Creating End-User Stickiness
An Opportunity for Broadband Providers
Customers want more, expect more and demand more
And this isn’t a bad thing for service providers. Meeting the needs of customers directly correlates to customer satisfaction. And a Satisfied customer doesn’t leave.
• A highly satisfied broadband subscriber is 46% LESS LIKELY to churn from current provider, where as a highly dissatisfied customer is 384% MORE LIKELY to leave their current provider.1
1. 2009 Parks Associates Rural Broadband Services and the Digital Home
Service Provider Strategic Considerations
Customer Retention
Customer Acquisition
ARPU Growth
Value-Added Services
Entertainment • Community Portal
Lifestyle • Spam & Virus
Protection • Computer Protection • Online Backup • Password
Management • Archiving
Premium Tech Support • Clever Assist • Total Tech • 24x7 Support
• Community Portal Protection
• Computer Protection • Online Backup
Protection Computer Protection
• Online Backup •
Online Backup • Online Backup Online Backup • Password
Online Backup
Management • Archiving
• Password Password
• Clever Assist Clever Assist • Total Tech Total Tech • 24x7 Support
Total Tech Total Tech
SecurityCoverage – Partner for ANPI & for You
Deb Dodson & Rocky Chipokas
Partner Managers for SecurityCoverage
Market Research Indicates… Market Research Indicates…
Customers want • Value-adds from
their existing relationships
• World class support
• Issues solved instantly
• Issues solved on their schedule
In a study conducted by Parks Associates, interest in value-added services was ranked in the following order.
1. Premium technical support services
2. Online file backup service
3. Broadband home security service
4. Anti-virus/Internet protection service
5. Home monitoring service
6. Extra warranties/replacement insurance for CE
7. Premium entertainment services
8. Residential gateway
9. Parental control features
SecurityCoverage currently offers five out of nine of these services. (Highlighted in blue)
Interest in Value-Added Services
A 2010 study conducted by Parks Associates showed premium tech support improves customer satisfaction
Premium Support and Customer Satisfaction
1%
4%
18%
12%
34%
23%
3%
8%
9%
15%
28%
30%
0% 10% 20% 30% 40%
Ship computer to repair facility
Purchase software
Drop-off computer to a repair facility
Telephone support (no remote capabilities)
On-site/in-home service
Telephone call center including remote diagnostics and troubleshooting
Percentage (%)
What PC Support Services are Most Desired?(Among consumers who would consider using
professional tech support for a home computer problem)
2009 (n=2,063, ±2%) 2006 (n=727, ±4%)
Sources: Managing the Digital Home: Installation and Support Services; Customer Support in the Digital Home © 2010 Parks Associates
What PC Support Services are Most Desired?
Premium Tech Support:
$6.2B business (U.S.) by 2014
Virtual repair on
the increase
On-site and in-home on the decline
Consumers See Value in Remote Services
Customer Lifecycle
• Benefits of managed PC security platform – Increased take rates through bundling the product with DSL
Raised average revenue per user for DSL
– Decreased tech support calls by close to 10%
– Customer satisfaction survey revealed better customer satisfaction rates since implementing managed PC security
• Lessons learned – Bundling works
– Requires concerted marketing effort
Case Study #1
Case Study #1
• Began using managed PC security platform in late 2007
– The promotion was to launch the SecureIT product and continue to drive take rates on SecureIT Plus
• Offered 30 days free for SecureIT
– Promotion ran the months of June and July
– Promotion campaign included
Mass e-mail announcement
Newspaper ads
Bill inserts
Flyers
Case Study #2
June brought in 149 licenses; 79 SecureIT and 70 SecureIT Plus. The prior 90-day average on the SecureIT Plus was 42!
“We are quite pleased with the success of our promotion. This campaign drove our SecureIT licenses by more than tripling our 90-day average take rate of 42. The new SecureIT base
offering was a major factor and reached a market segment we had not touched before and tripled our overall sales rates.”
Monthly SecureIT Additions
Case Study #2
• Madison concerns/issues
– Knowledge/experience - Vendor had trouble keeping up with their growth and expanding services
– Lack of visibility - Madison had no real-time visibility to cases and call reporting was poor
– Timing/transition impact – Madison was not proactively looking to make a change and was concerned about freeing up resources on their end to assist
• How it looks today with SecurityCoverage
– Daily detailed call reporting and real-time access to cases via the Partner Portal
– Committed management team that delivers on what they promise: 83% service level, 43 second average speed of answer with < 5% abandons projected to date
– Transition went smoothly; the technical team understood their business with little investment to get them started
– Enhanced service; customers have noticed a change (for the better)!
Case Study #3
15
Enhanced service; customers have noticed a change (for the better)!
• Dynamic local and national news content helped drive traffic to their Web site
• Created prime advertising space
– For their products and services
– For their bundles and value adds
– Other local businesses looking for quality ad placement
– Created pages for each of their core products
• Complete customer care all within the framework of their Web site
“The SecurityCoverage Customer Portal (Premium Portal) has allowed us to provide our users with the exact content we have been looking to provide. The transition from our previous site was an easy process and the staff at
SecurityCoverage was instrumental in helping us with a smooth implementation.”
Mike Chavez, IT Department; Volcano Communications
Case Study #4
16
Mike Chavez, IT Department; Volcano Communications
How do you say YES to solving these customer issues? • Say “YES” through partnering with ANPI &
SecurityCoverage – No start-up costs – No ongoing costs – A new revenue stream for what was out of scope – Offer solutions to your customers’ problems
With Everything Else Going On….
Products and Services Web-based products and services, designed to drive revenue and promote customer loyalty.
Your company’s one-stop personalized homepage for the ultimate customer experience
24x7x365 support for all your subscriber support needs
Provide remote desktop assistance to your customers with no infrastructure needed
Simple, secure and automatic online data backup
Virtual “Geek Squad-like” services from the comfort of home
Fully managed Internet security software made simple
Convenient and secure password management
Concluding Thoughts
• Broadband services alone are highly commoditized.
• Selling Faster for Less is a race to the bottom
• Majority of consumers don’t know their broadband speeds. 1
• Focus on value-added services, bundles that combine these services with your core services.
• Satisfied customers don’t leave
• ARPU, ARPU, ARPU
1. 2009 Parks Associates Rural Broadband Services and the Digital Home
Parting Gifts for Attendees
1. Recording of this webinar available for download
2. The opportunity to register for product-specific demos with access to revenue models for products bundles
3. Easy link to Parks Associates white paper that was the inspiration for this webinar.