Mobile phones have become a must-have item of the modern world.

Although there has been solid growth in the number of mobile connections this has not translated into growth through the retail channel. Advances in product design and technology have driven consumer demand, but rather than see increased sales, industry operators have faced a very difficult trading environment. Mounting competition between operators has led to shrinking profit margins and declines in the average price of phones. Trends in real personal disposable income and consumer sentiment have also played their part in limiting revenue.

The face of the competition is changing. With the proliferation of free Wi-Fi, data services have stagnated or declined in some markets; clearly the future is far from rosy for most operators. The problem is clear, how do I get more customers whilst keeping the ones I have and grow the profitability of the service provided?

LCUK has worked with a number of operators assisting them in addressing customer churn rates, ARPU growth and customer acquisition. The mobile phone industry has a head start in many respects; they at least know who their clients are and they have some customer data. Using loyalty techniques and sophisticated data segmentation practices, LCUK has assisted its clients to materially improve a number of the KPI’s within their respective businesses.

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