VAS (Value Added Services) refers to non basic services provided to customers allowing Operators to develop another stream of revenue. According to Global Industry Analysts, Mobile VAS is expected to reach US$690 billion by 2018 – pushing operators to keep enhancing their VAS offerings.
Mobile VAS is a main source of income that no operator can ignore. It’s crucial to continuously introduce innovative VAS to attract more subscribers, reduce churn and retain market presence. This, noting that the majority of subscribers select their operators based on the value added services provided.
Successful VAS survives…
Operators integrate VAS on top of their various platforms offering a variety of services that appeal to different subscribers. This includes: Entertainment, Information, M-commerce, M-banking, and even Roaming. Some of the VAS services by Operators that survived for the past ten years and considered a major source of revenue:
Voice mail services, Missed Call Alerts, E-top up, Welcome SMS, Credit Transfer, Call conferencing, Unified messaging services, E-mail to speech (ETS), Caller Ring Back Tone (CRBT), USSD Operator Portal, Background music, etc.
Non-traditional VAS strengthen the operator’s overall offering. It offers desirable products, creates value for subscribers through content partnerships, and help create a reason for subscribers to choose the right operator for them!
How to make use of VAS to generate maximum revenue?
Offering the right VAS is all about understanding your customers!
- Capturing customers’ imagination: since each unique customer reacts differently to each proposition.
- Fostering interactivity and interests: interaction is crucial in order to better understand the customer and offer tailor-made services.
- Fulfilling unmet needs: ensure that the services provided meet the customers’ needs and satisfaction
- Developing sustainable revenue streams: offer a range of pricing models
VAS extends to M2M…
During the past two years, the consumer electronics segment dominated the cellular M2M (Machine to machine) VAS market and is expected to continue its dominance over the next four years. “Cellular M2M Value-added services market is expected to grow at an impressive CAGR of 41% through 2021” based on Technavio study.
After all, VAS is extanding to IoT by enabling network devices to exchange information and perform actions without manual human assistance.
Optimizing VAS for greater revenue is a major strategy that positively impact ARPU and the consumer’s perception of brand.
Now how are you going to integrate VAS into your offerings?
Monty Mobile is happy to assist you with your VAS optimization, please contact us for further information and inquiries.