How retail giants enter the mobile world of MVNOs to generate revenue and reduce churn

Well established retail brands, like Tesco, Woolworths and Walmart, are rolling out mobile telco services to strengthen and rejuvenate their brand positioning, while boosting customer loyalty. Why would a big-name consumer brand want to offer a phone service, though? Isn’t that very far from its main business?

Welcome to the world of the Mobile Virtual Network Operators (MVNOs)

Here, banks, utility companies, travel and retail brands—literally any enterprise—partner with either established providers or intermediaries to offer attractive mobile phone subscriptions branded with their logos to key target groups.

“Launching an MVNO has a number of benefits for retailers as it can be used to leverage their shops, their online presence, and their distribution capabilities. At this time, new opportunities are opening up for retail mobile virtual network operators (MVNOs), including a better understanding of consumers or the improvement and optimization of the retail experience.”??

–??Detecon Consulting

Establishing an MVNO offer is becoming increasingly popular in the boardroom of retail brands. Globally, more than 220 million customers are connected through an MVNO and the overall market is expected to be worth $103 billion by 2023. Clearly, something’s working here.

It’s an eminently sensible move if you’re looking into significantly reducing customer churn. In the European energy market, for example, as many as 15% of customers change suppliers every year and as the average spend on energy per month is easily over €100, losing that income can be painful. Offering a mobile proposition can make a significant dent in these numbers, stemming losses and building a more loyal subscriber base.

As a result, more and more utility companies are looking to offer great phone service to maintain loyalty. Could it make sense for your brand to do the same?

Well, only if you too want to attract new customers, fight client turnover, boost customer engagement and deepen brand loyalty!

So now you know the ‘why’ of MVNO.?Learning from success: why you need to go mobile to boost loyalty, reduce churn and ringfence important revenue, a new free downloadable resource from MVNO delivery experts Enghouse, will show you the ‘how’.