Bundled services and Connected Devices

Research published by Nokia shows the positive impact that value-added and bundled services have on customer behaviour and attitudes.

Value-added, bundled services and connected devices

Value-added and bundled services both have a positive impact on retention and value-added services also improve network quality perception and data usage. 44 percent of global consumers claimed to bundle at least one other service with their mobile subscription. Only 27 percent of consumers globally receive value-added services from their mobile operator.

  • Offering value-added services has a positive impact on retention – by as much as 11 percent. It also has a significantly positive impact on consumer perception of network quality (+ 55%) and their likelihood to use more than one gigabyte of mobile data each month (+15%).
  • The concept of value-added services is further evolving to include connected devices. 56 percent of consumers in mature markets and 82 percent in transition markets would be interested in controlling at least one additional device from their smartphone.
  • Consumers choose bundled services for better prices and increased convenience. Home telephone and home broadband services are the most frequently bundled services, followed by multichannel pay TV services.

Overall, the bundles are selected as they provide a better overall price, it’s easier to get all services from one company and to have the company issue a single bill for the various services. The following chart shows the types of subscriptions and the drivers for taking bundled services:

Bundled services and Connected Devices (Pic 1)

Source: 2016 Acquisition and Retention Study

The following chart shows the impact of value-added services on the subscriber:

Bundled services and Connected Devices (Pic 2)

Source: 2016 Acquisition and Retention Study

Nokia 2016 Acquisition and Retention Study
The Nokia 2016 Acquisition and Retention Study has been designed to help mobile operators understand current trends in consumer behaviour, in order to make more informed decisions when developing acquisition and retention strategies. The focus of this extensive study is to uncover the core drivers of customer retention by providing detailed and granular insights around consumer perceptions, causes of dissatisfaction and the likelihood to churn across several scenarios.