Telcos and streaming subscription merchants are capitalizing on bundling partnerships in new and unique ways. An increasing number of merchants are offering products and services for Telcos to bundle as customer offers. Sophisticated targeting of those bundles boosts customer acquisition and retention, monetizing those customers more effectively.
This series explores the market trends creating the biggest opportunities in OTT bundling, explaining the innovative technology required for merchants and Telcos to maximize the full potential.
#3 Telco’s + console hardware bundles = customer retention
- Trend: Console and gaming hardware bundles.
- Opportunity: Acquire new subscribers and keep high value subscribers for longer with enticing gaming bundles.
- Strategy: Use a solution that treats hardware and software the same and allows you to mix and match hardware and software products from multiple suppliers into a single, compelling offer.
Thanks to bundling, both Microsoft and Sony have made their gaming consoles available to millions more people. But they’ve also increased the number of subscribers to their digital gaming services, giving customers easy access to game passes. This is an important point, in the UK for example, two-thirds of game sales were reportedly digital in 2020.
In short, bundling console and gaming hardware opens-up the market to game players who otherwise couldn’t afford the initial outlay for a console, there are no additional credit checks either. This creates a wealth of potential customer additions you know will be interested in gaming subscription passes as rewards, so this comes with inbuilt reward and upgrade opportunities.
Of course, the latest games consoles are expensive purchases for consumers. You’ll need to part with a few hundred dollars to get the most basic PS5 and Xbox bundles. But this is not necessarily the case for other industries. The Fire TV Stick, for example, is tens of dollars. It’s a simple way for Telcos to find at alternative revenue stream – and a cost-effective option for consumers.
The PS5/Xbox and Fire TV Stick are just two examples. There are plenty of hardware options available – and it’s important for Telcos to see the big picture. As today’s digital-savvy generation buys more devices, bundling your services with desirable devices helps to build a strong brand which boosts customer retention.
The benefits for hardware companies aim to expand their user base should see more entering the product bundling market this year. Telcos who embrace hardware bundles add another string to their bow that has appeal to a vast market of engaged and loyal consumers. It’s a win-win.
Capture the entire opportunity….
Gaming is not just about playing online with your latest handset. Gamers today want more. Bango makes it simple to combine gaming hardware with devices and services. Reward gamers with special controllers that work with their phones and tablets. Or resell full console bundles like Xbox All Access.
To make that happen, you need a solution that treats hardware and software the same and allows you to mix and match multiple hardware and software products from multiple suppliers into a single compelling offer – without adding any extra complexity or cost. Make it simple to ship hardware like Xbox and attach customer specific licenses, like Game Pass Ultimate.
Plus, Bango is one of only two companies licensed for Xbox All Access hardware bundles and offers.
Download our guide to explore more key growth trends in subscription bundling partnerships.