Executive Summary: As one of the nation’s leading businesses in the Mobile Virtual Network Operator (MVNO) space, the wireless company was concerned with their customer churn rate. The client launched our wireless enablement module and later added our fintech solution to their platform, enabling the wireless company to bundle their prepaid and post-paid wireless plans with a mobile wallet program without a monthly fee. The company had a mobile wallet adoption rate of 23% and was able to reduce their churn rate by 46%.
Background: This prepaid wireless company was a large provider of prepaid and post-paid wireless services in the US. Through multiple carriers, the company provided wireless services to agent partners, small businesses, and customers who wished to purchase government subsidized mobile services. Their average revenue per user per month was $39.45.
The Challenge: The head of marketing at the wireless company was frustrated by the amount of churn the company faced on a monthly basis. The lack of brand affinity and loyalty among customers created additional expenses for the company. What’s more, their overall satisfaction rating was mediocre with a 6.5/10, which was below industry average.
The Solution: We recommended implementing our fintech solution with mobile wallet and debit card products. The wireless company offered the fintech services without a monthly fee to existing customers and at a discounted rate to non-customers. End users were able to send funds internationally for free, pay for their wireless services, and use the mobile wallet as they would a traditional bank account. This solution especially resonated with the unbanked and the underbanked. By bundling the mobile wallet with wireless services, customers were more likely to stay with the wireless company, thereby reducing churn and increasing brand loyalty.
The Results: The wireless company onboarded nearly 23% of its 1.1 million customers onto the mobile wallet solution. And as a result of customers using the mobile wallet, the wireless company was able to reduce monthly churn by 46% for customers who bundled fintech services with their wireless plan. They were also able to increase their customer satisfaction rating from 6.5 to 8.7, over 10% higher than industry average.
Feedback: The company was extremely satisfied with the results. More importantly, the technology created a reason for customers to stay with the wireless company and made it easy for customers to send, receive, and transfer money to friends and family. Many customers without the resources to have a traditional bank account completely transformed how they utilized financial services through their wireless company. With a happy client and satisfied end users, we knew the fintech solution elevated the wireless company to a brand that provided excellent value.