Tuesday, June 7, 2011

Verizon Personalizes Broadband, Video Packages


With a maturing market, service providers often find themselves facing different marketing challenges than in a younger, faster-growing market.

Though it has been emphasizing triple-play packages for some time, Time Warner Cable now will devote new effort to "broadband only" single-play customers, in part because most video customers seem unwilling to change providers just to get broadband services from a new provider.

Likewise, Verizon now is offering packaging with more variety for its triple-play prospects and customers as well, essentially offering end users to emphasize either broadband or video, rather than having to buy linear packages that essentially offer a "good, better, best" approach that assumes all customers value video and broadband equally.

In other words, a consumer really wanting the best broadband, but less interested in video variety, can buy a package built that way. Likewise, a consumer that wants the maximum video variety but is less concerned about broadband speed can buy that way as well.

It's hard to tell what the recurring revenue impact will be, but the customer churn should be lower. Verizon’s broadband packages increase by $5 for each 10 Mbps increase in speeds, while video packages increase by $10 as they step up from about 200 channel to nearly 400 channels.

"Choice" long has been one of the most-powerful marketing concepts. "Personalized" has likewise become key. Verizon seems to be wanting to reflect those values in its packaging.

Verizon’s Bundle Builder

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