Introduction: A Proven Telecom Marketing Strategy That Delivers Profits
We present you a proven telecom marketing strategy that produces real profits. In our most successful case, we've experienced customer acquisition costs (CAC) as low as €10, with an average revenue per user (ARPU) of €18. This isn’t just theory—it’s a tested and refined approach that has delivered 600,000+ users in just over a year.
How? By focusing on family plans—a strategy that allows telecom operators to acquire multiple customers (4-5 members) at once, slashing CAC while boosting ARPU. In a competitive industry where customer acquisition is costly and ARPU is typically low, a strategy targeting families can be the game-changer your telecom business needs.
Read on to discover how you can implement this approach, improve customer retention, and drive sustainable growth for your telecom business.
The graph below describes the cashflow with following realistic assumptions:
Monthly Digital Marketing Investment: 30.000€ (Start low - scale up later)
ARPU: 27,00€ (3 family members, each 9,00€)
Customer Acquisition cost (online): Starting from 30,00€ ending up at 18,00€ (realistic and proven)
Startup cost for infrastructure setup and App customization: 75.000€ (between 60k€ and 100k€)
Section 1: The CAC and ARPU Dilemma in Telecom Marketing
1.1. The Persistent Struggle to Balance CAC and ARPU
In the telecom industry, managing Customer Acquisition Costs (CAC) while maximizing Average Revenue Per User (ARPU) has always been a critical challenge. Telecom operators invest significant resources in acquiring new customers through advertising, promotions, and sales efforts, but the returns from individual users often don’t justify the costs, especially in mature markets.
For MNOs, CAC can often exceed €50 per customer, depending on the marketing channel and sales effort used. At the same time, the ARPU in many regions remains low, often hovering around €15-€20. The combination of high acquisition costs and relatively low revenue per user makes profitability elusive for many operators.
1.2. Family Plans: A Profitable Alternative
Family plans present a unique opportunity to turn this equation around. Rather than acquiring one user at a time, MNOs can acquire entire family units—typically four to five members—under a single contract. This allows telecom operators to significantly lower the cost of acquiring each user.
For example, if the CAC to acquire a family is €50, but you gain five customers in the process, the CAC per customer becomes only €10. Compare this to the industry average of €50 per individual customer, and the value becomes clear.
Moreover, family plans tend to result in higher ARPU. Families generally consume more data and add services like extra lines, content subscriptions, and even parental controls, leading to increased revenue opportunities. ARPU for family plans can easily reach €18 per customer or more—a substantial boost compared to individual plans.
Section 2: Why Targeting Families is the Future of Telecom Marketing
2.1. Lower CAC Through Bundled Customer Acquisition
One of the primary benefits of targeting families is the ability to bundle customers under a single acquisition effort. When a telecom operator acquires a family plan customer, they aren’t just gaining one user; they are acquiring 3-5 users, all tied to a single contract.
By reducing the number of touchpoints needed to secure multiple customers, operators can bring down their CAC significantly. This bundled approach optimizes the efficiency of marketing campaigns, making them more cost-effective. Instead of spending marketing euros on targeting each individual user, telecom operators can focus on family units, spreading their acquisition costs across multiple customers.
2.2. Increased ARPU Through Family-Oriented Services
Families have different mobile usage patterns compared to individual customers. They often require more data, and family members are more likely to subscribe to additional services such as streaming content, parental controls, or security features. Offering these types of add-ons not only increases customer satisfaction but also boosts ARPU.
Here’s how family plans typically contribute to increased revenue:
Shared Data Plans: Families usually need higher data volumes, resulting in higher-priced plans.
Add-On Services: Parents often require services like parental controls or location tracking, which can be offered as premium add-ons.
Device Bundling: Offering discounted or free devices for family members (like tablets or additional smartphones) can generate more revenue.
2.3. Improved Customer Retention and Loyalty
Family plans foster stronger loyalty. Once multiple members of a family are tied to a telecom service, switching providers becomes more complicated and costly, leading to lower churn rates. The shared contract and multiple users create a strong barrier to exit, ensuring longer customer lifecycles.
Section 3: Case Study—600,000+ Users in Just Over a Year
One of our most successful implementations of this strategy occurred in Asia, where we collaborated with a local operator to launch a family-first platform. The results were nothing short of spectacular:
600,000 users gained in just over a year. (https://www.mfamily.vn/en)
CAC as low as €10 per customer, significantly below the industry average.
ARPU reaching €18, driven by bundled family plans and add-on services.
This case proves that targeting families can drastically reduce acquisition costs and increase profitability for telecom operators. The ability to acquire 4-5 customers with just one marketing push is a game-changer for operators struggling to balance high CAC and low ARPU.
Section 4: Implementing a Family-Focused Telecom Marketing Strategy
4.1. Leverage Digital Marketing to Reach Families
To successfully target family units, telecom operators must focus on digital marketing channels. Digital advertising allows for highly specific targeting, ensuring that operators reach families who are actively searching for better mobile services. Some effective strategies include:
Social Media Advertising: Platforms like Facebook and Instagram offer detailed targeting options that can identify parents or heads of households.
Google Search Campaigns: Family-oriented keywords can attract users looking for shared plans or mobile solutions for their families.
Content Marketing: Blogs, tutorials, and how-to guides on managing mobile services for families can establish the operator as a trusted resource.
4.2. Family-Centric Messaging
The marketing message should emphasize the benefits of the family plan, including cost savings, convenience, and value-added services. Highlight how your telecom service can simplify life for parents and provide security for children, such as through parental controls or data monitoring.
For example:
"One contract, endless possibilities"—Position your service as the easiest solution for busy families.
"Keep your family connected and safe"—Emphasize security features and shared plans to appeal to parents.
4.3. Online Customer Acquisition and Conversion Optimization
The telecom industry has traditionally relied on brick-and-mortar stores for customer acquisition, but the future lies in online channels. Streamlined online customer acquisition strategies not only help lower CAC but also provide a seamless experience for families who may not have the time to visit a physical location.
Key components for online success include:
A User-Friendly Website: Ensure that signing up for a family plan is simple, with a smooth onboarding process that encourages immediate action.
Personalized Offers: Use data analytics to deliver personalized plans based on browsing behavior, ensuring potential customers see offers tailored to their specific needs.
Retargeting Campaigns: Families may take time to make decisions, so retargeting those who visited your website without converting can bring them back to finalize their purchase.
4.4. Data-Driven Approach to Optimize Results
Tracking and analyzing user behavior is critical to fine-tuning your marketing efforts. Use analytics tools to monitor:
Conversion rates by campaign type (social, paid search, organic traffic).
Cost per acquisition (CPA) by channel.
Return on investment (ROI) for specific family-targeted campaigns.
By continuously optimizing these metrics, telecom operators can further reduce CAC while driving higher ARPU through targeted family offers.
Conclusion: Time to Adopt the Family-First Strategy
The telecom industry is evolving, and operators that fail to innovate will fall behind. Family-first marketing strategies not only lower customer acquisition costs but also increase ARPU and improve long-term customer retention. By shifting focus from individual users to family units, telecom operators can maximize profitability in an increasingly competitive market.
The real question is: Are you ready to take your telecom marketing to the next level?
We’ve seen success firsthand, with over 600,000 users in just over a year, a CAC of €10, and an ARPU of €18. We have the technology, the app, and the online marketing strategies ready to be implemented. Any telecom operator interested in learning more should contact us to discuss how we can replicate this success in your market.
Let’s make telecom marketing easy, profitable, and family-focused.
Author: (janne.sivula@emblacom.com)
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