In the final post of our DTC insights series, we'll look at customer acquisition and retention. Our insights reveal important info about the role streaming can play in driving conversion and increasing customer lifetime value for DTC brands.
Our results are based on a 15-minute online survey of 4,254 Roku customers between September 29th and November 15th of 2021. Survey participants were recruited from customer emails.
OneView by Roku, the ad platform built for TV streaming, and our Core 6 framework can help your brand reach your customers across devices and channels, incentivize purchases, and even address the issue of cancellation.
After seeing a DTC ad, Roku streamers take actions to learn more or purchase products. Our insights demonstrate streaming’s effectiveness at every stage of the funnel. Over a quarter of viewers discover new products from streaming ads, 50% look up product reviews for brands they’ve seen advertised, and 14% make a purchase.¹
Price and convenience continue to be the biggest motivating factors² when Roku users are deciding whether to sign up or purchase a new DTC product or service. 79% of Roku streamers think price is very important when making a DTC purchase, and 51% are influenced to use a service if it makes life more convenient.
Free trials, promotions, and value-centric ads will go a long way toward reaching value-conscious consumers.
Trials and offers don’t just incentivize new customers, they help retain existing ones by preventing cancellation. According to our insights, one-in-three customers decide whether to keep or cancel a subscription by the time a free trial period ends, and 45% wait three months or less to decide whether to keep a subscription going.³ The trial period presents a critical window for customer retention. It’s also important to continue marketing to customers after that first purchase or sign-up. In fact, better marketing tactics with current customers could prevent cancellations. Our survey results show that value is a key factor for customers considering cancellation, and additional discounts or promotions can motivate them to stay.
Over half of Roku streamers say better value for the cost of products would prevent them from canceling.
TV streaming offers a comprehensive set of solutions for DTC brands trying to reach new customers and retain existing ones. Roku streaming ads effectively influence DTC purchase decisions, particularly among younger viewers.
TV streaming helps DTC brands reach an engaged and receptive demographic at every stage of the funnel. Our insights show that, like DTC customers, streaming viewers care about convenience, value, and saving money. Streaming advertising helps brands communicate those values in the awareness stage and then deliver offers that connect with a value-savvy audience. This helps drive new business and prevent unsubscribes.
The specificity of segmentation with OneView allows DTC brands who advertise on our platform to connect with the right audience at the right time with the right offer.
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¹Roku Internal Survey Results, November 2021 Q17: Once you buy a product or service from a DTC brand you like, which of the following are you likely to do? Please select all that apply.
²Source: Roku Internal Survey Results, November 2021 Q16: Which of the following factors, if any, influence your decision to use a DTC product or subscription service? Please select all that apply.
³Source: Roku Internal Survey Results, November 2021 Q10: Once you sign up for a DTC subscription service, how long does it typically take to decide if you want to keep it?