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.
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Beyond minutes how to sell value added services to mobile customers
1. Elastic Path Software Inc.
Beyond Minutes: How to Sell Value-Added
Services to Mobile Customers
Featuring: David Chiu, Digital commerce strategist at Elastic
Path Software
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2. 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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3. Overview
• Rise of value-added services (VAS)
• Post-sale versus subscription VAS
• Integrating VAS into your offering
• VAS partnerships
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5. The changing landscape for CSPs
Traditional telco ecosystem The new “frenemies”
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6. The CSP scenario beyond 2015
Source: Forrester Research, Inc. December 2011
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7. 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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10. 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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11. 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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12. 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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13. Post-sale VAS confusion
• Not a customer? a customer? a customer?
• Not • Not • Not a customer?
• Makes sense• Makes sense• Makes sense • Makes sense
• Not a customer?
• This is useless
• Can’t do this yet
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14. Pre-sale VAS = subscription services
• Ongoing, recurring service
• Highly marketable
• Used to differentiate offering
• Moves CSPs away from being a bit pipe
• Much easier than an ecosystem play
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15. Subscription VAS is where you want to be
• Orange provides the audience,
billing, and analytics firepower
• Before: 25K subscribers
• After: 1.2M+ subscribers
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16. 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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18. Mixing post-sale and subscription VAS
• Directory listing of all services
• Mixed metaphors
• No clear CTA for any of them
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19. Mixing post-sale and subscription VAS
• No way to Subscription VAS underutilized to convert
• add VAS • Too late • Umm, now what?
• Could compel and differentiate
• Wasted as a post-sale service
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20. Subscription VAS as standalone product
• Plans
• Add-on services
• WiMP (music service)
• Unintuitive/clunky CTAs
• Text to get more information
• Link to external registration
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21. Subscription VAS as a plan add-on
• Relatively clear call-to-action
• Link exits the purchasing flow
• Could be integrated even further
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22. 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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23. Subscription VAS as the star of the show
• Fantastic value proposition
• Clear, compelling offering
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24. Creating the reason for customers to choose you
• The key value proposition
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31. Summary and takeaways
• 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
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32. Questions
For more on-demand digital commerce resources
www.elasticpath.com/resources
info@elasticpath.com
1.800.942.5282 (toll-free in North America)
www.elasticpath.com
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