7 JAN 2021

Do-it-yourself or bundling-as-a-service?

POSTED UNDER Bundling Digital Goods Mobile Marketing Streaming
image of Mattias Liivak

Mattias Liivak

Head of Marketing & PR, Fortumo

image for Do-it-yourself or bundling-as-a-service?

Bundling allows telcos to use attractive digital content offers for user acquisition, retention and upselling. Digital content service providers in turn get access and user base growth through telco marketing capabilities. Great value to both sides with one major issue. Bundle partnership launches are painfully slow.

Bundle partnerships between telcos and service providers can take several years to set up. Digital streaming services are able to reach 60 million subscribers in one year from scratch. This means the launches are often too late for telcos, especially when a competitor has been able to secure and launch their deal earlier.

Bundling deals move slowly due of two reasons: commercial negotiations and technical complexities. The negotiations around business requirements are unique between each partner and not much can be done to accelerate them. But the technical delivery of bundle partnerships often takes as long as agreeing on the commercials – and that can be improved. 

Do-it-yourself bundling overloads the team unnecessarily

On the technical level, bundling partnerships are often set up directly between telcos and merchants. In these cases, building and developing the in-house platforms and setting up each bundle partnership needs to be done by a dedicated team. The goal of building solutions in-house should be to maximize a distinct competitive advantage. But if each integration and launch still starts from scratch, does it really drive home an advantage? 

Managing bundle partnerships in-house also incurs an opportunity cost. The planning and strategy meetings, creation of optimized user journeys, testing, consultations, monitoring, new feature developments and staff-hours accumulate quickly for every bundle project. This means the best minds in the team are not able to work on key revenue and service innovations and business critical challenges, such as expanding the partner portfolio.

Once the contract is signed, bundling launches should technically be ready at the flick of a switch. A good parallel for the past and future of bundling is cloud hosting. When a company needed additional servers in the past, a long and complex process of installing new servers in the server rooms was needed before those servers could be utilized. Today, a single software engineer can order additional capabilities from a cloud hosting provider in a few minutes.

Achieving speed and scale through a bundling-as-a-service approach

Fortumo’s Trident Bundling Platform follows the approach of what we call bundling-as-a-service. Much like a lot of the software today is service and cloud based, bundling partnerships also have an advantage from using a service-based approach.

Normally, telcos need to spend their own resources and people on all of the following: partner integrations, onboarding, offer and subscription management, business intelligence, reporting, operational support, monitoring, technical maintenance and upgrades. 

This comes as part of the package with Trident. One integration to the platform enables the launch of bundles with any digital content service provider, coupled with end-to-end support from a dedicated team.

Growth through an actively managed bundling program

The capability to delegate those activities to the platform and the supporting team is important. Just as important is ensuring the growth and performance of the bundle partnerships launched. 

Success doesn’t only mean a quicker launch: it means expectations in terms of  user acquisition, conversion and retention are met and exceeded. This means every telco on the platform has a dedicated bundling program across all their bundle partnerships.

How do we make sure expectations are exceeded? By working actively together with telcos and service providers in identifying high-value subscriber segments to include in the bundle offers, benchmarking results to other partners, identifying performance issues and developing new features to maximize bundle performance. 

The goal of the account management program is to make sure each launched bundle meets the goals of the telco. An actively managed bundling program allows our partners to identify growth opportunities, decide which ones Fortumo should apply, and achieve results such as these:

Interested in learning more about how Trident helps accelerate bundle launches and guarantee bundling programs success for telcos? Get in touch.

Revenue calculator
Do the math: how much would your revenue increase with carrier billing?
Revenue calculator preview image

Content categories