Winning With Value-Based Offers

How Broadband Experience Providers Can Stand Out and Thrive Beyond Speeds & Feeds

Not so long ago, the idea of paying five dollars for a single cup of coffee would have seemed absurd—almost criminal, in fact. 

Coffee was coffee—a simple, inexpensive commodity differentiated primarily by price.

Then along came Peet’s Coffee, a Berkeley, California, roaster that transformed people’s attitudes toward coffee. This shift is especially significant because the founders of Starbucks—Jerry Baldwin, Zev Siegl, and Gordon Bowker—were mentored by Alfred Peet and Peet’s provided the coffee that Starbucks sold until 1973. And what was the big revelation that they figured out?

Starbucks doesn’t just sell coffee—they offer an experience; a sense of community, customization options, and convenience. Customers didn’t even know this was an experience they would value until Starbucks offered it to them. Today, millions are willingly pay premium prices not only for the commodity itself, but for the total experience Starbucks provides.

Broadband Experience Providers (BXPs) find themselves at a similar crossroads. The industry has long focused on “speeds and feeds”—competing primarily on bandwidth and price. However, as connectivity becomes increasingly commoditized, differentiation based solely on speed grows more challenging and less profitable. Subscribers now seek a connected life that enhances their daily experiences and frankly, don’t even consider  the speed.

This shift demands that BXPs adopt a value-based mindset, placing subscriber needs, outcomes, and perceived value at the center of their marketing strategy. Below, we’ll share a strategic framework for creating compelling value-based offers—much like that Venti half-caff, non-fat with cold foam and caramel drizzle that some people cannot live without.

Understanding Subscriber Needs

Creating effective Value-Based Offers (VBOs) begins not with technology or price points, but with a deep understanding of your subscribers’ real needs. It’s easy to default to features and functions, after all, they’re concrete and easy to discuss. But focusing solely on these aspects misses the broader point.

To effectively create value-based offers, BXPs should:

Listen Actively: Engage directly with subscribers through surveys, customer feedback loops, and social listening to uncover pain points, unmet needs, and desired outcomes.
Ask questions like:

• What frustrations do they face in their daily connected lives?
• What specific problems are they trying to solve?

Observe Behaviors and Patterns: Utilize analytics to observe subscriber behavior, such as peak usage times, popular applications, or connected device preferences. Subscribers’ actual behaviors often reveal what they truly value beyond what they explicitly articulate.
Ask questions like:

• What applications are used, and when?
• How many devices are connected at once?

Segment Subscribers Meaningfully: Move beyond traditional demographic segmentation toward segments based on lifestyle, usage habits, and personal interests. Understanding these subtler distinctions enables crafting offers that resonate deeply.
Ask questions like:

• What life stages are my subscribers in?
• How do they consume media?
• What do they do for fun or relaxation?

Netflix is a perfect example of this. They closely monitor subscriber viewing habits and preferences, allowing them to develop precisely targeted content and recommendations. Their success doesn’t come simply from delivering content but from anticipating and understanding subscriber tastes and behaviors. Similarly, BXPs must anticipate subscribers’ needs around connectivity, productivity, entertainment, security, and family well-being.

Ultimately, understanding subscriber needs isn’t merely a research exercise. It’s foundational for crafting offers subscribers genuinely appreciate and willingly choose— even at premium prices.

Defining Your Value Proposition

Once you’ve developed a deep understanding of your subscribers’ needs, the next step is clearly defining your value proposition. A strong value proposition tells subscribers exactly why your service is different—and why it matters to them.

Many BXPs mistakenly believe their value proposition is obvious: faster speeds, reliable connections, or lower prices. But this approach misses the opportunity to stand out and connect with subscribers at a deeper level.

Your value proposition should emphasize outcomes and experiences—definitively  explaining how your service enhances subscribers’ daily lives. It answers the question why should subscribers choose you over anyone else?

To create a compelling value proposition, BXPs should:

• Highlight Unique Outcomes: Articulate how your offers uniquely improve subscribers’ lives, not just in abstract terms, but in specific, relatable scenarios. For example: “We help families stay connected seamlessly across every room, device, and moment.”
  
• Focus on Differentiation: State precisely what you deliver that others can’t easily replicate. This might include exceptional customer care, advanced security, or integration with smart-home devices. For example: “Our subscribers never worry about Wi-Fi dead zones because our service is designed to cover their whole home, indoors and out.”
  
• Make It Easy to Understand: Use, straightforward language that subscribers immediately grasp. Avoid technical jargon or overly generic claims. For example: “Internet that just works, everywhere you need it—simple as that.”

Netflix, again, provides a clear example. Their value proposition isn’t just streaming content; it’s “Watch anywhere. Cancel anytime.” It’s straightforward, subscriber-centric, and emphasizes convenience and freedom, not just the volume or quality of content.

By clearly defining your value proposition around meaningful subscriber experiences, you make your offers irresistible. Not because they’re the fastest or cheapest, but because they’re exactly what your subscribers truly want.

