Bundling Helps Increase Customer Satisfaction and Reduce Churn

It's going to be a great week at ISC West, where Ashton Gambrell and I are walking the floor to check out what's going on in the residential and commercial security industry. I love this research project with Calix where we highlight the role of bundled services for the business and the consumer experience. The security industry should really take a look at what the broadband and telco market does with their #services . There is lots to learn. If you in Vegas this week - we would love to check out what you are working on.

Bundling services serves a variety of purposes for internet service providers. In addition to generating incremental revenue, bundling helps increase customer satisfaction and reduce churn. Many broadband service providers are moving to offer new bundled services building upon their core connectivity offerings. These services are being made available to subscribers as part of tiered service package offerings or available on an a la carte basis where customers pay an additional monthly fee.

Parks Associates research has found that remote workers are more likely to pay for additional services provided to their homes. This has held true for nearly every tested service, with the exception of file storage. Services that directly impact productivity show the largest pronounced differences in adoption between remote workers and other households.

Value-added services, sometimes referred to as managed services, are also having a sharp impact on customer satisfaction, as measured by net promoter scores (NPS). NPS is a measure of customer willingness to recommend products and services, with totaled scores ranging from -100 to 100. The higher the score, the more likely the customer is to recommend the service, with negative scores indicating that most customers are unhappy. As seen in the graphic below, the number of services adopted has a powerful correlation with higher NPS.

Many of these new services are being enabled through residential routers and gateways. These devices are serving as the platforms for new application distribution models, where services are pre-integrated in order to speed time-to-market. With these new services, BSPs can generate incremental revenues, reduce the need for calls to support, ensure fewer truck rolls, and acquire detailed analytics and insight into network performance and operations.

Thank you to 凯易讯 for their support of this great project. Read the full white paper, Revenue at the Edge: Wi-Fi Managed Services and the Subscriber Experience . Thank you for your continued support of our work. We appreciate you.