CSG Bundling Study: Discount, Customize

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A survey commissioned by CSG Systems Inc. revealed that consumers would be more open to bundled packages from telecommunications-service companies if they include price discounts for multiple services and packages tailored to their personal interests.

The survey of 1,000 Americans found that fewer than one-third purchase all of their telecommunications services from one provider.

More than 67% said providing a discount on bundled services was the single most important factor in purchasing multiple services from a telecommunications provider. In addition, a majority also said “a better bundled package of services tailored to personal interests” would be an important step for a service provider to enhance customer service.

“Understanding our client’s customer and their needs is a top priority for us,” CSG vice president of strategic initiatives Steve Borelli said in a prepared statement. “We’re trying to improve the end-customer experience. Consumers want a better bundle and tailoring services to their individual preferences.”

Exactly how much of a discount consumers want was not probed in the survey, but Borelli said clients have found success with discounts of 5%-15%.

In some cases, steeper temporary discounts added to consumer resentment, he added. Service providers may want to pursue lower discounts, but ongoing rewards, as opposed to making big price slashes upfront, he said.

Packaging specialized content also appealed to consumers, such as providing Internet music packages for customers who watched music programming on cable. Sports is another natural TV-to-PC content tie-in, he said.

The survey found that 42% of subscribers were in two-product bundles, while 18% were taking three products and 10% taking four products (cable, high-speed data, landline phone and wireless phone) from a single provider.

Applications also could help to glue customers to a single service provider, Borelli said, such as caller ID on the TV. “Little things like that go a long way in the consumer world,” he added.

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