The micro enterprise opportunity – capitalise on a flexible portfolio to succeed
Micro enterprises are a significant but overlooked segment of the business market. Defined as having 10 or fewer employees, many operators regard them simply as consumers and make no effort to target them with useful services. But, with challenges to revenue growth mounting and new competitors emerging, eager for their business, it’s time for a different approach.
It’s well known that the smallest companies, or micro enterprises make up a significant share of employment worldwide but they continue to be neglected by many traditional operators. Many MNOs treat such companies – those with 10 or fewer employees – as consumers and do not tend to offer them additional services or value. Now, a recent article from research house Analysys Mason rams home the point – operators “should consider targeting micro enterprises in order to sustain and increase enterprise revenue”.
Analysys Mason points out that micro enterprises constitute 40% of the workforce in many countries but contribute less than 20% of operator revenue. Of course, the reason for this is that most operators choose not to pursue small companies, preferring to target their efforts at larger corporate accounts.
But, if a customer is already consuming connectivity, data, voice and messaging from a provider, why wouldn’t that provider try to offer them something more? After all, as Analysys Mason point out, operator revenue from traditional services, such as voice and data is continuing to decline – and yet the very same customers are eagerly adopting new ICT services. So, charitably speaking, it’s a missed opportunity – and, worse, it’s almost deliberately neglectful. After all, data regarding business populations is readily available and has been for many years.
Aspirations for growth need to be clearly aligned with opportunities. The sizeable and yet neglected opportunity to target the micro business segment with more than basic connectivity (for which there are diminishing returns) represents a clearly defined and reachable target. What’s needed is the right proposition.
As Analysys Mason add “Operators already providing voice and data connectivity services to this segment are well-placed to gain significant market share if they can deliver suitable off-the-shelf products and services and can adapt their sales channels and customer support appropriately.”
So, what do such off-the-shelf products look like? Well, it’s important to realise that there isn’t just one solution that will provide the magic ingredient. Rather, operators and MNOs need a suite of solutions that they can offer – ranging from off-the-shelf service options, as suggested above, all the way to more complex solutions that can be easily tailored to meet new requirements.
That’s where we can help. We have a range of what we call micro business services, which allow operators and MNOs to meet the needs of even the smallest company. It’s a comprehensive portfolio, which means that off-the-shelf solutions can be provided to different companies, while presenting options to enable different needs to be accommodated. If you would like to obtain a portfolio of attractive services that will allow you to effectively target micro businesses, why not download our briefing paper to find out how?