FOMO: Fear of Missing Out on Digital Service Revenues
There are several American consumer brands whose recent ads focused on FOMO (fear of missing out). More than just an abbreviation you might see on Twitter, I suspect it’s a global phenomenon that’s spreading quickly, especially among cable companies and mobile operators, content producers, broadcasters, and movie studios. With content monetization models in flux, you’d be crazy NOT to fear missing out on the critical incremental revenues to be gained by exploring skinnier bundles, new streaming channels or direct-to-consumer offerings. Especially as these provide a means to retain customers that might be flirting with other service providers.
CSG International and Pipeline Market Research recently polled approximately 100 CSPs worldwide about the opportunities and challenges of offering digital services such as movies, music, M2M communications and more to find out the state of their Transformation to Digital. Not surprisingly, the majority (52%) said that most of their service offerings are digital today and that completing a full business transformation to becoming a digital service provider (DSP) had significant potential to increase their top-line revenue – and 28% ranked it their number one revenue growth area. But respondents know digital isn’t a sure path to boosting revenues.
Since consumers have no shortage of choice when it comes to purchasing digital content, particularly movies and other forms of entertainment, survey respondents expressed that their focus is on aligning very large and complex arrays of systems, processes and technologies to develop compelling offers for digitally-savvy consumers. But, multiscreen content portability remains a challenge today, and 69% of survey respondents plan to invest in creating a differentiated multi-device experience.
So how can you channel your FOMO appropriately to produce revenue?
- Start today. Consumers are still figuring out what blend of channels works best for them. The average consumer has some mix of broadcast, OTT subscription, etc. Don’t get hung up on first mover advantage, there’s plenty of revenue and profit up for grabs if you get in the ring and fight for your share.
- Support choice. From business models (subscription, transactional, streaming, etc.) to device (TV, PC, tablet, phone) to payment methods (credit, gift cards, loyalty programs, etc.) – every time you have to tell a consumer you don’t accept or do “x” you’re turning away revenue.
- Get closer. Successfully building long-term relationships means getting to know someone, and this includes selling to the customers you already have. Some of the greatest opportunities exist in expanding relationships. Blend experiences across physical and digital, or ensure that if consumers are used to accessing content in one fashion that you don’t disrupt, but rather, expand that relationship. Arms-length relationships won’t work if you want to grow revenues and create lifetime value. Explore personalization and direct-to-consumer offers.
- Don’t run your organization ragged and your bottom-line below ground trying to upskill and chase every device or feature that hits the market. You’ve got partners who can do that. Leverage them – leverage us!
Want to learn more about how CSG is helping cable, carriers, and OTT providers overcome their FOMO and transform digitally? Find out more about digital transformation with CSG.