Why Your Subscribers Want a DIY Option

How the IKEA effect can boost customer satisfaction and loyalty

Have you ever wondered why some people love to assemble their own furniture, even if it takes more time and effort than buying it ready-made? Or why some people are more attached to their homemade cookies than the ones from the bakery?

The answer lies in a psychological phenomenon called the IKEA effect. The IKEA effect highlights people's tendency to value and enjoy the products that they have partially created or contributed to. The IKEA effect can influence not only consumer behavior but also employee motivation, innovation, and creativity.

How does the IKEA effect apply to the telecom industry? Many of your subscribers want to do their own installation and enjoy customizing their Wi-Fi experience. BSPs can leverage the IKEA effect to increase customer satisfaction, loyalty, and retention while reducing costs and improving efficiency.

The IKEA Effect in Action

Research suggests that the IKEA effect occurs because people feel a sense of accomplishment and ownership when they invest their own labor and resources into a product. Consumers also reported higher satisfaction and attachment to their self-made products. It's the same reason so many adults (myself included) love Legos!

The IKEA effect is not limited to physical products but can also apply to services and experiences. Whether a furniture set or a Wi-Fi gateway, people feel more connected to the product's identity and meaning when investing their time in the DIY process. The IKEA effect can also enhance the perceived value and quality of the product.

The IKEA Effect and Your Subscribers

How does the IKEA effect relate to telecom subscribers and their installation preferences? Imagine you are a new broadband subscriber, and you have ordered a service for your home. You have two options for the installation. You can schedule an appointment with a technician who will come to your home and do the installation for you, or you can receive a self-install kit containing all the necessary equipment and instructions to do the installation yourself.

Which option would you choose? According to the IKEA effect, you might be more inclined to select the self-install option, which gives you more control, autonomy, and involvement in the process. You would also feel prouder and more satisfied with the outcome, and more loyal and committed to the service and the BSP. Not only that, but you could get connected sooner and receive a bill credit for your effort.

When Minnesota-based CTC introduced their Broadband in a Box, it was originally to solve new, COVID-related challenges. The cooperative discovered that their subscribers were happy with the self-installation services. In a win-win for both subscriber and BSP, CTC reduced truck rolls by 50% and helped lead to a 69 Net Promoter ScoreSM (NPS®)*.

Of course, some people will still prefer the technician's convenience, reliability, and expertise. However, the IKEA effect suggests that a significant segment of subscribers would appreciate and benefit from the opportunity to do their own installation, which is why paying attention to this segment of your customer base is essential.

The Benefits of Self-Installation and Self-Upgrade for BSPs

There are also business advantages to offering a self-install/upgrade option. Here are some of the potential benefits:

• Reduced costs: Self-installation can save BSPs the costs of rolling a truck and sending technicians to customers' homes while reducing the need for customer service calls.

• Improved efficiency: Self-installation can increcaase operational efficiency, serve more customers in less time, avoid unnecessary travel to and from the subscriber's home, and avoid delays or cancellations.

• Enhanced customer satisfaction: Subscribers can avoid the hassle of waiting for technicians, which allows the IKEA effect to create a meaningful sense of ownership.

• Increased customer retention: Subscribers who have invested their own effort and resources into the installation are less likely to switch to another provider or cancel their service.

Conclusion

BSPs can leverage the IKEA effect to offer their customers a self-install option and reap the benefits of reduced costs, improved efficiency, enhanced customer satisfaction, and increased customer retention. With Calix SmartHome, you can empower your subscribers to create their own personalized and connected home experience. And Calix is here with you every step of the way, ensuring your success.

Discover the ways in which SmartHome installation options can elevate your business and set you apart in competitive markets: Get in Touch

*Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.

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