In 2016, how to stay relevant and continually add value to customers is one of the top concerns of service providers globally – whether they operate within the Internet, television, cable, call or messaging markets.
In a world where OTT operators, such as Google, Microsoft, DropBox, Skype, and Apple, have led the charge on merging these markets into singular, multi-functional, customizable offerings the message to the more traditional competition is clear; innovate and diversify or die. One thing is for sure—the OTT model is not a viable business model for the service providers long-term.
The big problem for many service providers is that their failure to innovate quickly enough is actually a huge factor in driving their customers away, destroying the loyal customer bases which form the bedrock of their business. With heightened expectations driven by the large OTT operators, customers increasingly expect converged services, where they only need to engage with one provider for all their needs, as standard.
With this threat to their survival front-of-mind, the priority for any service provider today should be the expansion of their portfolio and offering to remain an attractive proposition. As customers drift towards those able to provide a better service elsewhere they must take their place as innovators across multiple markets or they’ll quickly become redundant
This might sound like a complicated process, but can actually easily be broken down into three simple factors – the ‘3R’s’ of Re-Engagement, Retention, Recirculation.
Re-Engagement: The acquisition of new customers is important, and rightly so, but so is the creation of new and attractive bundles to upsell current customers. These should expand offerings to include enticing features and encourage customers to try and buy new applications through subtle advertising.Retention: Service provider should look to reduce churn with easy to use, white-label solutions that helps retain customers. These solutions should offer a new look and feel that users will naturally adopt as well as increasing the breadth and depth of the provider’s portfolio.Recirculation: Integrating existing services, applications and directing customers to other areas of a service provider’s business leads to increased awareness. This in turn promotes better understanding of their complete portfolio, increases choice, raises ARPU and drives customer satisfaction.
There’s no excuse not to be a fast-follower anymore. As markets merge, the technology to compete is actually also more accessible than ever. For those that fail to evolve the impact will be catastrophic. Act now, using the 3R’s of Re-Engagement, Retention, and Recirculation, and face the OTT-threat face-on today.
