Understand them first, then deliver the right offers to meet business goals.
Over the years, researchers have tried to make a direct, causal link between customer loyalty and company profit, but it seems the results have been mixed. Recent research from MIT Sloan sheds some light on the situation and provides some guidance for MVNOs that seek to use customer loyalty as a tool to drive business growth. Findings suggest that happy customers are loyal customers, though they don’t necessarily spend more money or are more profitable overall.
While there may be many reasons for this, it’s clear that MVNOs need to take steps to encourage even the most loyal customers to spend more. However, they also need to do so profitably, so that these steps do not become a drain on resources. In other words, they need to be able to upsell services and offers while doing so cost effectively.
Several things are required to achieve this. First, MVNOs need to be able to identify and classify their customers – for example, they need to know which are profitable (and happy) and which are less profitable (who may still be happy), those that are neither profitable or happy, and so on. The ability to segment the customer base and to understand their value to the business is key.
Armed with this information, MVNOs can next consider how they can fine tune offers and then present them to the desired customers. This requires the ability to be able to quickly generate new service offers, upgrades and packs, which can then be delivered to the target groups. It would make sense to target less profitable but happy customers (based on length of term, responses to satisfaction surveys and other measures) with an offer that could boost revenue. Similarly, it would be great if an MVNO could also target the most profitable customers (who clearly have an appetite for spending) with yet more offers that match their needs.
This kind of rewards programme is fundamental to the success of an MVNO. It requires insight into customers, the ability to interact with them and the ability to tailor offers to specific target groups. Of course, it’s not just loyal (or less loyal customers). It may be that there are those who behave in a particular way – making more calls to specific country destinations, for example, or accessing certain online services.
The trick is to understand your customer base and to present them with something timely and relevant. That’s why Digitalk Mobile Cloud has advanced campaign and offer management, all linked to the CRM. This allows rich subscriber profiles to be created, categorisation into clearly identifiable groups and the agile creation of offers that can be used to meet different goals. It means MVNOs can develop a highly granular approach, but without the overhead of doing so that reduces the benefits of such activities.
If you are an MVNO and want to be able to truly understand and engage with your customers, you need the right tools. Talk to Digitalk to find out how this can be accomplished, profitably and quickly, with Mobile Cloud.