beyond minutes how to sell value added services to mobile customers
DESCRIPTION
As basic connectivity becomes a commodity, telcos are turning to a vast array of services−from movies and music to mobile app stores−in an effort to differentiate themselves and boost their margins. But designing and operating a content ecosystem is entirely different from selling devices and plans. In this webinar, we discuss how communication service providers can successfully integrate the two into a compelling and coherent customer experience.TRANSCRIPT
Elastic Path™ Elastic Path™
Beyond Minutes: How to Sell Value-Added
Services to Mobile Customers
Elastic Path Software Inc.
Featuring: David Chiu, Digital commerce strategist at Elastic
Path Software
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Introducing Elastic Path Software
Digital Commerce for Innovators
• We help the world’s biggest brands sell digital goods and services
• We provide a flexible digital commerce platform and expertise in commerce
strategy and implementation
• #1 ecommerce blog www.getelastic.com
• For more on-demand digital commerce resources
www.elasticpath.com/resources
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Overview
• Rise of value-added services (VAS)
• Post-sale versus subscription VAS
• Integrating VAS into your offering
• VAS partnerships
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Rise of value-added services (VAS)
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The changing landscape for CSPs
Traditional telco ecosystem The new “frenemies”
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The CSP scenario beyond 2015
Source: Forrester Research, Inc. December 2011
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The business challenge
• Flat growth due to market maturity and saturation
• Commoditization of traditional services
• Erosion of revenue, margin, brand differentiation
How nontraditional VAS can help
• Generate supplementary revenue streams
• Strengthen overall offering with desirable products
• Create value for subscribers through content partnerships
• Entrench CSP strengths into the content value chain
• Help create a reason for consumers to choose you
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Telco opportunities to 2015
Source: Gartner, Inc. September 2011
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Device and plan selection
Post-sale versus subscription VAS
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Post-sale VAS are apps and one-off purchases
• Need to be a subscriber first • Useless for non-customers • Appropriately segregated
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Post-sale VAS are apps and one-off purchases
• Need to be a subscriber first • Useless for non-customers • Appropriately segregated
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Post-sale VAS characteristics
• Minimal impact on acquisition • Post-sale is an ecosystem play • Beyond the scope of this webinar • Understand their characteristics
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Post-sale VAS confusion
• Not a customer? • Makes sense
• Not a customer? • Makes sense
• Not a customer? • Makes sense
• Not a customer? • Makes sense
• Not a customer? • This is useless • Can’t do this yet
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• Ongoing, recurring service • Highly marketable • Used to differentiate offering • Moves CSPs away from being a bit pipe • Much easier than an ecosystem play
Pre-sale VAS = subscription services
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• Orange provides the audience, billing, and analytics firepower
• Before: 25K subscribers • After: 1.2M+ subscribers
Subscription VAS is where you want to be
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Key differences between post-sale and subscription VAS
• Post-sale VAS has a low and declining impact on acquisition with the preeminence of full-featured walled garden ecosystems (Amazon, Apple, Google)
• Pre-sale VAS in the form of subscription services are compelling products that can:
– Be a powerful differentiator for commodity plans
– Build consumer awareness and trust for CSP brands
– Positively affect both conversion and ARPU
– Be relatively easy to deploy with the right partners
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Integrating VAS into your offerings
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• Directory listing of all services • Mixed metaphors • No clear CTA for any of them
Mixing post-sale and subscription VAS
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Mixing post-sale and subscription VAS
• Subscription VAS underutilized • Could compel and differentiate • Wasted as a post-sale service
• No way to add VAS • Too late to convert • Umm, now what?
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• Plans
• Add-on services
• WiMP (music service)
• Unintuitive/clunky CTAs • Text to get more information • Link to external registration
Subscription VAS as standalone product
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• Relatively clear call-to-action • Link exits the purchasing flow • Could be integrated even further
Subscription VAS as a plan add-on
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Subscription VAS as a plan feature
• The plan itself now has a USP • No additional thought required • CSP is part of content value chain
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• Fantastic value proposition
• Clear, compelling offering
Subscription VAS as the star of the show
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• The key value proposition
Creating the reason for customers to choose you
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VAS partnerships
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Integrated CSPs have an inherent advantage
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White-label subscription VAS offering
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Co-branded subscription VAS offering
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Co-branded subscription VAS offering
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Co-branded subscription VAS offering
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• Subscription services like streaming music are becoming the format of choice for consumers
• Plays perfectly into carriers’ traditional strengths in recurring billing, analytics, and customer care
• Subscription VAS are easier to implement than post-sale ecosystems, which are dominated by the Big 3
• Be selective and aggressive integrating subscription VAS directly into your service offerings – pre-sale
• Subscription VAS positively impacts acquisition, ARPU, and consumer perception of CSP brands
Summary and takeaways
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Questions
For more on-demand digital commerce resources
www.elasticpath.com/resources
1.800.942.5282 (toll-free in North America)
www.elasticpath.com