Exploring scalable niches with Peter Jarich, Current Analysis
Preview:
Citation preview
- 1. Find a Niche That Can Scale When MVNOs focus on customer
niches a tried and true strategy in todays wireless market can that
really be seen as a liability? After all, the term niche player
often is directed negatively at a company that is so focused on a
subset of customers that it isnt likely to grow very much. No
operator wants to announce to the world that it is purposely
limiting itself now and in the future by addressing only a small
segment of customers. And yet, niches are where communities can be
built and loyal customers developed. The question, in terms of
looking at the right niche to target, is looking for niches that
can scale, says Peter Jarich, vice president of consumer and
infrastructure for Current Analysis. Look at niches that are about
trends, rather than a small set of users or demographics. As Jarich
points out, much of the demographic differentiation has already
been done, with international companies coming into the U.S. market
to target foreign nationals or ethnic communities. Other market
segments have also already been addressed, such as the consumers
looking only for the lowest-cost service, or groups of consumers
interested in certain forms of content. The challenge for operators
then is to identify significant trends around which a service could
be built. Jarich says security, for instance, is one such category
because it builds on an interest and concern that isnt going away
anytime soon. Focusing on aging customers or underserved
communities is also more about addressing the underlying trends
than simply looking at the customers as a niche segment.
Additionally, other trends already being seen in the market are
technology-based, such as a cost-conscious service in which the
devices access Wi-Fi networks first, only switching to the cellular
network when a Wi-Fi connection isnt available. MVNOs are
gravitating to offerings such as a service oriented to Internet of
Things interconnectivity, as well as regulatory-related offerings
such as the LifeLine program in California. MVNO operators need to
focus on building a community around their particular niche as they
establish the target audience and provide the service. Addressing
the unique needs of the service segment is key to building the
affinity that leads to long-term customer loyalty. The good news
for MVNOs is that thanks to their smaller size and audience
targeting, they are in a better position to foster loyalty than
their huge competitors. As Jarich notes, It is a lot harder to
build loyalty when you are targeting 100 million people than when
you are targeting a smaller segment and you are speaking to their
needs rather than just saying here is a service for you. 2015
Sprint. This information is subject to Sprint policies regarding
use and is the property of Sprint and/or its relevant affiliates
and may contain restricted, confidential or privileged materials
intended for the sole use of the intended recipient. Any review,
use, distribution or disclosure is prohibited without
authorization. For more information, visit wholesale.sprint.com
Video also available at youtu.be/ZWKgPjzoWVY