Marketing of Value Added Services in Bfsi
INTRODUCTION
A Value Added Service (VAS) can be defined as:
Any service provided by the service provider to promote its main service business
(Wikipedia)
Or
Value added services is a term that is used to refer to service options that are complimentary to but also ancillary to a core service offering.
(wiseGEEK)
As Kotler as said:
“Over time the augmented benefits become the expected benefits.”
The same applies to Value added services, what a customer sees as a value added service today becomes a part of the expected base service in some time. VAS can be said to have a time dimension associated with it. A value added service becomes a basic service when it becomes sufficiently common and widely deployed to no longer provide substantive differentiation on a relative basis. A classic example of this is the ATM machine, when launched it was a VAS by the banks providing it, but now it’s expected by every bank to provide ATM access.
It is difficult to mark when a value added service can no longer be called so, but in general, all VAS share some common characteristics :
1. Not a form of basic service but rather adds value total service offering
2. Stands alone in terms of profitability and/or stimulates incremental demand for core service(s)
3. Can sometimes stand alone operationally
4. Does not cannibalize basic service unless clearly favorable
5. Can be an add-on to basic service, and as such, may be sold at a premium price
6. May provide operational and/or administrative synergy between or among other services – not merely for diversification
Every VAS will demonstrate one or more of the above characteristics. Furthermore, a value-added service will never stand in stark contrast to any of the above characteristics.
TYPES OF VALUE ADDED SERVICES
Value added services can be divided into two categories:
The first kind of value added services are those which stand alone from an operational perspective. They can be bundled with other services but is
A Value Added Service (VAS) can be defined as:
Any service provided by the service provider to promote its main service business
(Wikipedia)
Or
Value added services is a term that is used to refer to service options that are complimentary to but also ancillary to a core service offering.
(wiseGEEK)
As Kotler as said:
“Over time the augmented benefits become the expected benefits.”
The same applies to Value added services, what a customer sees as a value added service today becomes a part of the expected base service in some time. VAS can be said to have a time dimension associated with it. A value added service becomes a basic service when it becomes sufficiently common and widely deployed to no longer provide substantive differentiation on a relative basis. A classic example of this is the ATM machine, when launched it was a VAS by the banks providing it, but now it’s expected by every bank to provide ATM access.
It is difficult to mark when a value added service can no longer be called so, but in general, all VAS share some common characteristics :
1. Not a form of basic service but rather adds value total service offering
2. Stands alone in terms of profitability and/or stimulates incremental demand for core service(s)
3. Can sometimes stand alone operationally
4. Does not cannibalize basic service unless clearly favorable
5. Can be an add-on to basic service, and as such, may be sold at a premium price
6. May provide operational and/or administrative synergy between or among other services – not merely for diversification
Every VAS will demonstrate one or more of the above characteristics. Furthermore, a value-added service will never stand in stark contrast to any of the above characteristics.
TYPES OF VALUE ADDED SERVICES
Value added services can be divided into two categories:
The first kind of value added services are those which stand alone from an operational perspective. They can be bundled with other services but is