What’s your market strategy for B2B?
With voice revenue set to decline by 45%, telcos face stark choices. They need to think about how they can replace this with new revenue streams, which means developing new strategies. What’s your B2B strategy and how will you deliver it?
According to some theoreticians, there is a finite number of strategies that a service provider can adopt; everything else is just a variation on a given theme. The famous Ansoff Matrix shows how risk increases with diversification and new market entry, but it can basically be summarised as “selling more stuff to existing customers is easier than coming up with entirely new things for new customers”. However, while one approach may be more difficult than another, the hard choice is often the right one.
All of which makes perfect sense, of course. Now, this isn’t a business school case study, but the fact is that, as we noted in a recent post, for most telcos, there is a significant opportunity to sell more things to existing customers. That’s because many have large numbers of small and SoHo business customers hidden in their retail customer base, due to the way in which they classify business customers.
Of course, a parallel approach is to provide a value-add service to existing and known business customers – such as a mobile office solution, for example. Or, to extend a service by the addition of new capabilities, such as a unified switchboard that connects fixed and mobile devices.
Alternatively, and at the other extreme, a telco can seek to target a whole new customer base, by switching from retail to business customers, with an appropriate and differentiated offer. Given that voice revenue is predicted to fall by as much as 45% by 2024, it would seem sensible to find steps to replace this with new revenue streams – and business customers are a better bet than trying to deliver unproven consumer services that will, in any event, soon face competition from providers of free services.
There are multiple options but telcos have to choose. Quickly. With existential threats to revenue growing every month, inaction is not an option. The strategy you choose depends on your current situation, your current portfolio and the threat from competitors. Decisions have to be taken and, while selling more things to customers you already have is the easiest option, it’s not necessarily the right choice.
At Gintel, we help telcos make these choices. We can assist with the evolution of a service portfolio that is optimised to support your chosen strategy. Whether you want something new to upsell to existing subscribers, or an entirely new service to target new markets, we have the expertise and capabilities to help. And, we can make it easier to extend market focus with new propositions, due to the proven nature of our solutions.
So, if you are wondering how to counter the threat to existing revenues, you’re asking the wrong question. What you should be doing is trying to target new revenue, according to tried-and-tested market strategies – and with proven solutions. Now’s the time to act. Get in touch with our team, discuss your situation and environment and we’ll help you define the right offer, targeted to the right customers and with the right capabilities to succeed. We’ve been doing this for years. If you are attending MWC this year, why not meet our team?