It is getting harder and harder for Acquirers such as telecom operators, broadband providers, energy companies and insurance firms to stay relevant for its customers. Once the customer is onboard and has signed up on a payment plan, is there really no need for the customer to think of them anymore – unless something goes wrong with the service or they get a better offer from a competitor.
All these Acquirers need to keep their customers engaged inorder to stay relevant and make sure they can reinforce their value and upsell to increase their margins. However, this is becoming challenging, especially since more or less all sectors from telecom to energy to insurance are going through a price war on their core business and customers are becoming harder to retain.
That leaves the question – what can Acquires do to stay relevant and re-engage its customers?
Historically telecom operators and broadband providers have been the most experimental in this area and successfully retained their customers by offering value added service (VAD). A decade ago it was through offering additional data packages or extra SMS and phone call minutes to a fixed rate. However, over time this kind of VADs has decreased in interest and customers generally perceive little value and excitement to these kinds of offers.
Recent studies done by Averto and West Monroe poll showed that the average household has 10 subscriptions and on average spends $273 per month on these subscriptions. Furthermore, according to Deloittes latest Digital Media Trend report it is clear that customers today don’t just have multiple subscriptions, they are also very volatile in their behavior. According to the study, 37% of US adults canceled a subscription service in the past six months and all except 4% of those who canceled added a new one (see a more granular breakdown below in Figure 1) .
This volatile behavior amongst the customers shows how important it is for Acquirers to have an extensive product portfolio inorder to retain the customers and offer a more cost-efficient way for them to discover, sign up, and manage their subscription portfolio.
However, even though many Acquires today have extended their product portfolio with a variety of VoD services, will that not be enough inorder to stay competitive. What will determine which Acquirer that wins the customers attention and loyalty is the ones with the widest product portfolio, creates the best offers, and the simplest experience to manage all the subscriptions. The data shows that customers with additional third-party products added to their accounts stay longer and churn less.
Acquirers in general must broaden the spectrum of services they offer and test new interesting verticals other than VoD services. Bundler enables all kinds of Acquirers to widen and deliver an exciting variety of products and services to their customers quickly, easily and at scale.
Don’t hesitate to contact us to find out more!