin the solution created huge savings.   "The selection of the Big Data Appliance was quite easy.  It was very quick to install, very easy to install, as well. And it was far cheaper than building our own Hadoop cluster. So it was in fact a non-brainer," Verbist explains.

Applying Media Intelligence approach has yielded incredible results for De Persgroep, including:

  • Improved products - with a new understanding of how readers are consuming print and digital content across the day
  • Improved customer segmentation - driving a 6X improvement in customer prospecting and acquisition when contacting a specific segment
  • Having the project up and running in three months

And that has led to competitive benefits for De Persgroep, as Luc Verbist explains: "one of the results we saw since we started using big data is that we're able to increase the gap between we as the market leader, and the second [by] more than 20 percent."


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