Economic Crisis Leads Customers to Want Home Services Bundled, Study Says16 Apr, 2009 By: Chris Tribbey
In these rough economic times, consumers are demanding more for less when it comes to their home connected services. And in an effort to keep their consumers happy, those offering subscription TV, Internet and phone services need to keep one word in mind: bundle.
A new report from research firm Yankee Group finds that consumers are more likely to keep services if they’re getting them from just one source, and new consumers can be drawn in by attractive deals that bundle services.
“We believe the deteriorating U.S. economy — and plummeting consumer confidence —will drive profound change in how people pay, and how much they pay, for these services,” wrote Christopher Collins, senior analyst for Yankee Group.
Progressively since 2006, Americans have spent more and more on subscription TV and Internet services, with cellular spending holding steady and landline services progressively dropping, according to the study. In total, the average American home is spending about $3 more per year on all connected services, for three years running, to a total of $226 annually in 2009.
Companies that offer all four services are the most likely to be attractive to consumers (according to 23% of survey respondents), the study said, and broadband Internet is the single-largest draw among all respondents (93%).
For more information about the report, visit www.yankeegroup.com.