Are you a Service Provider searching for value? It’s probably right in front of your eyes!
Searching for value by increasing revenue and profit is a key challenge confronting operators globally. Too many spend too long thinking about services that might be interesting, only to find that an alternative, OTT provider already offers something similar and has captured market share. Instead of such blue-skies thinking, operators should work with what they know. Selling services to business users makes more sense, adds new incremental revenue to existing bundle charges and is far less of a strategic leap in the dark.
There’s a lot of talk in the industry today regarding how operators are searching for value, to increase their revenue and profit. This results in some serious thinking, occupying the thoughts of many strategic consulting firms.
Can an operator increase prices by adding a particular service to its portfolio? Can it come up with an entirely new offer that can be marketed as a separate service for an additional fee? Or, will the addition of a new service have an impact on customer retention, with the result that revenue is protected and losses averted? All outcomes are desirable, of course, but they offer corresponding levels of uncertainty.
Inevitably, this leads to some bright ideas but it also creates inertia. Moreover, clever thinking often leads to complex ideas. However, there is another approach that can be taken, one that’s much simpler and can provide a strategic path that’s easy to follow and easy to achieve.
That’s because an operator’s existing customer base often contains hidden opportunities that can, in turn, generate new value. It may be a truism but, despite this, it’s well known that it’s easier to sell to your existing customer base, if only you have something interesting to offer. Instead of trying to outthink alternative providers of app-based services, why not focus on what you know and invest more in better servicing the needs of existing customers with products that actually meet known needs, rather than with highly speculative offers?
For example, most operators have a large number of business customers, but many only really offer them basic services such as voice, connectivity, data and messaging. They simply dress up these offers in bundles that are presented as being specific to business users but, in reality, are little different from those available to consumers. Simply calling something a business product doesn’t make it one. In other words, many operators market business services but the fact is that they don’t really provide much substance for them.
However, if instead of simply creating packages, operators think about real services that will add value to business users, they can more easily target them to the existing customer base. For example, business users are increasingly shifting business processes to the cloud. This includes office communications. As such, operators seeking value should really be focusing their efforts on products they can easily sell to existing customers.
One such service is mobile unified communications. Movement to the cloud creates the opportunity for operators to deliver enriched communications services, such as Mobile UC, which can be added as a new service on top of any existing bundled offers. It attracts monthly revenue, provides useful capabilities from which business users benefit and does not require the creation of any radically new service. Instead, it leverages existing capabilities and assets, simply through the addition of an appropriate UC package.
Surely it makes more sense to try to upsell proven services to business users? Instead of searching for opportunities in unknown areas and for unknown needs, the answer is probably already in sight – look at your existing business users and give them more. If you want to understand how to do this, what the potential could be, and how to get to market, talk to us?