HOW TO DIFFERENTIATE YOUR OFFER IN A COMPETITIVE MARKET

No one ever goes out to buy an MVNO SIM

Why your brand has to differentiate to win customers

We’ve often looked at the MVNO in a box market at MVNO World. As a reminder, it’s the model of ‘build once, deploy many’. It works by creating an MVNO digital platform with all the digital systems and network connectivity needed to make a mobile operator viable. It’s then made available to multiple MVNOs to plug into. It’s a quick and efficient way of standing up an operator without the usual levels of financial investment.

It’s with good reason that it’s a hot topic. According to Juniper Research, global revenue from MVNO in a box is projected to surge from $310 million (October 2024 market figures) to over $1 billion by 2029. Businesses in finance and retail segments are likely to make up a large proportion of the new launches.

Juniper’s predictions are astonishing. Effectively it’s the equivalent of a three-fold jump in five years. But the numbers shouldn’t surprise you. Launching an MVNO is the future for mobile. Digital technologies have made it faster and easier to get to market. Plus, there’s still room for new entrants in just about every market around the world.

But, no one ever goes online to buy an MVNO SIM. Consumers need to be persuaded to choose your brand, and clearly see that their loyalty will be rewarded. Going with an out the box MVNO solution, will help you get your idea off the ground quickly, because you can use existing platforms and operator agreements to put the operational and network elements in place without the need to invest huge sums in CAPEX.

However, it won’t make you money unless you stand out. Your proposition has to be unique, your service promise has to deliver something special and your offer needs to be original. It’s the only way to drive growth and engagement.

In our masterclass on differentiation, we emphasise the notion that MVNOs are not so much mobile operators, but marketing machines, using someone else’s infrastructure to pitch something new, fresh and tailor made for a customer segment.

With years of consumer research on my side, I know that people join operators after doing their homework. They often set out with a specific need in mind, and look for providers that don’t just answer the problem, but give them something a bit different. They’ll also consider brands that tie in with something they already do. The grocery segment is au fait with this type of shopper, which is why the big grocery brands don’t just help you budget for the weekly shop, but give you perks when you also get home insurance, holiday money and mobile deals from them.

So, if you are buying an out the box, white label service, how do you differentiate?

The answer lies in knowing what your customers value. Taking the retail example again, if you have a loyalty scheme then you are sitting on a gold mine. You can use the behavioural information to develop a telecoms offer that delivers more of what they love. For example, better value loyalty rewards that non-mobile customers can’t access. In the UK, Superdrug Mobile is a great example of this. Mobile customers get VIP loyalty treatment, that you otherwise would have to earn as a non-mobile customer.

If you know who your VIP customers are - something banks are highly aware of - then there’s huge scope for differentiation. Mobile might be a small portion of the spend, but if launching an MVNO keeps the customer sticky and more inclined to try the more lucrative retail banking services, then it’s hard to argue against it. Revolut does this well. Launching eSIM and roaming as a complementary offer to its payment services.

Similarly, communities, such as football club fans, can use their unique insight on membership to create compelling MVNO offers that includes exclusive content, chances to win signed merchandise, or meet and greet players.

This is such an interesting area of the market, and one that is likely to grow significantly. Football clubs are global brands with international communities. In this case the offer doesn’t need to be unique to territories around the world, it just needs to have universal appeal to the fan base.

MVNA / MVNE and MVNO in a box service providers know all this. It’s why they exist. So study the brands they host and work out the formula that will work for you. Look at the markets they operate in, which sectors are growing, where’s there room for change? What can you offer to meet new consumer trends?

If you want to short-cut the research and get some ready made inspiration, then come along to our Masterclass at MVNO World this year. It’s such a popular topic that it was standing room only last year.

You’ll learn about the strategies being employed to differentiate, understand the vital ingredients successful brands have in common, and leave knowing why it’s important to develop your own magic recipe.

The masterclasses are free. Find out more below, and book your pass and place today.