Customer acquisition is a notoriously pricey issue in the telecommunications industry. From our conversations with internet service providers (ISPs) in both North America and Europe, it is estimated to cost anywhere between $500 and $800 to acquire a new customer. Maintaining those you already have and finding ways to keep them engaged with your brand is the better option but, with very little room for differentiation between offerings beyond network speed and coverage, building that loyalty is challenging. When you consider that ISP customer satisfaction is also alarmingly low, there is a clear need for a disruptive force to change the game.
But there’s good news on the horizon for ISPs across the globe: disruption is here. A new development in wireless technology has introduced a powerful platform for building customer engagement, improving net promoter score, and accessing untapped potential for new revenue streams in the future. Those who jump on this opportunity now will be able to build a more compelling offering than the competition.
What is this new development, exactly? Motion detection powered by wireless signals. The technology is known in the wireless industry as WiFi sensing and already has proven applications in home security, elder care and smart home automation. It is incredibly easy to add this functionality to any WiFi network because it layers onto the home router and uses the existing connected devices — no additional hardware is required. This robust motion detection service can be added to your offerings as a standalone service, or bundled with other products, creating opportunities to both retain current customers and create new revenue streams.
From their experience at Blackberry, our founders already knew that wireless signals could be used for more and decided to invest the time and resources into learning how to use existing WiFi signals to bring insights to the end user. They found that when movement occurs in a space with WiFi coverage, ripples are created in the wireless signals that can be detected and interpreted as motion. Based on these insights, WiFi Motion™ was born – the industry’s first WiFi sensing solution that uses IoT devices as motion sensors. Fast forward six years and WiFi Motion is the leading WiFi sensing solution, giving ISPs a completely new way to look at customer retention.
Building loyalty and increasing brand engagement
The potential this technology creates for internet service providers is exciting, especially in terms of its ability to address a key industry issue: customer loyalty. According to BroadbandNow Research, an estimated 39 million US adults added or switched internet, TV and/or phone service in 2018. That’s a lot of movement, and WiFi sensing can help providers address that issue, whether by giving customers a reason to stay, or snatching up those who are thinking of switching to a provider that offers a more robust suite of services.
Forming stronger connections with customers is something all ISPs are looking for. They’re also looking to find new ways to keep their brand top of mind by increasing positive interactions with customers. WiFi Motion has demonstrated its ability to increase app stickiness, which means that consumers have more frequent reasons to use your app, creating positive interactions with your brand and increasing opportunities for monetization.
The typical relationship between ISPs and their customers largely centers around using WiFi at home, and we rarely have a reason to use our provider’s app, except to pay bills or get tech support when there’s an issue. With WiFi Motion’s home monitoring function controlled through your app, your customers have a reason to interact with your brand on an ongoing basis – especially when they’re not at home.
Up until now, WiFi has only been used as a way to connect devices to the internet, and customers have no need to interact with the service when they’re outside the home. For the first time ever, WiFi is delivering value to your customers even when they’re not home.
A proven start and a promising future
Data from our partners has suggested that each new service added to a network can reduce customer churn rates by 30%, representing an increased overall customer lifetime of 2.9 years. WiFi Motion is currently running in the U.S market and early data is promising. We’ve also seen that 20% of app engagement by daily users occurs within the motion section of the app and 72% of motion-related push notifications result in the user opening the app. Each of these interactions represents a new opportunity to get marketing messages in front of customers in a more targeted, direct, and personalized way, rather than filling up their email inbox with offers.
Explore the possibilities
The potential for ISPs to retain customers, build loyalty and increase their revenue by adding WiFi Motion to their offerings is clear. And, because the technology is so new, this is only the beginning of the kind of disruption that WiFi sensing will inspire.
As the first to market with a consumer product built on WiFi sensing, Cognitive Systems is working closely with other stakeholders in the industry to explore its potential further. In collaboration with the Wireless Broadband Alliance, our WiFi Sensing Next Gen Work group is leading the way to establish standards that will ensure the benefits of WiFi sensing can be brought to as many people as possible, and that all commercial avenues are explored. As with any kind of disruption, those who get on board in the early stages will have an advantage.
We are here to help you explore how adding WiFi Motion to your offering can help you maintain or improve current revenues by keeping your customers engaged and loyal, while bringing new opportunities for future growth. Don’t wait until your competitors do it first — contact us now to learn about licensing WiFi Motion.