Cover Story created themselves , or in partnership with others . And then they will change it , regularly , using self-service .”
“ This will result in an increasingly complicated dynamic product and bundle set-up for billing-engines and invoice layouts . For example , some customers may have three services included , others five , and some may have dozens . At the same time , pricing and discounting will become increasingly personalised . For example , at a very simple level , when a CSP detects that a customer is struggling to get a good WiFi signal in their home office , they could offer a new router along with WiFi repeaters that support dynamic software-based optimisation ( offered with a 10 per cent loyalty discount ). What we can be sure of is that future wholesale relationships will become more dynamic and responsive and incorporate many more partners . As a result , integration needs to take an instant , ‘ plug and play ’ approach , rather than requiring a lengthy five-month project .
“ Though ever bigger bundles have become a staple for the industry , there is now more potential than ever to introduce creativity around service pricing and usage-based charging models , particularly for the B2B sector ,” notes Smith . “ But this means CSPs doing more than just providing network access , they need to provide solutions that deliver additional value to their customers , whether that be for smart homes , online gaming or industrial IoT . We ’ ve already seen other businesses move to more value-based consumption models – for example WhatsApp Business now charges based on completed conversations , not individual messages . Now is the time for CSPs to start using the new tools at their disposal , such as 5G network slicing and QoS , to align their pricing models with the actual value delivered ,” he advises . WEAKNESSES . “ Bundles are meant to feel like good value but can feel like a rip-off if most of the content doesn ’ t appeal to you ,” warns Cottam . “ And the problem is , bundles rarely fit any customer ’ s needs precisely . Bundles increasingly seem as irrelevant to customers as linear TV channels . The current approach has a range of weaknesses including : A confusing and complex range of pricing options ; Bundles that are too generic and don ’ t fit an individual customer ’ s needs ; The customer is given ( too many ) options as well as the job of deciding which is best ; Contracts , prices and bundles are too static .” “ In the future , CSPs will combine the ability to allow customers to self-bundle and change their bundles more dynamically with the capability to guide them through the buying process – simplifying their options and using AI to find the best matches to their needs ” she predicts . “ The aim is to remove the barriers to buying . Likewise , CSPs will refocus on customer lifetime value rather than targeting customer acquisition . At the moment customers are frustrated by the lack of logic that rewards new customers with better deals than loyal ones – driving churn and encouraging disloyalty . There ’ s ample
evidence from other industries that satisfied and engaged customers are prepared to pay
more , so the dial will turn from promotional offers at the point of acquisition to midlifecycle offers that maintain loyalty and satisfaction .” “ Successful bundling means customers have to see the extra service as attractive , either because it is convenient to have a single company to deal with , or it is cheaper for them to add an extra service with you versus going to a separate company ,” advises Giere . “ What changes is the vast amount of potential services that can come out of 5G . It will take experimentation and a ‘ fail fast ’ product introduction methodology to hit upon the right additional services to create a winning proposition .” CAUTION . “ It is tempting for service providers to join the race to the bottom , focusing on speed and price ,” notes van den
Broek . “ However , we would urge caution with this approach and instead focus on what new services they can provide to customers who are willing to pay for the best experience . Our own data has shown that providers can charge up to $ 15 per month for a bundle that includes Plume ’ s additional services . At the same time , Plume allows providers to reduce their operating costs by leveraging insight through our back-end tools which can reduce churn by up to 30 per cent . Speed to the home does not guarantee a great experience in the home – for that providers need to pivot to intelligent , cloud-based platforms with leveraged data to more efficiently manage home networks .”
“ CSPs have to react faster to their customers ’ constantly changing demands , so the need to have a more flexible and agile billing tool has become paramount ,” stresses Magfhloinn . “ The focus has to be all about facilitating a quicker G0 T0 Market for new bundles / deals , whilst also reducing inbound customer care calls , as the digital bill pushes out personalised notifications to address all queries relating to the new pricing on the bill .”
“ One key advantage that CSPs have over SVoD players is their ability to monitor and manage end-to-end service quality and provide support to their customers ,” observes Subtonomy ’ s Edwall . “ Mass homeworking in 2020-21 not only demonstrated the viability of more distributed working models , but also educated customers about the value of a quality network proposition , as well as the importance of being able to diagnose and fix any problems quickly . But speed is imperative , not only to reduce the cost of serving each customer but because customers are increasingly impatient to get help . According to Subtonomy ’ s research , for example , eight out of 10 customers are now unwilling to wait longer than 10 minutes for support . More granular , real-time insight into the impact of the network , applications and devices on experience , like that provided by the Subtonomy platform , not only enables CSPs to become more responsible and proactive but also to provide tiered levels of support within their service offerings .” BLOCKERS . Given that blockers to increasing revenue exist , how are these overcome ? “ Many customers of operators are now faced with very complex and confusing packages ,” says Chomoko . “ The product
“ The next play will be fully-convergent services for the household .” - Andreas Jorbeck , Subtonomy management team within operators are also faced with the complexity of managing so many SKUs [ Stock Keeping Units ] - the product catalogue has exploded .
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