VAS (Value Added Services) refers to non-core services that are provided to customers apart from basic services, allowing mobile operators to develop another stream of revenue. According to Global Industry Analysts, the global market for Mobile Value Added Services (MVAS) has been expected to reach US$690 billion by 2018 - and this has pushed operators to keep enhancing their VAS offerings.
Mobile VAS is a main source of income that no operator can ignore. So it’s crucial for all operators to continuously introduce innovative value added services in order to attract more subscribers, reduce churn and retain their market presence– noting that the majority of subscribers select their operators based on the value added services provided.
Help create a reason for subscribers to choose the right operator for them!
Successful VAS survives…
Mobile operators integrate VAS on top of their various platforms to offer a wide variety of services that appeal to different categories of subscribers, including: Entertainment, Information, M-commerce, M-banking, and even Roaming.
Out of the substantial VAS offered by operators, some survived the past tens of years and are still considered a major source of revenue for many operators nowadays; these include, but are not limited to, 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.
Nontraditional VAS strengthen the operator’s overall offering with desirable products, create value for subscribers through content partnerships, and thus 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 it’s expected to continue its dominance over the next four years. Based on Technavio study, “Cellular M2M Value-added services market is expected to grow at an impressive CAGR of 41% through 2021”. After all, VAS is extending to M2M, the IoT (Internet of Things) technology that enables networked devices to exchange information and perform actions without the manual assistance of humans.
To sum it all up, optimizing Value Added Services for greater revenue generation is a major strategy that positively impact acquisition, ARPU and the consumer’s perception of the 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.