Amazon has made some big moves recently. That includes a physical store and now seems to have plans to make another one involving cable TV. TV Predictions first noticed the Amazon Cable store. It includes Comcast’s Xfinity TV as well as Internet services for its customers living areas covered by the company.
Comcast shares the site provides easy ordering and simple pricing that’s like its new customer provides to customers in other locations. The main difference is the storefront. There’s also a support team for the website. It can cover various issues including sales and follow-ups through phones, e-mail chat as well as social media. That will hopefully provide enough channels to avoid installation problems that have been reported in the past.
Amazon has become famous for focusing on getting rid of extra steps from the process of sales and interactions with customers. Thus, it will perhaps be helpful in the issue of dealing with customers’ problems. However, it’s unclear if it can deal with disconnects. Comcast executive Neil Smit shared with the Wall Street Journal that Amazon has reduced how many clicks are needed for a transaction.
Charter could be the next company to sell its products on the Cable Store. It might seem like an odd teaming up since the boxes of the cable companies don’t carry Amazon video apps. That could change in the future. However, it’s possible it could work. It would be like the cable kiosks found in Best Buy stores and local malls.
The bottom line is that the process will be better than sifting through the majority of cable providers’ sites. Comcast’s services have a rating of 2 stars on the Amazon site. However, comparing packages is much faster and easier than in the past. It’s easy to jump between various options, ZIP codes, and contract terms.
Comcast is in the middle of pushing its “Triple Play” Services that include voice, video, and Internet. It’s using various marketing channels. The goal of Comcast is to promote its Xfinity Triple Play service and also to build the company’s brand.
During Comcast’s Q1 2016 earnings call that each year it tries to find new channels for marketing its various services. The company believes that partnering with Amazon will provide various benefits. In addition, Comcast has stated that teaming up with the tech giant has helped it to better understand “contextual selling.”
Comcast also stated in the earnings call that teaming up with Amazon could help to lower churn. It’s been successful in reducing it via market segmentation. The company is offering various products through its Triple Play services based on market segmentation.
This approach allows Comcast to upgrade a current customer to a different product rather than losing the Comcast customer to other companies. It suggests the result could be lower involuntary churn. That could increase the company’s average revenue per user (ARPU). During Q1 2016 Comcast Cable’s ARPU was $146.14. That was a 4% year-over-year increase. This is an important figure to keep in mind.