Maximising Returns Through Channel Partners
2018.06.25   |   37 pages   |   Revenue Continuity

Author:
Andrew Bramley


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The traditional retail routes to market still serve mobile network operators (MNOs) well.  However, their relevance is declining and the routes that customers take to reach a point of fulfilment, be it a shop or other established channel, are diversifying.

A failure on the part of MNOs and the wider group of incumbent Market Service Providers (MSPs) to recognise this can result in lost market share and foregone revenue opportunities.  Mobile markets are heavily oriented towards prepay ownership patterns with multiple SIM card ownership common.

Acquiring new customers and retaining existing ones requires continuous re-examination of channel strategy by MSPs.  This needs to cover not only the acquisition of new customers and fulfilment but also how the MSP reaches those customers throughout their lifetime and stays relevant in its target markets.

This report examines the range of channel choices available to MSPs, enabling them to consider alternatives from, and augmentation to, more traditional retail channels. It covers the changing environment to which MSPs’ channel strategies must respond, followed by an examination of customer channel choices and touchpoints from social media to agent-based sales.  Consideration of partnerships is a key factor and the report considers the likely effectiveness of channel partners as much as the choices available.  It is illustrated with examples of practice and the environments in which individual channel strategies can succeed, as well as how they might fail.

The range of strategies under consideration takes in the scenario where the MNO may cede customer control to the Mobile Virtual Network Operator (MVNO).  With the ongoing separation of many MNO operations from their radio networks through models such as network mergers and tower sales, the report considers the outsourcing of the customer relationship as part of a wider channel strategy and not just a wholesale business.

Those MSPs without an optimised channel strategy addressing the behaviour of their key customer segments face a growing threat to both their acquisition and retention of customers.  The report provides an optimisation toolbox.

 

Companies: Apple, Argos, Bharti Airtel, British Telecom (BT), CSL, Everything Everywhere (EE), Facebook, Hong Kong Telecom (HKT), Huawei, Hutchison 3, Lycamobile, Lebara, Microsoft, Orange, Sainsbury, Samsung, Smartone, Sun Mobile, Telcel, Tigo, T-Mobile, Twitter, Vodafone, 

Countries: Hong Kong, India, Kenya, Nigeria, Rwanda, Saudi Arabia, Uganda, United Kingdom, USA,

Keywords: customer relationship, e-SIM, digital, store, promotion, m-commerce, consumer, m-agri, outsourcing, mobile commerce, website, purchase behaviour, online, channel, partnership, channel strategy, dual SIM handset, multiple SIM, smartphone, channel partner, social media, sales, customer experience, agent, e-commerce, MVNO, mobile money, pop up, retail, IPN, instant payments notification hub, multi-SIM, channel strategies,

1

Overview

1

2

Introduction

2

2.1

Background to the Report

2

2.2

Report Content

2

2.3

Currency and Conversions

2

2.4

Further Questions and Feedback

3

3

The Changing Mobile Market Environment

4

3.1

Mobile Market Saturation

4

3.2

Increasing Multiple SIM Ownership

5

3.3

The New Challenge for Mobile Incumbents

7

4

Physical Retail Presence

10

4.1

The Store

10

4.1.1

Operating Outlets in Partner Stores - EE

11

4.1.2

Retail Channel Experience – Hong Kong Telecom

13

4.2

Physical Presence Without the Store – Agents

15

4.2.1

Fit-for-purpose Existing Agent Networks

17

4.2.2

Service Presence Within Communities

18

4.3

Retail Presence Conclusions

18

4.3.1

The Need for Control of the Customer Experience

19

4.3.2

Agent Remuneration Considerations

19

5

Growth of Online and Digital Consumers

21

5.1

Third-party Roles

21

5.2

Online Purchase Behaviour

21

5.2.1

Awareness

22

5.2.2

Consideration

22

5.2.3

Conversion

23

5.2.4

Evaluation

23

5.3

Emerging Online Channel Partnerships

24

5.4

Social Media

25

5.4.1

Facebook

26

5.4.2

Twitter

29

5.5

Conclusions

30

6

MVNOs

32

6.1

Background

32

6.2

Hong Kong Telecom and Sun Mobile

32

6.3

MNO Competition for MVNO Business

33

6.4

MVNO Success Criteria

34

7

Strategic Channel Partner Framework

35

8

Recommendations

37

 

Appendix – Feedback Questions

38

Our Clients

A valuable program, differentiated by its best practice case study approach. Many external providers supply regular updates on MNO KPIs, but it's how operators are approaching these issues we want to know about Orange Group
Mobile Market Development 2015