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Consumer Market Distribution Strategies and Best Practices

Our research reveals 8 key challenges that mobile operators face in their efforts to drive increased ARPU, profitability, customer satisfaction and retention. These challenges are highlighted below. The key initiatives operators are undertaking to address these challenges are presented in detail within the body of this report:

• Evolving distribution structures and channel mix
Operators are increasingly utilising alternative channels to cost effectively market to new customers and cross sell to existing customers. In addition, partnerships with branded labels are proving a successful new channel to market. In terms of channel mix operators are driving increased sales through their own stores and the web. Leading operators are deploying strategies to optimise channel investment, performance and achieve the optimum channel mix.
• Transition from a Sales to Service Model
There is a clear transition in investment from indirect to direct stores (including franchises). Stores are becoming increasingly interactive and informative with touch screens, demonstrations and literature. In essence, operators are attempting to find the optimal balance between sales (e.g. voice focused selling of boxed phones) and service (e.g. enhanced services, demos, repairs) which are focused on higher value consumers.
• Improved Consumer Targeting through CRM, segmentation and cross-selling tools
As mobile products grow in number and become increasingly complex, they become more difficult to sell. Operators are increasingly focused on understanding customer purchasing patterns, needs and usage profiles to increase the success of cross-sell initiatives. Cross-selling is evolving to include a portfolio of tools including push SMS and MMS, self-service portals, voice portals and channel tools. The focus on niche segments and individual subscribers is helping to focus cross-sell campaigns.
• Deploying Outsourcing Initiatives
Operators are increasingly exploring options to outsource additional functions to third party specialists. Most operators start with product distribution as the first step in outsourcing. Outsourcing to these companies provides operators with a number of benefits including decreased costs, an expanded indirect channel network, and specialized expertise on distribution best practices.
• Multi-Component Commission Structures
Commissions are evolving to include a wide number of components. The commission structures identified may be classified into the following categories: upfront, activation, volume of connections, percentage of airtime, customer tenure, upgrade, channel type, churn performance, type of handset, length of contract. The commission structures vary along the distribution chain with distributors determining the particular commissions a dealer is eligible for and applying them appropriately.
• Empowering the Channels
Leading operators are deploying a number of initiatives to empower direct and indirect stores and inbound call centres. Key empowerment initiatives include: cross-sell/upsell tools to promote upgrades and VAS; a wide range of staff training tools and events; channel management programmes which provide support and funding based on grading schemes; and independent store portals to provide easy access to tools, training and customer data via web and intranet.
• Empowering the Customer
Operators are deploying a number of initiatives to empower the customer to make purchasing and account management decisions. Key empowerment initiatives include: the introduction of online activation & purchase tools; self management tools for telecoms consumers; presales tariff optimisation tools to enable consumers to subscribe to the most economical tariffs; and communities and forums to enable users to have questions answered quickly and effectively
• Developing prepay focused initiatives to drive ARPU and Retention
There are a wide number of methods operators are using to build a detailed profile of their prepaid bases, such as competitions, financial and airtime credits, and other incentives. This is enabling operators to improve segmentation and targeting. There are also a number of loyalty initiatives targeted at high value prepaid subscribers including those based on network performance guarantees, tenure with the operator and airtime used.

Price: EUR 2,500.00 / GBP 2,000.00

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1
Overview
1
2
Distribution Trends & Strategies
3
2.1
Key Distribution Challenges and Themes
3
2.2
Distribution Structure and Optimal Channel Mix
4
2.2.1
Traditional Distribution Channels
4
2.2.2
Emerging Distribution Channels
5
2.2.3
Consumer Channel Mix
6
2.2.4
Operator-owned/Franchised Stores vs. Independents
7
2.2.5
The Impact of Mobile Number Portability (MNP) & MVNO New Market Entrants
9
2.2.6
Market Level Optimal Store Strategies
9
2.2.7
Co-branding Partnerships
10
2.3
Store Evolution
11
2.3.1
Transition From a Sales to Service Model
11
2.3.2
Service Model Case Examples
12
2.4
Store Design, Layout and Interactive Features
13
2.5
Focused Consumer Targeting/Segmentation
14
2.5.1
Overview
14
2.5.2
Deployment of CRM Tools
14
2.6
Innovative Cross-Sell Initiatives
14
2.7
Operator Outsourcing Initiatives
15
2.7.1
Outsourcing Overview
15
2.7.2
Outsourcing Players
16
2.7.3
Outsourcing Deep Drill and Emerging Trends
16
2.7.4
Key Drivers and Benefits of Outsourcing
17
2.7.5
Key Pitfalls of Outsourcing
18
2.7.6
Outsourcing Case Examples
18
2.8
Multi-Component Commissions Structures
20
2.8.1
Commission Structure Overview
20
2.8.2
Key Commission Trends
21
2.8.3
Clawbacks
22
2.8.4
Commission Case Examples
23
2.8.5
Non Traditional Commission Payments
25
2.9
Empowering Channels
25
2.9.1
Overview
25
2.9.2
Sales Tools
26
2.9.3
Dealer Portals
27
2.9.4
Channel Training
28
2.9.5
Staff Incentives
29
2.10
Empowering Customers
30
2.10.1
Overview
30
2.10.2
Online Activation and Purchase
30
2.10.3
Self-Service Portals
31
2.10.4
Tariff Matching & Optimisation Tools
33
2.10.5
Online Communities and Forums
36
2.11
Prepaid Segment Initiatives
37
2.11.1
Overview
37
2.11.2
Consumer Profiling Through Consumer Touchpoints
38
2.11.3
Case Examples
39
2.11.4
Consumer Profiling Through Understanding Usage Patterns
39
2.11.5
Prepaid Loyalty Initiatives
40
3
VAS Landscape
42
3.1
Overview
42
3.2
VAS Focused Channels
42
3.3
Commission Structures
43
3.4
Outsourcing
43
3.5
Consumer Education
44
4
The MVNO Landscape
45
4.1
MVNO Overview
45
4.2
The Typical MVNO
45
4.3
Saunalahti - Finnish MVNO Case Study
46
4.3.1
Saunalahti
46
4.3.2
Brief Overview of Finnish MVNOs
49
4.4
Impact on Incumbent Operator Strategies and Revenues
50
4.5
Case examples: Danish Discount Operators - Telmore and CBB
51
4.5.1
Overview
51
4.5.2
Virgin (UK)
51
4.6
Threat or Opportunity?
52