When the third and fourth mobile operators enter the fray, dealer network costs gain greater importance for incumbent operators. On the revenue side, voice and data plans are steady or on the decline as consumers receive ever more for less. Yet, every mobile telecommunications company sits on a mountain of data waiting to be monetized within the constraints of the law.
Insight and Implementation
Most providers assign “lifetime value” to their customers – but not to their dealers. How could the company gauge value other than gross revenues or activations? Where should sales support dollars go for maximum returns? How could the field staff take responsibility for high returns on the portfolio of stores?
In this case, we crossed the boundaries between sales and marketing, targeting marketing dollars based on location value. We facilitated the shift from brand and campaign advertising to a sharper focus on sales channels, by prescribing action for the portfolio.
The client produced a plan to reduce distributor and dealer channel costs by 9% to 13% and direct marketing spend by 15% while retaining its most valuable distributors.