There's an odd thing I found since moving to London. While smaller businesses do amazing brand work, the larger ones display embarrassing rookie mistakes Iโd never let my startups make! Letโs take Vodafone for example.
Vodafone makes newcomers wait 3 months before they can join their ยฃ10/month plan ๐คฏ
Vodafone is essentially telling newcomers that they're not trustworthy and that they need to prove themselves before they can be given a good deal.
Forget the awful branding and messaging mistakes. Forget the broken user experience. Letโs talk numbers.
The average CAC (Customer Acquisition Cost) of a new mobile customer in the UK is ยฃ15.
The average LTV (Lifetime Value) of a mobile customer is ยฃ250.
The default rate for mobile phone customers in the UK is 0.2%.
So letโs see.
They spent ยฃ15 on a user who actually showed up and asked to be a customer. Then lost ยฃ250 when the user went elsewhere. And all of that in order to avoid losing 0.002 * 30 = ยฃ0.06.
Say they gave the service for free while the credit cleared. Say they frame it as THEM proving themselves TO THE CUSTOMER that theyโre good enough to be their service provider.
It would show that Vodafone is confident in its ability to provide a good service (PLG anyone?)
It would make the customer feel like Vodafone is taking the time to get to know them and their needs (they could use some basic AI to customize the right plan for them, but Iโm going too far)
It would show Vodafone cares about its customers and wants to provide them with the best possible service. Thatโs how you build an empire ๐ช
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๐๐๐๐ ๐ ๐:๐ ๐ฐ๐ข๐ญ๐ก ๐ ๐ฌ๐๐๐ฌ๐จ๐ง๐๐ ๐ฆ๐๐ซ๐ค๐๐ญ๐ข๐ง๐ ๐๐จ๐ง๐ฌ๐ฎ๐ฅ๐ญ๐๐ง๐ญ? Hit me up ๐ bit.ly/goempirenow
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