Executive Summary: This Mobile Virtual Network Operator (MVNO) needed a way to elevate their growth strategy. They also wanted to increase revenue while reducing customer churn. In addition to our fintech solution, we recommended our music streaming service to generate new revenue and increase brand loyalty. Through the music streaming service, the MVNO was able to increase the average revenue per user (ARPU) by 27% while reducing churn by 47%.
Background: New to the market, the company had 24,000 customers with little marketing support. The MVNO was focused on being one of the most cost-effective solutions on the market and catered to price-conscious customers that wanted a robust phone solution without the high cost.
The Challenge: As with most new players in the MVNO space, the owner of this MVNO was concerned with brand loyalty and ensuring that their aggressive revenue projections were met. They were looking into new ways to keep their customers on their platform but knew that their target base was more price-conscious than others. They tasked us with the challenge of finding ways to increase revenue with a customer base which predominately was not interested in paying more for their wireless service.
The Solution: We recommended our media streaming value-added service as an add-on to their wireless services. They offered music streaming as a standalone service as well as a bundled product set. By offering music streaming at cost to customers on the MVNO’s family plan and at a rate that was competitively priced for those not on the family plan, the MVNO created additional value for their customers—all while establishing a new revenue stream for the company.
The Results: We helped the MVNO onboard about 12% of their customers onto the music streaming service. We also created a referral program where customers were rewarded for every new customer that signed up for the MVNO’s wireless plan. The referral program was a huge success. Each new customer averaged over three new customer referrals. This increased the company’s gross activation rate by 15%.
The additional revenue streams increased the ARPU for the company by 27%, and the added services helped reduce monthly customer churn by 47%. As an added bonus, the customer satisfaction rating for those using our bundles services was 30% higher than those who did not sign up for the services.
Feedback: The company was extremely grateful that we provided a solution that increased their revenue, loyalty, and reduced churn—all while creating additional value and satisfaction among their customers.