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It’s All About the Accessories!
At the recent All Wireless and Prepaid Show, I overheard someone on the show floor say “wow, everyone is selling accessories.” There is a reason for this. According to a September, 2023 article by Globe Newswire, the mobile accessory business in the United States is currently valued at $279 Billion and is expect to grow at a Compound Annual Growth Rate (CARG) of 6% a year and rise to $470 Billion by 2031. Why? Smartphones are now an integral part of everyone’s life. The article claims that “the accessibility of smartphone accessories via online platforms is accelerating market growth since they give customers more convenient and varied purchasing possibilities, and that the online channel enables manufacturers to serve a bigger base of end users.”
How Do I As an MVNO or Dealer Get My Share?
Dealers have always complained about losing business to other channels, whether it be big box retailers, e-commerce or ‘the guy down the street.”
A bigger issue has always been what inventory to buy. With new phones coming out every year with different accessory adapters, plugs, etc. dealers are tying up valuable dollars on inventory that will soon be obsolete.
I was fortunate to meet this year a company call CIXCI, www.cixci.com a tech company that is aiming to revolutionize the way consumers buy accessories and compensating, YES COMPENSATING Dealers and MVNOs for accessories that their customers purchase with NO INVENTOY REQUIREMENTS. What? Okay, this took a little digging into.
I had the opportunity to sit down with Alexander Phillips, the Founder and CEO behind CIXCI, a tech company headquartered in Leesburg, Virginia. We covered a lot of ground and his platform can meet the needs of MVNOs and Dealers alike. Here are some excerpts from our discussion:
Jon Horovitz: So tell me about CIXCI.
Alexander Phillips: In today's fiercely competitive landscape, MVNOs are in a constant quest for innovative strategies to increase revenue, reduce churn, and carve a distinctive niche in the market. One significantly underexplored revenue stream lies in the sale of mobile accessories—a market segment often overlooked by many MVNOs. In our fast-paced digital era, yesterday's business model for selling accessories doesn't align with today's customer expectations. For nearly two decades, the prevailing business model has struggled to benefit both MVNOs and accessory vendors.
CIXCI is at the forefront of transforming the MVNO and accessory vendor landscape with its cutting-edge, patent-pending solution. Our comprehensive, all-in-one SaaS solution is revolutionizing both B2B and B2C processes in the wireless industry. Beyond just streamlining the accessory process and boosting conversion rates, we offer real-time insights and an unparalleled reach.
JH: You said that MVNOs are leaving revenue on the table. How?
AP: Many MVNOs with a robust online presence have, surprisingly, refrained from offering accessories to their customers. This strategic gap represents a significant missed opportunity. MVNOs invest heavily in acquiring and retaining subscribers, but they often neglect the potential revenue stream that accessories can provide.
The traditional approach to selling accessories has been faced with challenges for MVNOs:
- Complex Logistics: Managing accessory inventory, order fulfillment, and shipping is no small task. It adds layers of operational complexity to MVNOs, often dissuading them from venturing into selling accessories.
- Product Selection Uncertainty: Determining which accessories to offer can be a challenging decision. MVNOs often lack insights into customer preferences, leading to the risk of carrying irrelevant or unpopular products.
Vendor Relationships: Establishing and maintaining relationships with accessory suppliers or manufacturers is not a straightforward process. Negotiating pricing and terms, ensuring timely deliveries, and managing quality can be daunting for MVNOs.
As a result, MVNOs remain hesitant to delve into selling accessories online, limiting their revenue potential and leaving their customers without the added convenience of a one-stop shop for their mobile needs.
JH: How does CIXCI becoming the Game-Changer, in your words?
AP: CIXCI is poised to redefine how MVNOs approach the opportunity to sell accessories. By addressing the challenges, CIXCI empowers MVNOs and accessory vendors to tap into this lucrative revenue stream, enhancing their competitiveness and customer offerings. We do this in a couple of ways:
Streamlined B2B Process: At the core of CIXCI's innovation is its ability to simplify the B2B process between MVNOs and accessory vendors. It acts as a bridge, seamlessly integrating with MVNOs' existing systems and eliminating data discrepancies and operational inefficiencies. This integration ensures a smooth flow of orders, inventory management, and order fulfillment, making selling accessories online hassle-free.
Tailored Selection and Customer-Centricity: Customization and Personalization CIXCI recognizes the uniqueness of each MVNO, encompassing their distinct branding and product offerings. The platform empowers MVNOs to select accessories tailored to their customer base, amplifying the customer experience and providing personalized product recommendations that solidify brand loyalty.
Benefits for MVNOs:
- New Revenue Streams: By venturing into selling accessories, MVNOs can create a significant new revenue stream that wasn't available before.
- Enhanced Competitiveness and Customer Satisfaction: By becoming a one-stop shop for their customers, MVNOs gain a competitive edge in the market while simultaneously offering a more comprehensive and convenient shopping experience. This approach reduces customer churn and increases overall satisfaction and loyalty.
- Reduced Internal Costs: Selling accessories not only generate additional revenue but also helps offset internal operational costs, contributing to a more financially sustainable MVNO business model.
JH: Are the accessory vendors onboard with this?
AP: Absolutely! The benefits to our vendors are numerous.
- Expanded Reach: With CIXCI, accessory vendors can mirror their complete product offering through every MVNO, not limiting themselves to offering only a few generic accessories like black and clear cases or a single type of headphone. This expanded product exposure enables vendors to showcase their full range of accessories to a larger and more diverse audience through MVNOs' customer bases.
- Streamlined Operations: The platform simplifies order management and fulfillment for accessory vendors, reducing operational complexities and allowing them to focus on delivering quality products and services.
- Diversified Revenue Streams: By partnering with CIXCI, accessory vendors can create a new and diversified revenue stream that doesn't solely rely on traditional business models. This innovative approach opens up opportunities for consistent income through MVNOs' accessory sales, reducing dependency on older, less dynamic revenue sources.
JH: Well, if I understand it, customers will be able to order accessories on-line in their dealer store and get it the next day (in most cases) and the dealer earns a commission?
AP: That’s right. We're working on creating a seamless experience for customers who visit their dealer store, and while we aim to expedite the delivery process, I wouldn't want to promise next-day delivery in every case. However, the real essence here is about creating a WIN-WIN opportunity for the dealer and the vendor.
Just as we're streamlining the process for MVNOs to sell accessories online, we're also committed to doing the same for dealers. Imagine a scenario where a customer walks into a dealer's store and doesn't find the accessory they're looking for on the peg. Instead of going online to purchase it elsewhere, we want to ensure that the dealer has the chance to capture that accessory sale, right there and then, creating a new revenue stream for them. It's about enhancing the dealer's ability to provide a one-stop-shop experience, ultimately benefiting both the dealer and the vendor. Our focus is on facilitating these kinds of opportunities within the dealer's ecosystem to strengthen their position in the market.
Wow, a great solution for dealers and MVNOs looking to increase accessory sales without tying up their money on inventory. I see a very bright future for CIXCI in this growing space. If you want to learn more, simply go to www.CIXCI.com or to atriumunlimited.com/contact As always, tell them that Jon sent you! 😊