Consumer Analytics

Value-Added Services Boost Technical Support Subscriptions

by David Mitchel | Jun. 9, 2016

Imagine that your six-month-old laptop is misbehaving. It could be because of a malfunctioning hardware component, a virus, or some other reason. Regardless of the cause, all that you want is for your laptop to return to its normal working condition so that you can be more productive. You contact a tech support service to solve the problem and restore order.

Companies providing technical support services are all too familiar with this scenario. Many of them are able to sell subscriptions at the point of pain. Providers then upsell support subscriptions by offering the service at a low monthly rate, which allows the customer to avoid paying large upfront costs for the support request. The challenge with this sales model is that consumers will often discontinue the subscription after only a few months. To avoid losses incurred by this model, many premium support providers mandated contract terms for support subscriptions and implemented early termination fees. Others have attempted to minimize customer churn by offering regular device tune-ups and other strategies that increase customer engagement with their services. Longer subscription terms in 2015 are evidence of the effectiveness of these strategies.

David Mitchel

David Mitchel

Research Analyst

David Mitchel is part of the Parks Associates Consumer Analytics research team. He studies market and consumer trends in a number of areas, including Access & Entertainment, Connected CE, Energy Management, Connected Home Systems, Digital Media, Digital Health, and Mobile Devices.

Prior to working at Parks Associates, David spent 5 years working in a variety of marketing roles, gaining experience in a variety of industries. He earned a BA in Communication from the University of Arizona and an MBA from Thunderbird School of Global Management.

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