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The ISP Tech Race: How to Win Against Competitors

Starting line

In 2018, the American Consumer Satisfaction Index showed that internet service provider (ISP) scores rank the lowest out of 46 industries, and it doesn’t look like things will look up anytime soon.

Or does it?

ISPs certainly face significant challenges in today’s business and tech landscape, but many of these challenges can be overcome by incorporating new offerings.

Let’s address the elephant in the room. Customer loyalty is a tough sell for an ISP.

There is something to be said about keeping customers around; it costs nearly 50 times less to keep an existing wireless customer than to acquire a new one. However, in the last five years, CAC (customer acquisition cost) has risen almost 50% while LTV (life-time value) has been falling. The telecom industry’s CAC average is estimated to be around $800-$1000 – one of the highest in today’s market.

What incentivizes a consumer to stay loyal to their ISP? Because it’s less personal than a car or a hair salon, ISPs have to rely on their differentiators. Without anything solid to set one ISP apart from other providers, customers will run – not walk – to the cheaper option. Problem is, what used to be seen as differentiators are now commodities. ISPs must become more creative with their broadband offerings.

WiFi Motion – the differentiator of the future

It’s time to start using WiFi in a whole new way – for motion detection and context. WiFi Motion can help improve customer acquisition and loyalty because it makes the ISP provider an integral part of the smart home experience rather than just a box that is set up and never touched again until there’s a problem.

Perceived Customer Value Chart

WiFi Motion goes beyond parental controls and fast internet connectivity to provide a true differentiating factor. With WiFi Motion as part of an offering, ISPs can help their customers track and contextualize the motion in their homes through their routers/gateways. The regular updates a customer receives on motion occurring within their home – both expected and unexpected – give him or her ongoing connection points with the ISP’s brand beyond just initial setup.

If you are an ISP looking for ways to set your service apart from your competitors, check out our WiFi Motion solutions or reach out to [email protected].

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