Several waves of digitalisation have transformed the media industry since its origins, and this century isn’t an exception. More than ever, media companies need to keep transforming in a fast-changing environment to succeed. This new technology might help you create new channels to communicate with new customers, but it might also entangle some challenges you and your media business need to face to overcome the infamous “digital gap”. So if the digital transformation of the media business keeps you up at night, keep reading!
Social media and the advance of e-channels have shaken up the way content is consumed. In a hyperconnected world, great quality content is no longer enough, but rather media enterprises must invest in optimizing user experience, offering customised content, different engagement methods, and a new way to monitor conversations.
To create the right content and present it in the appropriate context, media organisations require innovative and digitalized solutions. This means that all media companies, big or small, need to keep technology at the heart of what they do, particularly if they want to target younger audiences.
Before, production was directed towards the creation of a physical product. The payoff was then achieved thanks to the purchase of these items. The old days when newspapers were bought at stands are mostly over. Now you can enjoy them in your app or mailbox and all information you need is one click away.
The digital revolution has opened several new scenarios for the media industry including monthly subscriptions, limited free content, etc. Although this opens a whole new paradigm for reinventing your business, the increased competition and the availability of free content have made users more unwilling to pay for services. This is particularly true among young people who want instant access to content anywhere at any time. This might be putting your business at stake. Great quality content has an elevated cost and the importance of not relying on paid ads or sponsors might be keeping you up at night.
Conversion has become a difficult subject for many media companies and the chances that you're experiencing problems with yours are very high.
From a simple point of view, the problems are clear: higher competition and fewer people willing to pay. Online platforms have lowered the cost and eased access to audiences, making that almost everyone can create content and post it online. Media outlets have flourished in the latest years and the competition is higher and higher. Furthermore, as explained before, people are less willing to pay for your content. Hence, converting casual readers into actual paying customers seems to be more and more difficult.
As a consequence, media outlets have had to lower the cost and start a quest to improve efficiency. Thus, it’s crucial for the survival of the media industry to lower the entry barrier when accessing your product. And one of the key assets to achieve it is digital payments.
From mid-market businesses to large global enterprises, the impact of Covid-19 has vastly accelerated the move towards digital payments. There is no turning back to manual, inefficient, paper-based B2C payments.
The impossibility of physical relationships speeded up an already ongoing transition. The need of having a digital platform and a well-functioning e-system was more evident than ever during the lockdown, and the truth is this tendency is here to stay. Hence, finding the right way to provide payment methods to your clients is the key to unleashing your full potential as a business in the media industry.
Payments are much more than a mere business necessity; they can offer a competitive advantage. By having a better understanding of payment flows and a lower payment barrier for customers, you can unlock more revenue, launch innovative products, create a more memorable experience, and overall increase the company's value. Even the smallest improvement in payment performance can significantly boost the bottom line of your business.
But how to do that? There are several ways in which you can improve your business, but when it comes to digital payments, we are the experts. So, here are some tips on how payments can help your media business boost its subscription volume.
In the past years, the media industry has seen how monthly subscriptions have become a megatrend worldwide. Studies conducted in Europe show that the ordinary citizen has on average three ongoing subscriptions and according to IDC, 53% of all software revenue will come from a subscription by 2022. Netflix and other streaming platforms have substituted DVD shelves, Spotify’s subscriptions have overruled CD purchases and most news outlets rely on free limited content models to find revenue.
However, the increase in the number of invoices needed to keep track of all monthly transactions comes with a cost. When digitalising your business, payments should definitely come along. Not only paper expenses are having a solid impact on the environment, but the paper cost of producing those invoices is damaging your potential revenue. Obsolete paper flows can be converted into recurrent digital payments. Even more, those outdated paper invoices can be substituted by digital ones when you have the proper tool.
In the classic form of payment or manual payment, the responsibility of making the transaction relies on the customers’ ability to pay. In other words, the method of payment is active in this scenario. This might lead to the customer forgetting to renew the payment, some problems in the transaction, delays, or general irritation about having to repeat the same process over and over again which threatens your customer retention rate.
By automating payments with a recurrent payment method, you invert this responsibility. The customer still can cancel the payment if they wish to do so, but you ensure that no involuntary churn problems with your business performance boosting your customer retention.
If you are a media company owner or are responsible for the financial situation of one, retaining your customers might be one of your highest priorities. However, although it might sound counterproductive, making it easy to leave and suspend payments for your clients can improve your conversion rate.
Subscription-based media businesses are offering flexible payment models. In a volatile and changing environment, many customers are looking for low-commitment products where they feel they can stop their subscription easily and at any time. Having a system that easily allows you to renew or cancel the payments helps you to lower the entry barrier, allowing customers to feel at ease and even increasing their loyalty.
Payments should be fast, functional, and free of confusing or unnecessary features. However, this isn’t always the case. For example, according to the Baymard Institute, many e-commerce sites have twice the necessary number of data fields in their payment processes, making it tiresome and difficult for some customers to finalise the payment.
Even more, a poor checkout option might extend the waiting time for your customers, following a study conducted by Portent, every extra second of loading time can decrease your conversion rate by 4,4%.
The digital world requires a payment service provider (PSP) that can make transactions smooth and seamless for your users and provide them with a safe and ready-to-use checkout option.
The easier the process is for your customers, the better. When your customer is familiarised with the payment options, it might be easier for them to allow the purchase without extra effort. In a study conducted by Cardtronics, 7 out of 10 consumers make payment decisions depending on which available payment complied better with their security and commodity standards. For example, as a payment service provider, Waytobill offers both invoices and cards, as well as other payment methods depending on the country or region, such as Digital Autogiro in Sweden.
As a media company, providing your customers with the most seamless experience is crucial. According to Harvard Business Review, 73% of consumers use multiple channels during their purchasing journey.
An Omnichannel payment strategy can provide your product or service with a coherent feeling regardless of the channel your clients might use, creating a more personalised experience for them. This won’t only improve your conversion rate but will boost your customer’s loyalty, which is important for your media business. For example, telesales is a core channel to maintain when it comes to Omnichannel strategy since it can give your sales peach the personal tone needed when it comes to B2C sales.
Today, online payments in the media industry are at the centre of business performance, revenue generation, and the best-in-class customer experience that the market expects. A good payment service provider can help you improve conversion and retention for your media company.
Progressive businesses are aiming to redefine payments as a competitive advantage, particularly in this sector which is experiencing a redefinition of how the market works. If your business is starting with this process, you are at an ideal moment, but you have to act fast. Remember, media digitalisation is a current reality, and your media business can jump right on the wave with the correct partner.
Do you have questions about media digitalisation? Do you want to find out more about our payment solutions? Contact us!