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Value-added service


Value-added service definition

Commonly seen in telecom offerings, a value-added service (VAS) is an extra feature added to a core product.

It is a way for companies to increase sales and, at the same time, enhance customer experience and satisfaction.

VAS can be applied to a product before it is delivered to the customer or it can be provided or performed at the customer’s site.

Value-added service definition

How do value-added services work?

When a business creates a product or service, it provides options for consumers to enhance its value or customize it. These options are usually given at a lower or discounted price when added to a core offer. 

Others, such as a streaming subscription, for instance, are provided with free trials and can be bundled with existing packages.

Value-added services should benefit not only the business but also the customers. These can enhance customer satisfaction and brand recognition.

Advantages of offering value-added services

Companies that have value-added services or product offerings can have various advantages.

Using pricing as leverage

Companies that have reasonable pricing with value-added services usually make a huge impact on consumers.

They strategize and utilize innovative tools to maintain this method. To grow margins, successful companies utilize pricing organizations. 

Creating value

Various corporations are using pricing strategies to create value for products or services. Here are some elements used by companies.

Restructuring and building organization

To help improve and optimize businesses, companies implement pricing strategies and margin management organizations.

Companies also need to build structures that allow them to gain a competitive advantage in customer behavior.

With strategizing for the long-term that targets margin growth, they can visualize success clearly. 


With the help of digital tools, businesses can make better pricing decisions.

While historical consumer data can help businesses tailor their pricing, advanced analytics can help sort data and convert it into actionable insights to their target markets.

Investing in pricing capabilities

Businesses should invest in their pricing teams for innovative pricing techniques to be sustained and implemented.

This enables teams to initiate and negotiate contracts or strategies from the beginning to end process. 

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