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Avoid data becoming a commodity: 5 ways to move to value based offers

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Marketing and selling data only by MB or GB provides only one differentiator—price. This can lead to a ‘my GB is cheaper than your GB’ pricing strategy, which is a sure fire way to create a commodity product.
Avoid data becoming a commodity: 5 ways to move to value based offers

Marketing and selling data only by MB or GB provides only one differentiator—price. This can lead to a ‘my GB is cheaper than your GB’ pricing strategy, which is a sure fire way to create a commodity product. Rather than go down the route of commoditizing data, many operators are developing value based products and services that are supported with value based pricing. Providing value based services enables operators to price based on the value delivered — which is often described as the optimum pricing strategy as it enables much more flexible pricing that suits both customers and operators alike. In order to help move to value based services, operators can look to the concept of Dynamic Services. This is a concept built upon real-time understanding of customer behavior and developing offers and services that can be sold as add-ons and value added services to augment a basic data centric offer. At a high level the five solutions presented below can be used to deliver Dynamic Services to consumers. 1. Start with Simple Pricing for Basic Bundles –this encourages data adoption and usage. Operators are trying innovative ways to encourage data adoption – ranging from app specific services passes (e.g. facebook, twitter passes) for low monthly costs, and removing the uncertainty of high data costs by real-time communication on data usage and costs. 2. Provide Dynamic Offers Direct to the Device – these provide the foundation for value based pricing. They are real-time, personalized offers delivered direct to the customer’s device which provide an effective method to upsell relevant offers. As simple example is upselling a 1GB data block when a customer is approaching their monthly data limit. 3. Use Policy Controls to Manage Product Features – this is used to provide the ability to control product features. An example of a dynamic service enabled by policy control is upselling additional speed— e.g. upselling data block at high speed, when a customer has reached their limit and speed is throttled, and / or selling speed boosts for specific services (e.g. hi def video). 4. Offer OTT and Value Added Services Bundles - Selling OTT and value added services helps the operator to add value based elements into their offers, delivers a better offer to the customer, (e.g. buy content without using data allocation) and also the content provider gets a partnership that can market the content offers direct to their customer base. 5. Take the Uncertainty out of Data Roaming – Many operators are starting to stimulate data roaming by offering service passes. These passes enable a customer to buy a volume of roaming data for use over a pre-defined time (e.g. 1 day, 1 week) thus providing clear usage and cost transparency. Offering Dynamic Services to consumers can help operators differentiate data by enabling value based services. Starting from simple base plans, operators can use real-time business intelligence to build on these to create and provide personalized, flexible value based offers, which contain a range of add-ons and value added services. To find our more, please read our Guide titled "Dynamic Services: Top 5 Solutions to Enable Delivery of Value Based Services to Consumers"

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Blog Author

Martin Morgan
Vice President of Marketing

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