Custom research shares insights on findings revealed by leading subscription services, finds streaming bundles provide 22-point boost to NPS for internet service providers
Parks Associates, in partnership with Bango, today announced the new white paper “Effective Bundling: Pain Points and Expectations from Subscription Leaders,” featuring custom primary research of industry leaders across the streaming video, music, education, and productivity markets to assess the effectiveness of bundling strategies. In this research, leading executives share their best practices and strategies to maximize the returns of their partnerships and to avoid and mitigate pain points.
The research white paper draws on the results of 10 interviews with executives representing leading subscription companies across key service markets. Parks Associates consumer research finds entertainment services lead the subscription economy for US internet households:
- 89% have a streaming video service
- 32% subscribe to a streaming audio service
- 20% subscribe to a gaming service
- 16% have a gym membership
“Partnerships are increasingly driving acquisition and retention,” said Kristen Hanich, Research Director, Parks Associates. “Partnerships enhance brand awareness and market reach, reduce customer churn, and remove friction from the user sign-up process, in addition to increasing overall customer satisfaction.”
“In a short period of time, subscription bundling has graduated from just a distribution tactic to a fundamental driver of consumer engagement,” said Giles Tongue, VP Marketing, Bango. “Leaders across the subscriptions world recognize the importance of bundling at scale. It goes beyond acquisition, delivering greater consumer satisfaction, increased longevity and more profitable relationships. Bango technology helps many of these leaders capitalize on Super Bundling, building mutually successful partnerships with telcos and other bundling partners”.
Executives report that bundling and partnerships offer numerous benefits to their partners: increasing customer satisfaction as measured by net promoter score (NPS), lowering churn, and enabling companies to differentiate service offerings. In addition, the white paper highlights research finding a 22-point lift in home internet provider NPS associated with bundled streaming video subscriptions alongside home internet service. Customer NPS is highly correlated with the number of bundled services they receive from their ISPs—customer who receive six or more additional services from their provider score an average NPS of 55.
Leading executives find any bundled partnerships can be compelling. However, telcos — including both home internet and mobile providers — are referenced as a natural content fit for many service types and offerings, offering a wide reach, an already established recurring billing relationship, large marketing budgets, and the trust of consumers.
“Successful partnerships also don’t need to be one-off deals – investing in long-term integrations, particularly with telcos, may pay dividends,” Hanich said.
About Parks Associates
Parks Associates is a global research, consulting, and marketing firm with 40 years of experience delivering proprietary consumer data and industry insights for businesses. The firm produces market research reports, forecasts, surveys, and competitive business intelligence on connected consumer, small business, and commercial technologies and related business solutions. A woman-owned and woman-led company, Parks Associates is a trusted partner and advisor to executives, providing custom research, strategic consulting, and forward-looking analysis across smart home, small business, and commercial markets, including security, broadband, entertainment, energy, multifamily, smart buildings, connected health, and emerging AI-driven technologies.
Parks Associates supports industry growth through proprietary research, consulting, and executive networking and convenes thousands of leaders each year through its flagship conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. Learn more at https://www.parksassociates.com.
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