7 Reasons Why You Need VAS Services for Your Business

VAS services, or value-added services, are additional features that enhance the core functionality of a product or service. They can help you increase customer satisfaction, loyalty, and revenue. In this article, we will explore what VAS services are, how they work, and why you need them for your business.

KEY TAKEAWAYS

VAS services are additional features that enhance the core functionality of a product or service.

VAS services can help you increase customer satisfaction, loyalty, and revenue.

VAS services work by adding value to your core product or service, making it more attractive and useful for your customers.

You need VAS services for your business to meet customer demands, enhance customer experience, and gain a competitive edge.

You can choose, market, and offer VAS services by understanding your customers, analyzing your competitors, identifying your opportunities, testing your ideas, communicating the benefits, providing social proof, creating urgency, and calling to action.

What are VAS services?

VAS services are extra benefits that you offer to your customers on top of your main product or service. They can be either free or paid, depending on your business model and strategy. Some examples of VAS services are:

Customer support: Providing timely and helpful assistance to your customers via phone, email, chat, or social media.

Warranty: Offering extended or lifetime warranty for your products, covering repairs or replacements in case of defects or damages.

Loyalty program: Rewarding your customers for their repeated purchases or referrals with points, discounts, coupons, or freebies.

Content: Creating and sharing valuable and relevant content with your customers, such as blogs, newsletters, videos, podcasts, or ebooks.

Training: Educating your customers on how to use your product or service effectively, or teaching them new skills or knowledge related to your industry.

Consulting: Giving your customers expert advice or guidance on how to solve their problems or achieve their goals using your product or service.

Personalization: Customizing your product or service to suit your customers’ preferences, needs, or tastes.

How do VAS services work?

VAS services work by adding value to your core product or service, making it more attractive and useful for your customers. They can help you:

Differentiate yourself from your competitors: By offering VAS services that are unique, innovative, or superior to what others are offering, you can stand out from the crowd and attract more customers.

Increase customer satisfaction: By providing VAS services that meet or exceed your customers’ expectations, you can make them happy and satisfied with your product or service.

Build customer loyalty: By delivering VAS services that create a positive and lasting impression on your customers, you can make them loyal and repeat customers who will buy from you again and again.

Generate more revenue: By charging for VAS services that add value to your product or service, you can increase your revenue and profit margin.

Why do you need VAS services for your business?

VAS services are essential for any business that wants to grow and succeed in today’s competitive and dynamic market. Here are some reasons why you need VAS services for your business:

To meet customer demands: Customers today are more demanding than ever. They want more than just a basic product or service. They want convenience, quality, variety, and value. By offering VAS services that cater to their needs and wants, you can meet their demands and keep them satisfied.

To enhance customer experience: Customers today are more experiential than ever. They want more than just a transactional relationship with a business. They want an emotional connection, a memorable experience, and a sense of belonging. By offering VAS services that enhance their experience with your product or service, you can create a strong bond with them and make them loyal advocates.

To gain a competitive edge: Customers today are more informed than ever. They have access to a lot of information and options online. They can easily compare and switch between different products and services. By offering VAS services that give you a competitive edge over others, you can attract and retain more customers.

TIP

One of the best ways to offer VAS services is to bundle them with your core product or service. This way, you can increase the perceived value and convenience of your offer, and encourage your customers to buy more from you.

Statistical Report on VAS Services

VAS services, or value-added services, are supplementary services that enhance the core offerings of a business. They are not essential for the primary product or service to function, but they provide additional benefits to the customers, such as convenience, efficiency, and satisfaction. VAS services can be found in various industries, such as telecommunications, banking, e-commerce, and healthcare.

Global Demand for VAS Services

According to a report by Grand View Research, the global VAS market size was valued at USD 1.2 trillion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 15.5% from 2021 to 2028. The report attributes this growth to the increasing adoption of smartphones, tablets, and other mobile devices, as well as the rising demand for digital content, online gaming, mobile advertising, and cloud-based services.

The report also segments the VAS market by type, application, and region. By type, the market is divided into short message service (SMS), multimedia messaging service (MMS), mobile email and instant messaging (IM), mobile money, location-based services (LBS), mobile infotainment, and others. By application, the market is categorized into personal and commercial. By region, the market is analyzed across North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

Regional Analysis of VAS Services

The report reveals that Asia Pacific was the largest regional market for VAS services in 2020, accounting for 38.7% of the global revenue share. This is due to the high penetration of mobile devices, the large population base, and the rapid development of digital infrastructure in the region. China, India, Japan, and South Korea are some of the key countries driving the demand for VAS services in Asia Pacific.

North America was the second-largest regional market for VAS services in 2020, with a revenue share of 25.4%. This is attributed to the advanced technological landscape, the high disposable income of consumers, and the presence of major players in the region. The United States and Canada are some of the leading markets for VAS services in North America.

Europe was the third-largest regional market for VAS services in 2020, with a revenue share of 19.8%. This is due to the increasing adoption of mobile devices, the growing popularity of online gaming and streaming services, and the supportive regulatory framework in the region. The United Kingdom, Germany, France, and Italy are some of the prominent markets for VAS services in Europe.

VAS services are an important source of revenue and differentiation for businesses across various industries. They offer more value to customers by enhancing their experience and satisfaction with the core products or services. The global demand for VAS services is expected to grow significantly in the coming years, driven by the proliferation of mobile devices, digital content, and cloud-based services. The regional markets for VAS services vary in terms of size, growth rate, and competitive landscape.

FREQUENTLY QUESTIONS

Q: What are some examples of VAS services in different industries?
A: Some examples of VAS services in different industries are:

E-commerce: Free shipping, free returns, gift wrapping, product reviews, recommendations, etc.
Banking: Online banking, mobile banking, ATM access, credit cards, rewards program, etc.
Education: Online courses, tutoring, mentoring, certification, etc.
Healthcare: Telemedicine, online consultation, home delivery of medicines, health insurance, etc.
Travel: Online booking, flight alerts, travel insurance, car rental, etc.

Q: How do I choose the right VAS services for my business?
A: To choose the right VAS services for your business, you need to:

Understand your customers: Know who they are, what they need, what they want, and what they value.

Analyze your competitors: Know what they are offering, what their strengths and weaknesses are, and what gaps they have.

Identify your opportunities: Know what you can offer that is different from or better than what others are offering.

Test your ideas: Know how feasible and profitable your ideas are by conducting market research and experiments.

Q: How do I market my VAS services to my customers?
A: To market your VAS services to your customers,

you need to:

Communicate the benefits: Tell your customers how your VAS services can help them solve their problems or achieve their goals.

Provide social proof: Show your customers how other customers have benefited from your VAS services, using testimonials, reviews, ratings, etc.

Create urgency: Make your customers feel that they need to act fast to get your VAS services, using limited time offers, discounts, scarcity, etc.