7 Value Added Services to Boost Your Business

Value added services are the extra benefits or features that you offer to your customers beyond your core products or services. They can help you stand out from your competitors, increase customer loyalty, and generate more revenue. In this article, we will explore what value-added services are, why they are important, and how you can implement them in your business.

Key Takeaways

Value added services are the extra benefits or features that you offer to your customers beyond your core products or services.

Value added services can help you differentiate your brand from your competitors, increase customer loyalty and retention, and generate more revenue and profit.

You can implement various types of value-added services in your business, such as free shipping and delivery, free installation and setup, free training and education, free maintenance and repair, free consultation and advice, free upgrades and updates, or free gifts and rewards.

What is value added services?

Value added services (VAS) are the additional or complementary services that you provide to your customers along with your main products or services. They are usually not essential for the basic functionality of your product or service, but they enhance the customer experience and satisfaction. For example, if you sell smartphones, you can offer free accessories, warranty, technical support, or software updates as value added services.

Why are value added services important?

Value added services can benefit your business in many ways, such as:

Differentiating your brand from your competitors. By offering something extra or unique that your competitors do not offer, you can create a competitive advantage and attract more customers.

Increasing customer loyalty and retention. By providing more value and convenience to your customers, you can increase their satisfaction and loyalty. This can reduce customer churn and increase repeat purchases.

Generating more revenue and profit. By offering value added services, you can increase your average order value and upsell or cross-sell more products or services. You can also charge a premium price for your value-added services if they are perceived as valuable by your customers.

How to implement value added services in your business?

There are many types of value-added services that you can offer to your customers, depending on your industry, target market, and customer needs. Here are some examples of value-added services that you can consider for your business:

Free shipping and delivery. This is one of the most common and popular value-added services that online businesses offer. It can reduce the friction and cost of buying online and increase customer satisfaction.

Free installation and setup. If you sell products that require installation or setup, such as furniture, appliances, or software, you can offer free installation and setup as a value-added service. This can save your customers time and hassle and ensure that they use your product correctly.

Free training and education. If you sell products or services that require some learning curve or skill development, such as software, courses, or coaching, you can offer free training and education as a value-added service. This can help your customers get the most out of your product or service and increase their confidence and competence.

Free maintenance and repair. If you sell products that require maintenance or repair, such as vehicles, electronics, or equipment, you can offer free maintenance and repair as a value-added service. This can extend the lifespan of your product and reduce the risk of breakdowns or malfunctions.

Free consultation and advice. If you sell products or services that require some expertise or guidance, such as legal, financial, or health services, you can offer free consultation and advice as a value-added service. This can help your customers make informed decisions and solve their problems.

Free upgrades and updates. If you sell products or services that evolve over time, such as software, apps, or subscriptions, you can offer free upgrades and updates as a value-added service. This can keep your product or service relevant and up-to-date and increase customer satisfaction.

Free gifts and rewards. If you want to surprise and delight your customers, you can offer free gifts and rewards as a value-added service. This can be anything from samples, coupons, vouchers, discounts, points, cashback, or loyalty programs. This can increase customer engagement and loyalty.

Tips

Offer value added services that are relevant, useful, and valuable to your customers. Do not offer value added services that are irrelevant, unnecessary, or low-quality.

Communicate the benefits and features of your value-added services clearly and persuasively to your customers. Highlight how your value-added services can solve their problems, meet their needs, or exceed their expectations.

Test and optimize your value-added services regularly. Experiment with different types, formats, prices, and delivery methods of your value-added services and measure their impact on your customer satisfaction and revenue.

Value Added Services: A Growing Industry

Value added services (VAS) are services that enhance the core offerings of a product or service provider. VAS can include features such as entertainment, information, security, payment, and customer support. VAS can increase customer satisfaction, loyalty, and revenue for the service provider.

Global Demand for VAS

According to a report by Grand View Research, the global value-added services market size was valued at USD 1.3 trillion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 16.8% from 2021 to 2028. The report attributes the growth of the market to the increasing adoption of smartphones, mobile internet, cloud computing, and artificial intelligence. The report also identifies some of the key segments and regions in the VAS market.

Segments

The report segments the VAS market by type, end-use, and region. By type, the market is divided into mobile value-added services (MVAS) and fixed value-added services (FVAS). MVAS are services that are delivered through mobile devices, such as SMS, MMS, mobile games, mobile music, mobile TV, and mobile banking. FVAS are services that are delivered through fixed networks, such as broadband internet, IPTV, VoIP, and video on demand.

By end-use, the market is divided into consumer and enterprise. Consumer VAS are services that are targeted to individual users, such as entertainment, education, health, and social media. Enterprise VAS are services that are targeted to business users, such as cloud computing, e-commerce, cybersecurity, and business intelligence.

Regions

The report covers the VAS market in five regions: North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The report states that Asia Pacific was the largest regional market in 2020, accounting for 38.6% of the global revenue share. The report attributes the dominance of Asia Pacific to the large population, high smartphone penetration, and rapid digital transformation in the region. The report also projects that Asia Pacific will be the fastest-growing regional market from 2021 to 2028.

Value added services are an important part of the service sector of the economy. They provide additional benefits and features to customers and service providers. The global demand for VAS is expected to increase in the coming years due to the technological advancements and changing consumer preferences. The VAS market is segmented by type, end-use, and region, with Asia Pacific being the largest and fastest-growing region.

Frequently Asked Questions

Q: What is the difference between value added services and core services?
A: Core services are the essential or primary services that you provide to your customers to meet their needs or solve their problems. Value added services are the extra or additional services that you provide to enhance the core services and create more value for your customers.

Q: How do I choose the right value-added services for my business?
A: To choose the right value-added services for your business, you need to understand your customers’ needs, preferences, expectations, pain points, and feedback. You also need to analyze your competitors’ offerings and identify any gaps or opportunities in the market. You should then select the value-added services that align with your business goals, brand identity, and resources.

Q: How do I measure the effectiveness of my value-added services?
A: To measure the effectiveness of your value-added services, you need to track and analyze various metrics, such as customer satisfaction, loyalty, retention, referrals, reviews, testimonials, revenue, profit, and return on investment. You should also collect and act on customer feedback and suggestions to improve your value-added services.

References:

http://www.prweb.com/releases/2013/11/prweb11284640.htm

https://www.investopedia.com/terms/v/valueadded.asp

https://www.shopify.com/blog/value-added-services

https://www.business2community.com/customer-experience/5-value-added-services-to-improve-customer-experience-and-increase-revenue-02361288