Beyond minutes how to sell value added services to mobile customers


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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. 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 SoftwareElastic Path™
  2. 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 • For more on-demand digital commerce resources Path™
  3. 3. Overview • Rise of value-added services (VAS) • Post-sale versus subscription VAS • Integrating VAS into your offering • VAS partnershipsElastic Path™
  4. 4. Rise of value-added services (VAS)Elastic Path™
  5. 5. The changing landscape for CSPs Traditional telco ecosystem The new “frenemies”Elastic Path™
  6. 6. The CSP scenario beyond 2015 Source: Forrester Research, Inc. December 2011Elastic Path™
  7. 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 youElastic Path™
  8. 8. Telco opportunities to 2015 Source: Gartner, Inc. September 2011Elastic Path™
  9. 9. Post-sale versus subscription VASDevice and plan selectionElastic Path™
  10. 10. Post-sale VAS are apps and one-off purchases • Need to be a subscriber first • Useless for non-customers • Appropriately segregatedElastic Path™
  11. 11. Post-sale VAS are apps and one-off purchases • Need to be a subscriber first • Useless for non-customers • Appropriately segregatedElastic Path™
  12. 12. Post-sale VAS characteristics • Minimal impact on acquisition • Post-sale is an ecosystem play • Beyond the scope of this webinar • Understand their characteristicsElastic Path™
  13. 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 yetElastic Path™
  14. 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 playElastic Path™
  15. 15. Subscription VAS is where you want to be • Orange provides the audience, billing, and analytics firepower • Before: 25K subscribers • After: 1.2M+ subscribersElastic Path™
  16. 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 partnersElastic Path™
  17. 17. Integrating VAS into your offeringsElastic Path™
  18. 18. Mixing post-sale and subscription VAS • Directory listing of all services • Mixed metaphors • No clear CTA for any of themElastic Path™
  19. 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 serviceElastic Path™
  20. 20. Subscription VAS as standalone product • Plans • Add-on services • WiMP (music service) • Unintuitive/clunky CTAs • Text to get more information • Link to external registrationElastic Path™
  21. 21. Subscription VAS as a plan add-on • Relatively clear call-to-action • Link exits the purchasing flow • Could be integrated even furtherElastic Path™
  22. 22. Subscription VAS as a plan feature • The plan itself now has a USP • No additional thought required • CSP is part of content value chainElastic Path™
  23. 23. Subscription VAS as the star of the show • Fantastic value proposition • Clear, compelling offeringElastic Path™
  24. 24. Creating the reason for customers to choose you • The key value propositionElastic Path™
  25. 25. VAS partnershipsElastic Path™
  26. 26. Integrated CSPs have an inherent advantageElastic Path™
  27. 27. White-label subscription VAS offeringElastic Path™
  28. 28. Co-branded subscription VAS offeringElastic Path™
  29. 29. Co-branded subscription VAS offeringElastic Path™
  30. 30. Co-branded subscription VAS offeringElastic Path™
  31. 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 brandsElastic Path™
  32. 32. Questions For more on-demand digital commerce resources 1.800.942.5282 (toll-free in North America) www.elasticpath.comElastic Path™