NEWS4 January 2024

Framework for subscription brands launched by MTM

Finance Leisure & Arts News Technology Telecoms Travel UK

UK – Insight and strategy business MTM has released a framework for subscription and digital services brands, focused on acquisition and retention of customers.

Caroline Wren

The Heart framework offers quantitative insights and highlights top performing brands across eight industry categories: finance, travel, gaming, food, video on-demand, sports, telecommunications and music.

It uses structural equation modelling and regression analysis to calculate brand strength and brand experience drivers, including integrity, value and innovation.

The framework offers a barometer of overall brand health and benchmarks brand, acquisition and retention performance.

For example, the framework highlights the travel technology sector as a top-performing category in terms of brand health, based on an understanding of customers’ needs in various travel use cases and developing experiences that meet those requirements. 

Caroline Wren, managing director at MTM (pictured), said: “Today, every brand with a subscription or membership model faces acquisition and retention challenges. While these challenges are fundamental for businesses to address, there may be a disconnect between understanding what areas to double down on and where to pull back, and how this relates to the overall health of the brand.”

MTM conducted the study involving 5,000 quantitative surveys, covering 50 brands across the eight categories. Of the participants, 50% represented current customers and the remaining 50% comprised those considering a brand or lapsed customers.

Jonathan Stone, director at MTM, said: “By assessing brand performance across brand experience drivers at various customer life stages, Heart guides brands to invest and drive return on investment strategically and efficiently.”