Checklist: 10 Bottom line boosters for mobile carriers
Traditional revenue streams just don’t cut it. In many ways, the last decade has changed how carriers make their money. Rate plans, data packages, handset sales, and the sale of small accessories have provided just enough revenue to keep carriers afloat.
With the cash crunch our wireless partners have been experiencing, we’re always looking for new ways to help out. Our latest? We’ve created a checklist of ten easy ways carriers can really help boost their bottom line. It’s divided into three parts: revamping current programmes to make them profitable, capitalising on emerging areas, and discovering new opportunities.
Follow along, and mark which tips you’re planning to take advantage of, then check our scorecard to see how your efforts stack up.
We know what you’re thinking, ‘Handset protection might serve my customers, but it’s not a revenue stream.’ Really? Why can’t it be both?
If you’re one of our carrier partners who’s already discovered that it can be, we’ve got even better news: there are still things you can do to make the most of your programmes.
How many of these opportunities are getting addressed within your business?
1. Training support to improve attachment rates
If your sales team isn’t receiving regular training on how to sell handset protection, you’re missing out. And it’s not just new hires who need the 4-1-1. Everyone on your team learns at his or her own pace and can glean something new from proper training every time. Plus, by providing the right balance of teaching vs. training— to build skills and knowledge—you’re bound to see a boost in that attachment rate.
2. A protection plan that provides value
No matter how skilled your reps are, if the customer can’t justify the price versus the services they’re receiving, you’re dead in the water. Make sure your handset protection partner is delivering real value by providing benefits beyond simple handset protection.
3. Specialised pricing that creates revenue
Each mobile carrier, and their customer base, are unique. So, shouldn’t your pricing be? Fortegra looks at several factors when determining pricing for carrier clients. Your device mix, database, plans and fulfillment options, and customer software usage all come into play along with our own historical data. Once we have added these metrics to the mix, we work with you to set a price palatable for consumers that will also bring you additional revenue.
4. Reduced costs and resources
From running manual reports to call center reps dealing with angry customers, your current programmes could be eating up valuable resources. How are you accounting for these resources? Every report and every call costs you money. Find a programmes that helps relieve the burden of these costs, benefiting both your team and your bottom line.
Are we talking about cases, screen protectors, and ear buds? Well, no. Not exactly. Carriers have become pretty accustomed to selling those small accessories in an attempt to rev up average revenue per transaction. And let’s be honest, most have gotten pretty good at it.
But here’s the thing: if that’s all you’re doing, you’re leaving cash on the table.
Here are a few tips to help maximise what’s become a real growth area in wireless.
5. Fresh, high-end accessories
Yes, they take up space. Yes, they are expensive. But consumers want them. Did you know that by 2018 the wearables market is going to reach 172 million units sold? What about the fact that Bluetooth speakers have a 38.7 percent growth rate right now? And don’t forget about headphones—an estimated 340 million units were sold in 2016. These are serious numbers. So, just where are your customers buying these items? If it’s not from you, then you’re missing the boat.
6. Big-ticket dropshipping
Your stores only have so much room—and premium accessories come in a lot of colors. That’s why there are partners that provide dropshipping options. It allows smaller retail locations to offer models, sizes, and colors needed to meet unique consumer demands without the inventory burden.
7. Accessory protection
Customers can’t live without them, and the prices keep climbing. You’ve got protection for handsets that cost only a few hundred bucks, so why not offer coverage for the $300 headphones or that $500 smartwatch? Accessory protection plans are a great way to boost revenue per unit and an excellent value for your customers.
New non-inventory SKUs
Is there anything better? Products that bring in additional revenue, provide value to customers, and don’t take up any shelf space? Talk about a win-win-win!
Fortegra is always looking for more products, like these, to help partners and consumers Experience More. Check them out below to see what you’re already offering, and what’s new that could be a great fit for your customers.
8. Wireless involuntary unemployment insurance
Brand new to the carrier space: insurance for the customer that helps them when they need it most. Say a customer loses his or her job— Fortegra will pay their wireless bill for a period until they get back on their feet. A double benefit to carriers? Additional revenue from another non-inventory SKU and customer bills are still getting paid, keeping subscribers active even after job loss. Sounds great, right?
9. Additional protection bundles—Home appliance and consumer electronics Depending on other services you might be providing, there could be protection packages to go along with them. The more insight you have into the things your customers use, the more options become available on other non-inventory protection SKUs. For example, our appliance bundle could be great for new customers who just moved to a new area and inherited appliances.
10. Enterprise protection solutions
Business customers can provide a nice bump to any bottom line—but make sure you’re offering them services to match. No business is going to want to pay individual rates for handset protection.
Why not offer something better, something that fits their needs? A plan that allows business customers to pay one price, to cover all their devices, a pool of claims, and offers the flexibility to make sure they keep their teams connected—who offers programmes like that? Not many… but one partner comes to mind.
Tally ‘em up and see how you did!
You’re ahead of the game and taking advantage of non-traditional revenue streams. We’re guessing you don’t have all 10 yet, so be sure to keep the pedal to the metal to really grow the business.
It hurts to be this good. Now you have to come up with something else to pitch your boss.
Your organisation has to recognise the need to diversify. You’ve started to take action, but still have even more room to grow.
Competitors are starting to take advantage of these items, too. If you want to keep up, you’ll need to do more than just recognise the need to expand.
You’ve got a strong core business that’s keeping you afloat, and a ton of opportunity to really improve the bottom line.
You’ve got some serious work to do to catch up. We suggest looking for a new partner that can give you a hand.
There’s one common theme among all the ways to improve your bottom line in 2017: partners can help.
You can’t do all this on your own. Look for collaborative companies who will create new ways to increase your revenue. Eight of our ten tips we, here, at Fortegra can help you with—and we know folks who can deliver on the remaining two. If you’ve got programmes that you like or methods that work, fantastic. But we don’t want you to have a programmes that just works; we want you to enjoy programmes that win.
For more information visit fortegra.com/carrier
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