Without question, the rise of digital economy services has had a significant impact on the business models of service providers. Adapting to the always-on digitally enhanced lifestyles of today’s consumer is by no means easy, but service providers have to monetize their offerings more effectively, reduce customer churn and find new revenue streams.
Providing a seamless customer experience that includes traditional communications services with new digital economy services is perhaps the perfect solution. And today, many service providers – especially in developed markets – have a variety of multi-play offerings around connectivity services such as phone, broadband and TV.
With digital economy services growing ever more rapidly, multi-play bundled offerings around the digital economy are also beginning to find their niche in a digital-hungry market.
Service providers look towards digital economy services in order to defend traditional revenue streams and develop new ones. Staying relevant in light of increasing competing services from over-the-top (OTT) players is also a factor; as the saying goes, if you can’t beat ’em, join ’em. Brand enhancement is a key factor for service providers offering OTT-based digital economy services; as one branding guru put it, it’s an imperative for success.
Adopting the correct strategy for success
Service providers typically adopt one of three strategies in approaching digital economy services:
- a brand enhancement strategy focused on existing customers.
- a regional strategy that leverages geographical network coverage to sell to both customers and non-customers.
- a global strategy that seeks to offer coverage well beyond the service providers’ network through partnerships.
A key advantage for service providers is their existing base of customer relationships; this can be crucial, taking into consideration the digital economy’s need for new business models, partnerships and supporting technology.
So what should I do?
While service providers are pursuing these digital economy service models, they’re also investing in extending the support for existing multi-play services. A smart move, as there will almost certainly be a convergence of these services in the future. Adopting the conventional method of supporting these services through specific use-case solutions will only lead to complexities later. Investing in support for multi-play digital economy services will help reduce costs and ease complexity in the long term.
For more information on overcoming the challenges faced by the ever-developing digital economy, check out our free white paper here.