What Disney+ means for your business or organisation
27 November 2019
Why do you care about Walt Disney entering the subscription video on-demand streaming business with their new product Disney+?
Last week Disney+ launched around the world to massive fanfare. Despite some initial technical issues, their competitive prices and excellent catalogue have attracted huge interest. The Star Wars spin-off The Mandalorian alone has proven a massive draw card.
In the week following the Disney+ launch, Netflix app downloads grow 4% year-over-year. It’s early days but it seems there is still a lot of appetite out there for streaming content.
But what happens when consumers hit the wall? What happens when they check their bank balance and start to feel the hit from signing up to more and more subscription services?
Not only do they have to worry about multiple video on-demand services. Here in Australia it’s not unimaginable for someone to subscribe to Netflix, Stan, Disney+ and Kayo Sports. But you’ve now got more and more software moving to a software-as-a-service model (Office 365, Google Plus), common household products (Dollar Shave Club for razor blades, Three Thousand Thieves for coffee), even grocery shopping is moving towards subscription services.
In February 2018 McKinsey & Company found that subscription-based e-commerce had grown by more than 100% a year over the past five years. Surely that is only increasing.
There is a real risk of increased churn and decreasing customer loyalty as more and more purchases are made through subscription services. As the monthly subscription bill rises, consumers are likely to be more ruthless with cutting services that don’t meet their needs.
How is your organisation staying at the top of the subscription ladder?
Smart organisations are increasingly investing in retention or customer loyalty models – a predictive statistical model that takes your data points as inputs and gives every single one of your customers a score that indicates how likely they are to go elsewhere. You can even make a predictive model more powerful by integrating free and commercial external data sources.
Are you harnessing the power of the data you already have about your subscribers and customers? In an increasingly competitive subscription-based market, you can’t afford to not invest in using data to retain your customers.
The power of data for membership organisations
20 November 2019
Membership based organisations have unique business requirements. Not only do they have to invest in recruiting new members, but there must be some level of investment in retention.
Having a system to keep track of information is essential. Every membership organisation will have some sort of ledger to record who belongs to their organisation, be it a simple spreadsheet or full-blown customer relationship system (CRM).
The power of modern technology is providing more and more opportunities for organisations to step up their offering to members, reduce churn rates and increase revenue.
Some of the advantages are simple, even obvious.
Integrating web technologies like a web-based sign up form or app directly to a CRM eliminates double handling of data and saves valuable time. But these integrations can go even deeper.
How many of your members have visited the “cancel membership” page but not yet taken the final step? And how are you targeting these individuals to retain their membership?
Have you thought about integrating external datasets with your membership database? There is plenty of free and commercially available data that can enhance your understanding of what drives your members.
And from there, properly trained data scientists can take a holistic look at your members and build comprehensive retention and acquisition models. Forget untargeted offers that end up wasting your limited marketing budget on customers who were already going to sign up or had no chance of leaving. Target your spend to those you need to acquire as members, or those who are most at risk of leaving.
Does your business or organisation rely on members or subscribers? If so, how are you harnessing the data that is right in front of you for the best returns.
Quantum Computing – what does it mean for business?
24 October 2019
Google have published a paper in the scientific journal Nature (leaked a month ago, now officially announced). In short, they claim to have made a massive scientific breakthrough - they have achieved "quantum supremacy" - they've built a quantum computer able to perform a task faster and better than any existing classical computer in the world.
Their quantum computer was able to perform a task in 200 seconds which would have taken the world's most powerful supercomputer 10,000 years. IBM, a leading maker of classical supercomputers and another leader in the field of quantum computing have a few issues with Google's claims.
Comparisons to the Wright Brother's flight are all over the place. The scale of this breakthrough can't be understated.
Not sure what quantum computing is?
Classical computers are limited to two states, on and off, represented by the 1s and 0s you've probably heard of. They're called bits.
A quantum computer instead uses qubits - which can have any value between 0 and 1. Qubits can also become entangled - where the value of one qubit is related to the values of other qubits around it. This short video is a good summary. In short, quantum computers will be much faster and more powerful.
Google's breakthrough, regardless of arguments around the edges, show that quantum computers are coming closer to mainstream, real-life applications and are no longer just theoretical.
The implications this has for business are immense.
One of the likely early applications for quantum computing will be weather forecasting. Very large supercomputers in universities all over the world are already crunching massive amounts of climate data to make short- and long-term predictions for the weather. The increased processing capabilities of quantum computing will allow scientists to make sure of even more data, producing more accurate climate models and all much faster.
Think about how this could potentially impact your business. The power and capabilities of machine learning and AI will go through the roof. There will be even more reasons to expand the collection and utilisation of big data. Financial markets will change forever as quantum algorithms predict future events with ever increasing accuracy.
Quantum computing will eventually impact every aspect of business.
Any business making good use of a CRM today will be able to imagine the power of applying quantum algorithms to the masses of relationship and interaction data they’re already collecting.
It will encourage deeper levels of data collections as the power of machine learning and AI takes off.
Quantum computing is on the way. And it will change the world.