Here's the truth: eight out of 10 customers switch brands due to poor customer experiences (CX). That means if your mobile virtual network operator (MVNO) fails to meet customer expectations, they're likely to leave you for a competitor.
That's why it's essential to prioritize the customer experience from the outset. But one critical element to good MVNO customer experiences often gets overlooked: tech support. Below, we define what an MVNO is, the current challenges in the MVNO landscape and why tech support is critical to improving the MVNO customer experience.
What is an MVNO?
First, what is an MVNO vs an MVNE? The two are often intertwined, but there are distinct differences between them. MVNOs like Consumer Cellular, Twigby and Boost Mobile are primarily customer-facing. They're mainly responsible for customer experience and don't own any of the underlying technology infrastructure that powers customers' devices.
This is where the mobile virtual network enabler (MVNE) comes in. The MVNE operates behind the scenes on the technology side, offering e-SIM provisioning and other services to the MVNO. Since MVNOs don't have to maintain the infrastructure that powers these telecom experiences, they can provide budget-friendly service plans to customers.
Current challenges for MVNOs
The MVNO market is incredibly saturated. There are tons of MVNOs for customers to choose from, and there is an MVNO for almost every niche you can imagine. For example, there are MVNOs for seniors or digital nomads. There are even MVNOs for gamers or eco-conscious consumers.
With so many competitors on the market, building brand awareness can be a struggle. How do you differentiate yourself to customers when they have so many choices? MVNOs can also struggle with slow or outdated infrastructure from MVNE vendors. That's why it's so important to do your research and ask questions to prospective mobile virtual network enablers.
Additionally, many MVNOs struggle with poor customer service. This can be particularly devastating for these telecom businesses. It's estimated that, on average, the cost of bad customer service for companies around the globe is $1.6 trillion annually. Additionally, 96% of customers will leave after a single bad service experience. That means that good tech support isn't a nice-to-have, but a must-have for any telecom business.
Tech support: The key to a better MVNO customer experience
It's no exaggeration to say that customer service can make or break an MVNO's success. Below, we outline why tech support is crucial to delivering a superior customer experience.
Stop customer churn in its tracks
Good tech support is critical for reducing customer churn. Customer churn refers to the phenomenon where customers cease doing business with you. Reducing the customer churn rate is crucial, as it costs up to seven times more to acquire new customers than to retain your current ones.
High customer churn rates plague the telecom industry. According to Statista, the average churn rate for the telecom industry is 21%. This means that telecom providers, such as MVNOs, can expect to lose one in four customers.
So what causes customers to leave? Often, there are emotional triggers behind customer departure. According to the National Customer Rage survey, the number one frustration among customers is the inability to speak to a human. For this reason, you can't use AI to replace human agents. Otherwise, you risk increasing customer frustration and turnover. Nearly three-fourths of customers prefer to speak to a human about a service-related issue, meaning your contact center agents have a critical role to play in the customer experience.
Instead of replacing people, future contact centers will rely on a hybrid of humans and AI to create better service experiences. For example, MVNOs might use AI to enhance contact center agent productivity or reduce case burdens on agents.
Improve critical call center metrics
Prioritizing tech support in the customer experience is vital for improving key contact center metrics. For example, good tech support can help improve net promoter score (NPS). NPS is defined as the level of satisfaction customers have with your products and services, as well as the likelihood they'll recommend you to someone else.
Tracking NPS can help you get an at-a-glance view of how your MVNO business is doing. So, what is a good NPS score? Generally, the average NPS score is 32, but it can vary by industry. For telecom, the average is 31. Good tech support experiences can help boost your NPS, which means customers are happier and more likely to recommend your business. This is critical, as word of mouth remains one of the most powerful marketing tools for a brand, even in our increasingly digital age.
In turn, happier customers are also less likely to leave, meaning that tech support is a critical part of successful customer retention strategies for MVNO businesses. As mentioned previously, it costs significantly more to acquire new customers than to retain your existing customer base. By prioritizing tech support in the customer experience, your company can also boost its customer retention rate and lower business expenses.
Create new revenue opportunities
Improving your tech support doesn't just help streamline the customer experience; it also enables your business to tap into new revenue opportunities.
Happy customers are more likely to stay, and this is key to unlocking new revenue potential. Research shows that you have up to a 70% chance of selling to your existing customers. In contrast, the chances of successfully closing a deal with a new customer are only 20%. This means that tech support is critical for uncovering new up-selling and cross-selling opportunities.
Additionally, two-thirds of customers say customer service quality is a critical factor in their purchasing decisions. Research also shows that companies that prioritize the customer experience can boost sales by up to seven percent. Therefore, companies seeking to acquire new customers can utilize high-quality tech support to differentiate their brand from the competition and enhance profitability. This can be critical in the telecom industry, where oversaturated markets can make it difficult for your brand to stand out.
How to create a positive tech support experience for customers
Now that you know why tech support is critical to the MVNO customer experience, how can you make sure your business meets customer expectations? Below are a few best practices for providing a positive end-to-end customer experience.
Have a strong self-service knowledge base
A robust self-service knowledge base is crucial to enhancing the customer experience. 88% of customers expect you to provide self-service options, making automated support no longer a nice-to-have, but a must-have.
Many self-service knowledge bases quickly become outdated due to multiple software updates or new smartphone releases entering the market each year. A good knowledge base should update dynamically to ensure your customers have the support they need to resolve their issues quickly. It should also go beyond static FAQ articles and use interactive tutorials and other formats primed for learning.
Leverage live video support
There's no doubt that live video support is the future of customer service. Nine out of 10 customers report having positive live video service experiences, making it a powerful tool for improving tech support.
There are many benefits of video chat customer service. It facilitates better communication between the customer and agent, leading to improved first-call resolution rates. In turn, better communication also leads to faster service resolution, which can reduce support costs. This can be critical for transitioning your contact center from a call hub to a revenue driver for your business.
Prioritize the onboarding process
One of the best ways to strengthen your CX strategy is by improving the customer onboarding process. Your onboarding process can make or break the MVNO customer experience. 70% of customers will leave if your onboarding process exceeds 20 minutes.
If you're looking to streamline the process, consider leveraging self-serve onboarding. Positive self-serve onboarding experiences are key to driving digital adoption and improving customer loyalty.
Onboarding is your customer's first impression of your business, so it's essential to get it right. To ensure a positive experience for your customers, leverage tools like customizable onboarding workflows that provide step-by-step guidance to streamline the process. Be sure also to implement proactive customer service. Proactive support means anticipating and resolving issues before they arise. Proactive tech support is key for self-serve onboarding to improve customer retention and reduce business costs.
Better tech support is key to better customer experiences
Tech support can't be an afterthought for companies that want to improve the MVNO customer experience. With endless choices on the market, customers will leave a brand that fails to meet their expectations. By prioritizing tech support from day one, you can reduce customer churn and differentiate your brand in an increasingly competitive market.
Looking for more information on how to make your MVNO business stand out from the crowd? Check out our recent case study on how Twigby used tech support to improve positive online reviews by 15%. Download the case study today!
