Digital Care offers mobile device protection plans for SIM-Only Customers

SIM-Only (SIMO) deals are fast becoming one of the most popular options for customers looking to sign a new telecom contract or renewing existing mobile plans. To give an example, over half of all mobile contracts in the UK will be SIM-Only by 2021. This trend has consequently resulted in a large decline in device sales by Mobile Network Operators (MNOs). Therefore, MNOs are simply becoming connectivity providers and need to increasingly enhance network quality and enrich their Value Added Service (VAS) offerings to remain competitive. By partnering with Digital Care, MNOs have a great opportunity to expand their VAS portfolio dedicated to SIM-Only contracts by providing a range of device protection services. Digital Care’s bespoke solution enables MNOs to offer mobile device protection to handsets used by SIM-Only customers, regardless of brand, model or place of purchase.

Global trends

We are witnessing the downfall of subsidized handset contracts and the simultaneous dynamic growth of SIM-Only contracts. Customers are increasingly separating their tariff purchases from their handset purchases. Why? Because SIM-Only deals are a great way to save money, especially if customers want to keep used handset past the end of their contracts. The key to the success of SIM-Only contracts is their ability to attract customers from both prepaid and postpaid handset tariffs while also maintaining their appeal to customers already on SIM-Only tariffs. Ultimately, customers are choosing the flexibility of the open market which promotes choice. Once customers move to SIM-Only contracts, many tend to stay.

Before just a trend, now a market opportunity

There is a clear evidence of a trend towards SIM-Only contracts. MNO profitability is becoming subject to increasing pressure as customers are moving to retail, staying with current handsets (seeing only incremental changes in new models) or buying used hi-end models. Operators are becoming connectivity providers and need to increasingly improve network quality and Value Added Services in order to differentiate themselves from one another. In search of profits, MNOs have to move into multi-play territory, leaning more on services than physical products. Digital Care Partners have a higher chance of reaching SIM-Only customers by offering high-valued mobile protection, tailor made to their needs.

With the emergence of these global trends and the abovementioned changes that have resulted in a drop in device sales, addressing SIM-Only customers with the offer of mobile device protection is becoming a must. Since customers can switch operators more easily and price competition is still very fierce, a device protection offering – aside from other factors such as network quality, coverage and customer service – stands out as an important perk to be taken into consideration by customers looking for a new operator. Digital Care’s unique service provides greater flexibility and scalability, potentially driving up volumes and guaranteeing high attachment rates. Our experience in offering products dedicated to SIM-Only contracts proves that we are able to generate a substantial stream of yearly revenue for each of our partners – says Maciej Sierakowski, Key Account Director from Digital Care.

Against the churn

The main challenge highlighted by MNOs nowadays is customer churn. By offering mobile device protection to SIM-Only contracts, operators have the opportunity to enhance their end-user experience, resulting in higher satisfaction and lower churn.
– Our service meets the high expectations of both MNOs and their customers. As Digital Care, we recognize needs, define goals, and design complete solutions to create a unique mobile device protection service. We provide end-to-end solutions and assist our partners at every stage, from offer building, sales training and marketing through reporting claim management and device service. With our wide scope of protection, affordable prices and great customer journey, our services can help strengthen relationships with SIM-Only customers – adds Maciej Sierakowski.

The process

Looking for market success, all service processes must be simple and smooth. Customers are moving through sales channels. Any successful solution nowadays has to be adapted to omnichannel sales, regardless of whether a customer comes to a POS, uses a CC line or signs a SIM-Only contract online.
– Digital Care’s solutions enables a “one-click to buy” journey across all channels. It is that easy! We believe in keeping formalities to a minimum – providing personal data isn’t necessary and there are no complicated forms or IT integration. This results in low-cost program implementation, another important factor for our partners – highlights Maciej Sierakowski.

Digital Care’s innovative solutions for SIM-Only contracts offers mobile network operators an opportunity to expand their services and gain a significant competitive advantage.

CCS Insight report source:

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