Beyond minutes how to sell value added services to mobile customers

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

http://www.elasticpath.com/webinar/telecom-value-added-services





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

http://www.getelastic.com

http://www.elasticpath.com/resources


Overview

• Rise of value-added services (VAS)

• Post-sale versus subscription VAS

• Integrating VAS into your offering

• VAS partnerships


Rise of value-added services (VAS)


The changing landscape for CSPs

Traditional telco ecosystem The new “frenemies”


The CSP scenario beyond 2015

Source: Forrester Research, Inc. December 2011


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


Telco opportunities to 2015

Source: Gartner, Inc. September 2011


Device and plan selection

Post-sale versus subscription VAS


Post-sale VAS are apps and one-off purchases

• Need to be a subscriber first • Useless for non-customers • Appropriately segregated


Post-sale VAS are apps and one-off purchases

• Need to be a subscriber first • Useless for non-customers • Appropriately segregated


Post-sale VAS characteristics

• Minimal impact on acquisition • Post-sale is an ecosystem play • Beyond the scope of this webinar • Understand their characteristics


Post-sale VAS confusion

• Not a customer? • Makes sense




• Not a customer? • This is useless • Can’t do this yet


• 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


• Orange provides the audience, billing, and analytics firepower

• Before: 25K subscribers • After: 1.2M+ subscribers

Subscription VAS is where you want to be


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


Integrating VAS into your offerings


• Directory listing of all services • Mixed metaphors • No clear CTA for any of them

Mixing post-sale and subscription VAS


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?


• Plans

• Add-on services

• WiMP (music service)

• Unintuitive/clunky CTAs • Text to get more information • Link to external registration

Subscription VAS as standalone product


• Relatively clear call-to-action • Link exits the purchasing flow • Could be integrated even further

Subscription VAS as a plan add-on


Subscription VAS as a plan feature

• The plan itself now has a USP • No additional thought required • CSP is part of content value chain


• Fantastic value proposition

• Clear, compelling offering

Subscription VAS as the star of the show


• The key value proposition

Creating the reason for customers to choose you


VAS partnerships


Integrated CSPs have an inherent advantage


White-label subscription VAS offering


Co-branded subscription VAS offering






• 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


Questions

For more on-demand digital commerce resources

www.elasticpath.com/resources

[email protected]

1.800.942.5282 (toll-free in North America)

www.elasticpath.com

http://www.elasticpath.com/resources

Beyond minutes how to sell value added services to mobile customers

Technology