Abstract
In mature well-penetrated mobile markets, changing market dynamics are forcing
MNOs to reassess and adjust their channel mix. Market reach continues to be a
key objective in Mobile Operator Distribution strategies but this is
increasingly counterbalanced by the desire for increased channel control (more
direct channels), reduced SAC/SRC, improved cross/upselling performance and an
extended customer life expectancy.
The current report shows how operators are looking to increase the share of
directly controlled (brand exclusive) channels and improve the customer
purchase experience by ensuring more purchases through assist rather than
' non-assist' channels. In parallel, operators are looking to increase Online
sales. While most operators believe the ceiling for online sales rests at
15%-20% of mobile connections, we present a case illustration of best industry
practice in the current report demonstrating how one operator is achieving 50%
of sales via this channel. In a separate case illustration we show how another
operator has reduced its predominantly prepay acquisition and retention costs
by almost 40%, while adjusting its channel mix.
While the current paper focuses on motives and outcomes achieved through
channel rebalancing initiatives, it also provides details of channel
performance improvement initiatives identified during our discussions with
MNOs. The paper closes with a series of conclusions and recommendations which
will be of specific interest to those tasked with optimising the mobile
distribution channel mix.
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