Designing Value-Based Offers

Now that you’ve clarified your value proposition, it’s time to bring it to life by designing compelling Value-Based Offers (VBOs). This is where you translate your subscriber insights and value proposition into tangible packages your subscribers will love.

It might feel natural to default to familiar bundles and speed-based tiers—but resist the urge. 

Instead, ask yourself: “What combination of features, services, and experiences will deliver the highest perceived value to each subscriber segment?”

When designing your VBOs, consider these core principles:

• Bundle Around Outcomes, Not Features: Subscribers aren’t necessarily interested in individual features—they care about how your offer makes their lives better, easier, or safer. Bundle services into clear, outcome-driven packages. For example: Instead of “500 Mbps internet + Wi-Fi,” try “Family Connect: Reliable connectivity for the whole family, anytime, anywhere.”
  
• Offer Flexibility and Personalization: Give subscribers meaningful choices to personalize their experiences. Offer add-ons or easy upgrade paths aligned with their lifestyles. For example: A “Gamer’s Edge” package, an outdoor Wi-Fi extender, or security add-ons like cameras and sensors that match different subscriber priorities.
  
• Clearly Show the Value: Visually and verbally communicate exactly how each package or add-on directly meets specific subscriber needs. Highlight the outcomes and benefits explicitly, making it obvious what they’re getting and why it matters. For example: “Work-from-Home Pro: No dropped calls, seamless video conferencing, and business-grade reliability.”
  

Consider meal-kit providers like HelloFresh. They don’t sell ingredients—they sell convenience, simplicity, and family-friendly meals tailored precisely to subscribers’ tastes and lifestyles. Subscribers pay more because the value and convenience are crystal clear.

Similarly, BXPs have the opportunity to go beyond speeds and feeds, creating VBOs that subscribers readily embrace, pay premium prices for, and genuinely appreciate.

Pricing for Perceived Value

With your VBOs clearly defined, the next critical step is aligning your pricing strategy with perceived subscriber value. This is the point where BXPs often stumble—reverting to cost-plus or competitor-based pricing and leaving money (and opportunity) on the table.

Instead, your pricing should reflect how much subscribers value the experiences and outcomes you’re providing—not just how much your service costs to deliver.

Here’s how you can effectively price for perceived value:

• Align Pricing with Subscriber Benefits: Connect your pricing clearly to the value you deliver. Subscribers should immediately understand why one tier costs more than another, based on the outcomes and convenience each delivers. For example: If your premium package guarantees extended coverage, enhanced security, and dedicated support, make sure subscribers clearly see and appreciate these outcomes when they choose that option.
  
• Use Tiered Pricing Strategically: Offer clear pricing tiers that give subscribers intuitive upgrade paths based on increasing levels of value. Make it easy and attractive to choose higher-value packages that naturally align with their lifestyles. For example: Entry-level plans might focus on essential connectivity, while higher tiers add premium experiences like advanced security, dedicated customer service, or extended Wi-Fi coverage.
  
• Test and Learn from Subscriber Behavior: Experiment with your pricing strategy, monitor subscriber uptake, and adjust accordingly. Pricing for value isn’t static—subscribers’ perceptions of value evolve, and your pricing should adapt to reflect their feedback. For example: Introduce limited-time value bundles or test new add-ons at different prices, carefully monitoring subscriber interest to refine your ongoing pricing approach.
  

Think about Adobe Creative Cloud. Adobe doesn’t price based on how much it costs them to deliver software—they price based on how much creative professionals value the tools and outcomes their software provides. Similarly, your pricing should reflect the real-world impact your offers have on subscribers’ lives.

By aligning your pricing with perceived subscriber value, you not only differentiate yourself clearly from competitors stuck in price wars, but also create lasting subscriber loyalty—because subscribers recognize that the experience you’re delivering is worth every penny.

Communicating Value Clearly

You’ve done the hard work—understanding subscriber needs, defining a powerful value proposition, creating value-based offers, and aligning your pricing. But even the best-designed offer won’t succeed if subscribers don’t immediately grasp its value.

Clear communication isn’t just about marketing, it’s about connecting subscribers emotionally to your offer. Your message should make subscribers say, “This is exactly what I need!”

To communicate value effectively, do the following:

• Lead with Subscriber Benefits: Always communicate in terms of the outcomes subscribers care about most. Avoid jargon, technical specifications, or generic industry language. Instead, describe exactly how their lives improve with your offer. For example: Instead of saying “Gigabit internet speeds,” say “Instant streaming, gaming without interruptions, and seamless work-from-home video calls.”
  
• Use Relatable Stories and Examples: Share relatable subscriber stories and testimonials that clearly demonstrate how your service has positively impacted real lives. People connect deeply with stories, especially those that feel authentic and familiar. For example: Highlight a family that finally eliminated Wi-Fi dead spots at home, or a local business that significantly improved productivity thanks to reliable connectivity.
  
• Simplify the Message Visually and Verbally: Visual simplicity is just as important as clear language. Ensure your website, collateral, and marketing materials quickly convey value without overwhelming subscribers. Use visuals, infographics, or icons to simplify and reinforce your message.

