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What Are Value Added Services? – Expert’s Guide
“People don’t know what they want until you show it to them.” - Steve Jobs
Businesses can no longer rely on offering just their core services. Customers expect more, demand more, and, quite frankly, deserve more. The days of one-size-fits-all solutions are gone. In their place is the need for Value Added Services (VAS) that enhance core offerings and deliver personalized, seamless experiences.
This mindset is at the heart of modern digital services - staying one step ahead of customers' needs.
Read this article and learn what are value-added services and what industries can implement them to stay competetive.
What are Value Added Services (VAS)?
Nowadays, value-added services are the best way to create tailored experiences for customers that require more from a company than just a product. Through personalized offers, premium subscriptions, or loyalty perks, VAS platforms enable businesses to go beyond transactional relationships and create meaningful connections.
These services not only enhance the user experience but also unlock new revenue streams and opportunities for businesses to grow. By integrating VAS, companies can differentiate themselves from competitors, offering a full ecosystem of benefits. The ability to seamlessly deliver these additional services is a strategic necessity for long-term success.
Why Businesses Should Care About It?
Imagine explaining to a friend why some companies thrive while others struggle to stand out.
It's not just about the product anymore; it’s about the entire experience around it.
That’s where Value-Added Services (VAS) come into play - they’re the “extra” that makes customers choose you over the competition and keeps them coming back.
Reason #1: Rising Consumer Expectations
Today’s consumers expect personalized, seamless experiences tailored to their individual needs. Digital offerings and world-wide access to various products and brands made it easy for users to switch providers, making customer loyalty harder to maintain.
According to a report by PwC, 73% of people say customer experience is an important factor in their purchasing decisions. This is where VAS plays a crucial role, by providing extra value in the form of supplementing services or offers, businesses can meet those rising expectations and build stronger relationships with their customers.
Reason #2: Keeping Up With Market Dynamics
With the rapid expansion of the digitalization, consumers have an endless stream of options at their fingertips.
The explosion of mobile commerce, social media, and on-demand services means anyone can virtually access anything. As the options grow, so does the challenge of capturing attention.
VAS gives businesses the edge by integrating services that enhance user convenience, providing value that goes beyond the core offering.
In fact, McKinsey highlights that companies using personalization strategies can boost revenue by 40% and see a 10-15% improvement in marketing efficiency.
Reason #3: Standing Out in a Niche
Think about how many brands you scroll past daily.
Now, think about the ones that catch your eye.
They usually have something unique that sets them apart, right? That’s exactly what VAS can do for businesses - it’s the secret sauce for standing out.
Companies that go beyond just offering a product or service and instead focus on delivering a unique experience win the loyalty game. For instance, offering faster delivery, exclusive access to features, or rewards programs can turn a good experience into a memorable one.
VAS platforms make this possible, helping businesses create value that keeps customers coming back, even when competitors are just a click away.
Types of Value Added Services
Now we are going to explore the concrete types of what actually businesses can offer to their customers in terms of VAS.
VAS is all about adding something more to the core offering, something that makes life easier, more exciting, or just plain better for the customer. Let's walk through some examples that’ll make it click.
Loyalty Programs
Loyalty programs are a classic example of VAS, but they’ve come a long way from the days of simple punch cards. Modern loyalty programs are smarter, more interactive, and far more effective at keeping customers engaged.
Take Starbucks as an example. Their loyalty app allows users to earn points (or "Stars"), access exclusive deals, and even pay for their coffee - all from their phones. It’s not just about rewards, but creating a seamless experience that keeps customers coming back.
The real secret to a successful loyalty program? Personalization.
When you tailor rewards and offers to individual preferences, it shows customers that you truly understand them. This turns casual shoppers into loyal advocates who feel valued and appreciated.
Subscription-Based Model
Subscriptions are everywhere these days.
Think Netflix or Amazon Prime - why do we stay subscribed?
It’s not just about the service; it’s about the value you feel you’re getting over time. With Netflix - it’s that endless library of content, with Prime - it’s the fast delivery, exclusive deals, and even access to music and shows.
Subscriptions make life simpler, and they’re addictive. Once you’re in, you’re less likely to jump to a competitor because it feels like you’re already getting a deal. For businesses, Subscription Commerce is a goldmine - steady revenue and loyal customers in one package.
Partnership Benefit Platforms
Let's take a scenario that you’re running a business and you’re looking for a way to stand out from the competition.
What if you could offer them not just your core product or service, but also exclusive deals, discounts, or perks from other businesses?
That’s exactly what a partnership benefit platform does. This type of Value-Added Services platform creates a win-win scenario for everyone involved.
Think of it as a curated hub of offers, discounts, or complimentary services from your business partners that align with your core offering. For customers, it feels like getting a bonus with every purchase, for businesses, it’s a way to deepen customer loyalty and expand their reach.
Take American Express, for example. Their cardholders get access to a wide range of partner perks - discounts on flights, dining rewards, or early access to events. This strategy adds significant value to owning an AmEx card, making it much more than just a payment tool.
Industries That Thrive with Value Added Services
Banking, Fintech, and Financial Services
Think about how much the banking experience has changed. It’s no longer just about deposits and withdrawals. Banks and fintech companies are using VAS to make financial management easier, more engaging, and, frankly, more personal.
Look at Revolut - they’ve turned a simple banking app into a financial hub. You get budgeting tools, investment options, currency exchange, and even travel insurance, all in one place. These extras don’t just make banking convenient - they keep customers loyal in a market where switching banks has never been easier.
