Errors and any other interruptions are one of the major sources of frustration for customers. Vimeo recently released data that says that 6% of SVOD users churn due to technical reasons. So in essence there is a real cost to every error that a viewer on your platform experiences. We made the effort to calculate how costly an error is.
S. Shunmuga Krishnan and Ramesh K. Sitaraman have calculated that “a viewer who experienced failure is 2.32% less likely to revisit the same site within a week”. Based on this research we created the following calculator:
Using Vimeo’s “Technical Churn Rate” of 6% we calculate how much a decrease in errors can prolong the customer lifetime value for this particular churn reason.