Take Patagonia, for instance. They don’t just sell jackets—they sell stories of sustainability, adventure, and environmental responsibility. Their customers immediately grasp and connect with the value beyond the product itself.

Your goal as a BXP should be similar: communicate clearly, authentically, and emotionally about the value your services bring to subscribers’ lives. When you do this effectively, subscribers won’t focus on price—they’ll focus on the meaningful benefits and experiences you deliver.

Delivering Consistent and Exceptional Experiences

You’ve clarified your value, designed compelling offers, and communicated clearly—but your job doesn’t end there. The real test is consistently delivering the exceptional experiences subscribers expect and deserve.

Subscribers measure value not just by what you promise, but by their everyday experience with your service. A consistently exceptional experience creates loyal, enthusiastic subscribers who not only stay longer but also recommend your services to others.

To consistently deliver exceptional experiences, do the following:

• Prioritize Reliability and Quality: Subscribers quickly forget flashy marketing promises if their internet connection frequently drops or slows down during peak usage. Reliability must be non-negotiable—it’s the foundation of trust and value. For example: Continuously monitor network performance and proactively address potential issues before subscribers even notice.
  
• Be Proactive, Not Reactive: Anticipate subscriber needs by proactively providing guidance, support, and solutions. Don’t wait for problems to emerge; instead, deliver insights and improvements proactively. For example: Alert subscribers when you detect performance issues, offering solutions, or automatic optimizations before they have to ask for help.
  
• Create Personal, Human Connections: Train customer service and support teams not only to solve issues efficiently but to build genuine relationships with subscribers as well. Exceptional experiences often depend on how subscribers feel during interactions—heard, supported, and valued. For example: Encourage customer support teams to personalize interactions, acknowledge subscribers by name, and follow up to ensure issues are fully resolved.

Consider how luxury hotels like Ritz-Carlton create loyalty through exceptional personal attention to detail. Guests don’t just remember a clean room, they remember how staff anticipated their needs, knew their preferences, and went beyond expectations. Your subscribers should experience your broadband experience in a similarly personal and meaningful way.

Delivering consistent, exceptional experiences transforms subscribers into loyal advocates, ultimately reinforcing your value-based approach and differentiating you clearly in a crowded marketplace.

Measuring and Refining Your Value-Based Offers

You’ve created exceptional value-based offers, priced them strategically, communicated clearly, and consistently delivered great experiences. But how do you know if it’s working? Success doesn’t just mean subscribers are paying—it means they’re genuinely happy, staying longer, and telling their friends.

Effective measurement helps you refine and optimize your value-based strategy over time. Here’s how to get it right:

• Measure Subscriber Satisfaction and Loyalty: Regularly track metrics such as Net Promoter Score (NPS) and customer satisfaction ratings to see if your subscribers feel your offerings truly enhance their daily lives. For example: Run quarterly subscriber satisfaction surveys (NPS), explicitly asking how likely subscribers are to recommend your experience to friends and family.
  
• Monitor Key Value Indicators: Beyond standard metrics like churn or revenue, track indicators that signal how effectively your value-based offers are resonating. Look at average revenue per user (ARPU), take-rate on add-ons, and referral rates as evidence of perceived value. For example: If subscribers eagerly choose premium security or home Wi-Fi enhancements, it’s a clear sign they see genuine value beyond basic connectivity.
  
• Continuously Seek and Act on Feedback: Regularly engage subscribers for feedback—not just through formal surveys, but through informal conversations and social listening. Use this feedback to continuously refine your value-based offerings. For example: Quickly adjust service features or pricing tiers if subscriber feedback indicates they’re not fully meeting expectations.

By regularly measuring, monitoring, and refining, you ensure your value-based approach remains relevant, attractive, and effective, thus driving ongoing subscriber loyalty and long-term growth.

The Choice is Yours to Make

BXPs today stand at a crossroads—one that industries from coffee to cars to content streaming have navigated before. You can either continue competing on increasingly commoditized factors like speed and price, or you can rise above the noise by embracing a value-based approach.

Creating VBOs isn’t just good marketing—it’s a strategic shift that redefines how subscribers view your services. Just as Starbucks transformed coffee from a commodity into an experience people eagerly pay a premium for, BXPs have the power to redefine connectivity. When subscribers recognize and appreciate the meaningful experiences and tangible benefits you offer, price becomes secondary—and loyalty naturally follows.

The key is understanding subscribers deeply, clearly articulating your value proposition, crafting compelling and personalized offers, pricing strategically, communicating clearly, and consistently delivering exceptional experiences. When executed thoughtfully, this approach builds lasting subscriber relationships that competitors relying purely on speeds and feeds simply can’t match.

Your next decision should be clear: embrace VBOs as the foundation of your growth strategy. BXPs that act decisively now won’t just survive—they’ll thrive, building deeper connections, stronger subscriber loyalty, and ultimately, enduring success.

After all, isn’t it better to compete on value rather than on price? Think about that the next time you are in line at Starbucks paying for your Venti half-caff, non-fat with cold foam and caramel drizzle.