Yesterday, Bango announced a new agreement with global computer security software company, McAfee. McAfee is a world leader in digital-security tools for personal computers and mobile devices.
This agreement with Bango is part of a growing trend for digital merchants to bundle their products together with service providers, to the benefit of both parties. Three key benefits include growing subscriber numbers, improving customer retention and ultimately, increasing revenue.
These product bundling partnerships are commonly adopted by telcos & OTT streaming providers. However, they aren’t the only ones alive to the benefits bundling has to offer. Under this agreement, telcos, banks, healthcare providers, retailers, insurance companies and more will all be able to offer McAfee’s products to their consumers. As well as bundles, telcos are starting to offer products like McAfee security to their customers as an upsell offer, typically discounted or provided at no cost for an introductory period.
The global cyber security market is currently valued at c.$150B and is expected to grow to c.$375B by 2029, driven by online e-commerce platforms and the emergence of technologies such as the Internet of Things . The appeal for payment providers to bundle McAfee’s software with their own services and tap into the customer base spending in this rapidly growing market is clear.
What’s more, where we normally think of a bundle between a merchant and a payment provider (e.g. a telco or an energy bill), there are increasing examples of merchants bundling their products together with the products of other merchants, expanding the available opportunity within subscription bundling. The recent announcement of Microsoft and Spotify’s partnership is a great example of that .
In yesterday’s press release , we talk about McAfee using Bango e-distribution technology. What this means is that McAfee has onboarded to the Bango Platform and immediately, all the other merchants, payment providers and partners connected to the Bango Platform can offer McAfee as a bundled subscription to their customers. For McAfee, this is a much faster route to market and a far easier way to activate hundreds of distribution channels and place their products in front of millions of potential customers. In addition, Bango manages the customer entitlements & activations for their products, and can use the data within the platform to advise on offer targeting that drives even greater customer acquisition numbers.
McAfee’s product is easily bundled with many of Bango’s connected partners. Bundling with a telco or broadband provider bill is an obvious choice, but the sale of online productivity services or even the sale of physical goods through an online retailer would also be great pairings with McAfee. In return, these partners have a more diverse array of products and services they can offer to their customers beyond TV & gaming. This increasing diversity of subscriptions as bundled offers is something we see continuing to grow, boosting the number of customer touch points for subscription products.