Are Business Leaders Missing a Trick?

MVNOs are a convincing model for effectively digitising enterprise customer bases.

By Daniel Swart

In today’s fast-evolving digital economy, it’s becoming increasingly clear that Mobile Virtual Network Operators (MVNOs) are no longer just telecom alternatives but are emerging as powerful brand-building tools. So, are CMOs and business development executives missing a trick by not integrating MVNOs into their brand strategies?

The opportunity for brands to leverage MVNOs as a means of amplifying customer engagement, brand loyalty and business differentiation is significant. As we approach 2025, this could be one of the most overlooked tactics in digital marketing. Here’s why CMOs and enterprise decision makers should consider an MVNO as part of their strategy:

Enhancing brand alignment and differentiation 

For businesses looking to build stronger connections with their audience, MVNOs offer an opportunity to align mobile services with a brand’s core identity, reinforcing loyalty. Picture a medical insurance company taking their rewards and incentive programmes one step further by  offering their customers data in exchange for healthy lifestyle behaviours. Customers who already subscribe to such a company’s ethos would feel their choices are rewarded tangibly, by way of data, which is considered a valuable digital currency. Not only does this enhance customer engagement, but it also helps the brand differentiate itself in a crowded market while reducing health insurance claims — a win-win situation.

This kind of digital synergy between brand values and customer incentives is difficult to achieve through other marketing tools, making MVNOs a unique asset in the digital marketing playbook.

Meeting the demand for hyper-personalisation 

The modern consumer actively seeks personalised brand interaction and experiences. MVNOs offer flexibility in tailoring mobile plans and services based on customer preferences. With the integration of AI and advanced data analytics, brands can identify and respond to individual customer needs, delivering hyper-personalised offers that add value and deepen brand engagement.

Staying with the example of a health insurance company: based on customer preferences, the brand can seamlessly integrate their customers into other products within the enterprise’s portfolio and enhance data rewards, engagement and extend attractive offers via their existing rewards partnership network.

Bundled services with added value 

In a fast-paced world of instant gratification, endless choice and price-conscious consumerism, today’s consumers seek value and convenience. MVNOs are uniquely placed to satisfy both of these needs through bundled services – combining competitively priced mobile connectivity plans with complementary products or services. By deploying deep customer intelligence through state-of-the-art technologies as used by MVN-X, these integrated services can be tailored to specific customer segments, tapping into customer segments with specific needs and desires.

If we look at the existing South African market, brands like TFG (The Foschini Group) are already successfully leveraging this model. Through their MVNO, TFG Connect, they offer subscribers data, vouchers and promotions that extend across their entire ecosystem. It’s a clever marketing strategy that boosts the bottom line, adds value and encourages frequent omni-brand interaction at a group level – a key to staying relevant in today’s marketplace.

Loyalty programs and exclusive offers 

In the competition for customer loyalty, MVNOs provide brands with a platform to offer exclusive content, promotions and rewards. This can drive customer retention while positioning the brand as a leader in loyalty innovation. For instance, MVNOs can enable customers to convert data into digital currency, offering them free airtime, vouchers, or even cash in exchange for their loyalty. The huge value offering of this strategy can create a dedicated, engaged customer base that actively advocates for the brand.

Data-driven customer insights for smarter marketing 

One of the biggest advantages MVNOs bring to the table is data. By leveraging advanced data analytics and collecting data on customer behaviours and preferences, an MVNO can help brands refine their marketing strategies and improve customer interactions. This data can fuel targeted campaigns that are more likely to resonate with consumers and result in stronger brand engagement.

Brands can no longer afford to rely on generic messaging. In the era of big data, customer insights derived from MVNO interactions allow for a more tailored, relevant marketing approach that hits the right notes with target audiences.

Building community and connection 

Community is more than a buzzword in marketing and has become increasingly important for brand building. MVNOs can facilitate community building and engagement by creating exclusive platforms, forums or events for subscribers. This sense of belonging and exclusivity can strengthen the relationship between brand and consumer, fostering deeper loyalty and customer satisfaction.

Agility and innovative service delivery 

MVNOs’ operational independence gives them the agility to react promptly to market shifts and emerging consumer demands. Companies can experiment with new engagement strategies, driving a culture of innovation that keeps them relevant in the fast-paced digital economy. This agility allows brands to stay ahead of competitors and consistently deliver added value to their customers.

In a fast-paced digital environment, this ability to innovate and adapt to emerging trends can be a game-changer for brands looking to remain relevant and responsive.

Seamless cross-channel marketing 

Integrating MVNO services into a brand’s wider cross-channel marketing strategy is crucial. By offering a unified voice across all platforms, brands can ensure a seamless experience for their customers. Whether through social media, mobile apps, or physical products, this cross-channel consistency strengthens the customer journey and reinforces brand loyalty.

The path forward: consulting the experts

While MVNOs present significant opportunities for enhancing customer engagement and loyalty, the successful execution of these strategies requires a nuanced understanding of market dynamics and customer needs. Businesses must commit to delivering exceptional customer experiences while staying attuned to technological advancements and evolving industry trends. To achieve this, they need to ask the question: are they or their MVNE partner capable of delivering on these requirements or do they need to consult with a proven industry expert who can help them navigate the strategic, commercial, and technical requirements for success or deliver a turnkey MVNO and have it up and running quickly and efficiently.

With MVNOs offering such compelling advantages, it’s time for businesses to reconsider their marketing strategies for 2025. Brands that act now stand to benefit from enhanced engagement, increased loyalty and a more personalised customer experience.

Daniel Swart is the Chief Commercial Officer of MVN-X, South Africa’s leading MVNO enabler. Reach out to him if you’d like assistance in establishing your brand’s MVNO or optimising an existing model.