Why MVNOs have a natural advantage in the customer experience game

Why MVNOs have a natural advantage in the customer experience game

While using the customer experience to differentiate your offering has been a strategic idea in the mobile market for some time, many communication service providers (CSPs) still do not understand what this means in its entirety, or lack the means or the understanding to deliver on their ideas.

Natural Advantages

MVNOs should have a natural advantage over MNOs in this area. They have identified customer needs and are organized in a way to meet the requirements of a discrete niche, and should therefore be highly customer-focused. Some MVNOs recognize that there are still ways in which they can improve performance in order to better understand their customers and how they are using their products, even though they may use segmentation to good effect, or have focused on a distinct niche.

What are the differentiators?

According to Telesperience’s recent research into the MVNO market, various aspects of the customer experience have been identified by MVNOs as differentiators, for example, better customer service (67% of MVNOs). However, while appropriate and efficient customer support is vital, customer experience factors extend far beyond support services. There are clear opportunities for MVNOs to create a far “stickier” and compelling experience by better targeting of prospects and through a greater understanding of their customers.


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Some MVNOs have identified the importance of better customer understanding and the impact it will have on their business. According to the Telesperience study, approximately four out of ten MVNOs (42%) said that this was a key growth strategy for their business, and that it would enable them to develop more compelling products, offers and bundles that better meet their customers’ needs – plus it would also help them sell more effectively. This would attract new customers, as well as enable them to upsell and cross-sell to existing customers – building higher ARPUs and more attractive margins at only a modest cost to their businesses.

In all, these approaches to a better customer experience will create a win-win scenario for MVNOs. By retaining more customers and, even better, selling more to existing customers, MVNOs will not only grow top line revenues but also build bottom-line margin to deliver a far more attractive proposition to owners and investors.

ToTo find out more about the MVNO market and how MVNOs can utilize key growth strategies, click here to listen to the full 1-hour webinar recording. Learn more, download our complimentary MVNO Market Review 2015-16 white paper.

Why MVNOs have a natural advantage in the customer experience game