Blog - Brand Loyalty in the Mobile Services Industry

Posted 13 days ago

By Venetia Price – Inbound and Digital Marketing Specialist

Throughout the 2010’s brand loyalty within UK mobile network operators (MNOs) has suffered, with regular reports from surveys and market research from the likes of WDS and TNS suggesting that circa 40% of mobile users are considering leaving their current mobile network provider and only 1 in 8 customers are likely to forgive poor customer care, service disruptions or new competitive offers.

 A Google and CEB study somewhat surprisingly found B2B customer loyalty is influenced more by a company’s brand values and trustworthiness than the actual numerical business value. The likelihood a company will partner with you if they can recognise your brand values and that brand resonates with their own values. Emotive decisions are just and, in some case, more relevant in B2B SME’s than consumers.

 An important lesson I have learnt throughout my marketing career is that your brand is not what your own company believe it to be, but is what your target customer perceives it to be! Making sure your brand represents what is important to the business customer not what is important to you. When looking to invest in your brand differentiation the first step is to review how existing customers as well as target customer perceive you and what is critical to them in their buying decision.

 The step towards becoming your own MVNO is a massive opportunity to create a whole new brand, drive differentiation and achieving customer loyalty

 For the last 10 years, mobile network brand loyalty has been a major problem compared to other B2B and B2C markets.  According to Amia Loyalty Lens, compared to other industries mobile network providers have the third lowest customer loyalty.

 Whilst this has caused a problem to the major B2B mobile network providers (MNOs) this has created a massive opportunity for new market entrants and focused B2B Mobile Virtual Network Operators (MVNOs), as well as traditional mobile resellers.

 The Boston Consulting Group has identified a shift, with SMEs rapidly becoming the dominant opportunity and mobile and fixed services accounting for up to 70% of the entire B2B market opportunity.

 This is surely shifting the advantage to dedicated SME focused B2B MVNOs that benefit from an MNO’s mobile infrastructure but can focus on the specific SMEs and verticals to whom they can truly offer a differentiated benefit.

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