Follow BestMVNO In Google News
Welcome to Almost Summer! In today’s column, I’d like to talk about one of the biggest money-makers and high-margin products that a wireless dealer sells….. ACCESSORIES.
The accessory business continues to grow and provides great add-on sales opportunities for your sales staff and your online customers.
Accessory Market Surge
In 2022, according to Spherical Insights, the U.S. mobile phone accessories market was valued at approximately USD 32.4 billion. The market is projected to reach USD 125.8 billion by 2032, growing at a compound annual growth rate (CAGR) of 14.5% from 2022 to 2032. The rise of online shopping is transforming consumer behavior, emphasizing convenience and accessibility, and leading to a reshaped retail landscape.
Gen Z (ages 18-24) and Millennials (ages 25-35) are highly influenced by social media and internet searches to discover new products, including phone accessories. How much? According to research by an accessory vendor, consumers typically spend on their website an average of $75 to $90 on accessories. However, when consumers purchase the latest device, they will spend on average over $100 on accessories.
Yes, the rule of thumb in a retail environment is that any customer purchasing a new device on average will spend over $100 on accessories. A car charger, screen protector, and case will usually get you to that amount.
But selecting the right devices to stock in your store is often limited by resource allocation, space in the store, and availability from your supplier.
CIXCI Solves For This and More!
One company has solved all of that and more. I had the opportunity to meet Alexander Phillips, founder and President of CIXCI (www.cixci.com) They have developed a platform that allows MVNOs that have an online presence the opportunity to offer hundreds of accessories with little to no cost to the MVNO! Before we dive into the mechanics of how this works, Alexander laid out for me his thoughts on success in the competitive wireless market.
“Yesterday's business model on how to sell accessories doesn't fit today's consumers. Success now hinges on what you have access to.”
"Visualize. Accessorize. Optimize. Clear accessory choices drive customer purchases, especially during device purchases. Maintaining an updated, diverse catalog to meet consumer needs is essential.
"Like all modern businesses, MVNOs must embrace the digital landscape. This extends from browsing accessories to seamless billing and support navigation."
"Whether you're selling devices or adopting a BYOD approach, the rising number of consumers keeping their phones longer ensures a steady demand for new screen protectors, charging blocks, and cases. Therefore, regardless of the MVNO business model structure, accessories will always be integral to the shopping experience."
Make it Easy! Simplicity is key, complexity can lead to confusion and frustration. By streamlining your accessory processes, you create an environment where customers feel valued and understood.
CIXCI built its platform with six simple pillars:
- Empower MVNOs to Diversify Revenue Streams
- Elevate Customer Experience and Foster Loyalty
- Create a WIN-WIN environment
- Revolutionize Outdated Accessory Sales Processes
- Drive Cost Efficiency
- Effortlessly Scale Without Heavy Infrastructure
Beyond "Nice to Have”
Partnerships are now a strategic necessity, not just a luxury.
“In the ever-evolving landscape of MVNOs and accessory vendors, effective partnerships are the driving force behind increased sales, mutual growth, and customer-centricity. They're the magic ingredient that turns challenges into opportunities, and aspirations into achievements.”
Selling accessories isn't just about revenue generation; it's a strategic move that can significantly impact internal costs. Diversifying revenue streams through accessory sales can offset operational expenses and reduce the dependence on device sales alone. Accessories provide a stable income source that can be channeled towards managing internal costs more efficiently.
Accessories offer significant benefits to MVNOs, including cost reduction, additional revenue streams, reduced customer churn, and a competitive edge.
Here's a closer look at how accessories contribute to cost savings and enhance the overall business model of an MVNO:
Lowering Costs: Selling accessories alongside core services allows MVNOs to offset operational expenses. Accessories often have higher profit margins compared to voice and data plans, enabling MVNOs to generate additional revenue without incurring substantial costs. This extra income can be utilized to offset expenses such as network access fees, customer support, and marketing efforts.
Creating a Revenue Stream: Accessories provide an opportunity for MVNOs to diversify their revenue streams. By offering a range of accessories, including cases, chargers, and headphones, MVNOs can cater to customer needs and capture a share of the accessory market.
Reducing Customer Churn: Providing accessories enhances the customer experience and increases loyalty. When customers can conveniently purchase accessories from their MVNO, it eliminates the need to visit separate retail stores or online platforms. Offering accessories at the time of the device purchase fosters customer satisfaction and reduces the likelihood of customers switching to other providers.
Differentiation: In a competitive MVNO market, offering accessories can be a major differentiator. Customers are often attracted to MVNOs that provide a comprehensive ecosystem, including accessories that enhance their device usage. By curating a selection of high-quality accessories tailored to their target audience, MVNOs can stand out from competitors and attract customers seeking a complete package.
“Your customers are going to buy accessories. The only question is are they going to buy them from you or someone else?”
Incorporating accessories into the business model allows MVNOs to diversify revenue, reduce customer churn, and differentiate themselves in the market. Leveraging the capabilities of CIXCI further enhances these benefits by providing an integrated solution that simplifies the accessory sales process. MVNOs can harness the power of accessories and CIXCI to improve their financial performance, drive customer satisfaction, and position themselves for long-term success in the industry.
Okay it sounds good, but you started off this article with three words….. No Inventory Costs!
That's correct. By using CIXCI, your customers (or your salesperson) can browse through hundreds of accessories available for purchase and have them delivered within a couple of days. The MVNO pays ZERO upfront for the accessory inventory while retaining the margin. This means no investment in inventory, no stocking or restocking shelves, and no risk of running out of stock. Plus, you can achieve a substantial net margin on your accessory sales.
This author reviewed CIXCI’s platform and workflows and I experienced a seamless sales and delivery process on accessories that I wanted, not just what a dealer had in stock.
I’d encourage everyone who is looking to offer a wide range of cutting-edge, quality accessories to reach out and learn more about CIXCI. I think you’ll be glad you did.
In closing, a few items:
In the June 13th episode of The Boon of Wireless Podcast (www.theboonofwireless.com), I had the pleasure to have the Co-Founder of MVNO Nation join us. A terrific interview with Ewa Campbell as she describes their collaborative approach to working with over 6000 people in the MVNO ecosystem has paid off for hundreds of MVNOs all across the globe.
I am honored to have been selected to be a judge for MVNO Nation’s first-ever MVNO Awards to be held at the third annual MVNO Nation Live event in Valencia, Spain this coming November. This is a great event and I’m looking forward to getting the chance to help determine the winners!
Get those nominations in. Please click on this link to nominate and learn more.
Until next time,
Good Selling!
Jon
Jon's consulting company, Atrium Unlimited, LLC, advises carriers, MVNOs, investment bankers, and venture capitalists interested in joining the wireless space.
Jon would love to hear from you about any consultative needs you may have.