I wish all MVNOs did that – 10 ingredients for winning a deal
It’s always nice to get instant feedback on a masterclass. Today’s highlight came from an MNO who said, and I quote, “I wish all MVNOs did that”.
Their point was that MVNOs don’t have a structure for putting forward a proposal to an MNO. Much of that has to do with commercial naivety. But a lot has to do with the core proposition.
Fundamentally, when you approach an MNO you must have a clear story about why you are in business. Yes, you intend to make money, but how will you change the world? Why should we care? Can you articulate how you will attract customers, and explain how you will keep them?
Our opening class today was on differentiation in crowded markets. Erick O’Connor and I set out the ingredients for success and highlighted the brands getting it right from Better Life, through Redbull, to Equitel. They have answered these questions above brilliantly. And based on the feedback we received today, it’s important any MVNO in its infancy, or for the brands thinking of branching out, take note.
Get your story right and you’re halfway to getting a deal. It puts you in a stronger position to put forward realistic forecasts on what you will achieve, by when, and how you will add to the MNO’s incremental revenue.
So, what 10 things make up the story?
Target a specific customer segment or niche. This isn’t ‘target millennials’. Rather it’s to target Formula 1 fans, or target students living abroad. Know this segment inside out – what makes them tick and how can you appeal to their lifestyle?
Leverage Your Strengths. Got a retail estate? Use it for distribution. Have a loyalty scheme? Use it to win your first customers. The point is, you will have assets that others don’t and ones that can lower your cost to market, or make you stand out from the crowd.
Solve a problem. Can you lower someone’s monthly outgoings so they have more to spend on life’s little luxuries? Can you help people pay one bill for all their utilities? Can you help a council keep track of its assets across the city? Give people the answer.
Communicate to your customers. Don’t assume that if you build it people will come. They won’t. Instead have a simple message and keep it consistent, and repeat it, repeat it, repeat it.
Differentiate the customer experience. If your target customer typically communicates online, then an in-store service model probably isn’t right for them. And vice versa. If you use a digital sign up process, make it three clicks not 54. If you get it wrong, then all the effort to communicate your brand is worthless if the experience is poor.
Use price cuts sparingly. If cutting price is the only way to attract customers at the expense of margin, then you have a fundamental problem with the position. Make sure the value you offer goes beyond price.
Don’t be a copycat. The MVNOs that thrive, offer something people want, and no one else offers. Know your target market size, the potential share you can take – you’ll have more realistic growth forecasts that an MNO will take seriously.
Keep it simple. Don’t be tempted to launch all your ideas at once. Build traction with the core proposition and then add the extras that will help your brand evolve.
You’re a marginal business. Any promotion or change to proposition needs to modelled according to your wholesale model and the insights on trading to date. Cost everything carefully.
Don’t launch and leave. Invest always. This doesn’t need to be costly above the line advertising. It can be a more economical investment in selling more to existing customers or giving them more value.
These tips are part of a series of masterclasses that look at differentiation, agreeing a win-win deal with an MNO and commercial modelling. The classes were included in the delegate pass thanks to sponsorship by Pendula and .
Over 200 people attended the sessions. If you weren’t there but think your team would benefit, then drop us a line. We’d be happy to deliver a class to suit the skills gap you need to close.