For traditional banks, offering features like real-time alerts, coupons, vouchers and personalized financial advice through apps is now a must. The similar project we made for PKO BP in Poland - you can read more about this Banking Marketplace Solution.
Telecommunications
The telecom industry has been using VAS to stay relevant and keep customers hooked.
Sure, people need phone and data plans, but what really keeps them from jumping to a competitor are the extras. Take AT&T, for example. They bundle HBO Max with unlimited data plans. So, not only are you getting your usual service, but you’re also getting access to premium entertainment. That’s a massive value-add.
Another example? Cloud storage and mobile payments. These are services that telecom companies can offer to make life easier for their customers. It’s not just about selling a phone plan anymore—it’s about creating an ecosystem where switching providers feels like losing more than just a service.
Insurance
The insurance industry is using VAS to enhance customer experiences and foster loyalty. Wellness programs reward healthy behaviors, such as exercising or completing regular health check-ups, while telemedicine services allow policyholders to consult with doctors and access prescriptions remotely.
Auto insurance often includes roadside assistance for emergencies like towing, flat tires, or lockouts. Digital tools like mobile apps simplify policy management, allowing users to file claims, track coverage, and access digital insurance cards conveniently.
Some insurers also offer discounts on smart home devices, like water leak detectors, to help customers proactively prevent risks.
Additional VAS examples include programs that reward safe driving with discounts or cashback, financial planning tools that assist with savings and retirement goals, and travel assistance services for emergencies like lost passports or medical care abroad.
Pet insurance policies sometimes include perks such as discounts on training and grooming services, while loyalty programs offer benefits for claims-free behavior.
These services go beyond traditional coverage, integrating convenience and added value into the customer’s daily life, making insurance more engaging and impactful.
Retail
Retailers are turning to VAS to give customers more than just products—they’re offering experiences.
Starbucks is an example we previously have mentioned. Their app does it all: lets you order ahead, tracks your rewards, and even sends you personalized promotions. It’s not just a coffee shop anymore, it’s a full-on ecosystem designed to keep you engaged.
And it’s not just big names like Starbucks. Smaller retailers are getting in on the action, too, with loyalty programs, tailored discounts, and mobile apps that make shopping feel effortless. In a crowded market, these value-added touches are what make a brand memorable.
How to Start Implementing Value Added Services
For businesses and industries that understand the need to offer 'extras' but aren’t sure where to begin, introducing Valuea Added Services can seem overwhelming. The secret lies in taking a strategic, step-by-step approach.
Spoiler alert💡: Below is a list of questions designed to guide you through each step and make the process more effective
Dive into your customer data and preferences. What challenges do they face? What extras would make their experience better or more enjoyable? For example, do they value convenience, cost savings, or personalized experiences?
Clarify what you want to achieve with VAS. Are you looking to increase customer retention, differentiate your brand, or create new revenue streams? Your goals will shape your approach.
Look at what others in your industry are offering. This can give you ideas for what works and highlight gaps where you could innovate.
Identify the unique strengths of your business and consider how you can build VAS around them. For instance, if you already have a strong digital presence, you could add subscription services or partner discounts.
Begin with a pilot program or an MVP. Test one or two VAS ideas with a subset of your customers and gather feedback to refine your offering before scaling up.
20 Important Questions to Answer Before Introducing VAS
- Who are your target customers, and what do they value most?
- What pain points or challenges do your customers face that VAS could address?
- How do your customers currently interact with your business, and where are the friction points?
- What feedback have your customers provided about your current offerings?
- Are your customers looking for convenience, personalization, or cost savings?
- What VAS do your competitors offer, and how successful are they?
- What gaps exist in your industry that you could fill with VAS?
- Are there industry trends (e.g., sustainability, digital transformation) that you can align with?
- What innovative VAS ideas from other industries could inspire your approach?
- What partnerships or collaborations could enhance your VAS offering?
- What is the primary objective of introducing VAS (e.g., retention, new revenue streams, differentiation)?
- How will VAS align with your core business values and strategy?
- What metrics will you use to measure the success of your VAS initiatives?
- Do you want to monetize VAS directly, or will it serve as an added value to existing offerings?
- How will VAS help you stand out in a competitive market?
- What resources (e.g., technology, team, budget) will you need to introduce VAS?
- How will you integrate VAS into your existing systems and processes?
- What challenges could arise during implementation, and how will you address them?
- How will you communicate the benefits of VAS to your customers?
- How can you gather and act on customer feedback to continuously improve VAS?
Final Thoughts
VAS is all about creating that extra layer of value that makes people think, “Why would I go anywhere else?” And the best part? You don’t need to reinvent the wheel.
You just need to really understand what your customers want and find a way to deliver it.
In our experience, the most successful VAS aren’t flashy or complicated - they’re the ones that genuinely solve a problem or make life easier for customers.
For example, once we worked on a project where we added a simple loyalty and coupon program to banking customer. It wasn’t groundbreaking, but by offering personalized rewards and coupons, we saw a huge jump in traffic. It just reinforced the idea that when you give customers something meaningful, they stick around.
So, if you’re thinking about introducing VAS, start small and focus on what will make the biggest impact for your audience.
If you need any help, feel free to contact us business@ulansoftware.com !
What are value added services (VAS)?
Why businesses should care about it?
Types of value added services
Industries that thrive with value added services
How to start implementing value added services?
20 important questions to answer before introducing vas
Final thoughts
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