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Home » Why MVNOs should offer multiple payment options
The problem with only offering pre-paid
MVNOs that only offer pre-paid services face decreasing profit margins as basic connectivity becomes commoditised. These MVNOs are also likely to experience high churn rates as their subscribers shop around for a cheaper deal – in fact, in some markets, operators lose up to 80% of their pre-paid subscriber base every 90 days. However, by adopting post-paid or pay-anytime services, MVNOs can move away from their basic connectivity offering, and start to offer their customers a range of more valuable services.
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These new services could include bundles that contain subscriptions to popular streaming services, such as Netflix or Spotify, or they could include home broadband, or hardware such as handsets. They could even offer a unique reward for loyal customers that is aligned with their specific niche. For example, an MVNO that targets outdoor enthusiasts could offer discounts on the latest adventure gear, whilst an MVNO belonging to a beauty brand could offer free beauty products.
By offering additional services that go beyond basic minutes, texts and data, MVNOs become more valuable to their customers. However, this is only possible if they go beyond pre-paid and offer post-paid or pay-anytime services.
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Most pre-paid MVNOs only communicate with their customers when they need to top up and have no control over their live services, however those that offer post-paid and pay-anytime services can develop an app to provide their customers with real-time insight and control. This enables their customers to manage their spend and easily buy additional packages and bundles as and when they need them, which increases loyalty, trust and spend.
A great example of an MVNO that provides real-time insight and control is UK-based iD Mobile. iD Mobile empowers their customers to set spend limits, personalise their plans and share their balances, all via a simple app. This 100% digital customer experience results in lower operational costs for iD Mobile, as well as increased customer spend and improved loyalty.
The B2B Opportunity for MVNOs
The consumer market is fickle and has high churn rates, so MVNOs that only offer pre-paid consumer services often struggle to win and retain new customers. However, by launching new B2B post-paid and pay anytime services, MVNOs can dramatically increase the size of their of their potential market.
Of course, the ability to offer post-paid services isn’t a prerequisite for entering the B2B world, however, the more profitable B2B services, which include bundled offerings and add-on subscriptions, in addition to new services enabled by 5G and IoT, will be dependent on post-paid capabilities.
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With MDS Global, moving from pre-paid to post-paid or pay-anytime is straightforward, and your new services can be up and running in as little as 12 weeks.
Our VNOnDemand BSS-as-a-Service solution is specifically designed to help MVNOs quickly build and implement specialist tariffs and services for new operations without any risk or interference to current business systems and solutions. This serves to minimise IT costs and significantly reduces the complexity of new service introduction. VNOnDemand is easy to implement and connects to a range of payment vendors.
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Solution features and benefits
Integrated workflows and APIs
To automate business processes internally and with external solutions for end-to-end zero-touch order-to-cash and usage-to-cash management.
Operational console
So you can intuitively configure and manage the lifecycle of services and products yourself, including bulk change processes.
Convention over configuration
Unique delivery option, with best practice processes, to get you into production within 12 weeks, at low cost. Learn about our Metro approach.
Cloud-enabled
For scalable and cost-effective infrastructure management.
Complex account hierarchy management
To manage large volume accounts with personalised billing and cost-centre mirroring by department and for individual stakeholders.