mobile pbx The key to unlocking the SOHO/SME opportunity

mobile pbx The key to unlocking the SOHO/SME opportunity

In some countries up to 95% OF BUSINESS USERS are in the SOHO and SME segment. Mobile PBX the key to unlocking the SOHO/SME opportunity Business subscribers are usually telecom operators most valuable customers. They generate more revenue per user, and are generally more predictable and more committed to one carrier than the average consumer. But winning the business of large corporate customers often requires time consuming, complicated, and protracted bidding for tenders, not to mention customizing solutions and discounting. The good news, however, is that business subscribers aren t all large corporations in some countries up to 95% of business users are in the Small Office and Home Office (SOHO) and Small and Medium Enterprises (SME) segment. 1 This segment often represents a missed opportunity for telecom operators, with potential SOHO/SME customers falling into an untapped gap between large businesses and consumers. These customers do not require customized services and, compared to their larger counterparts, are relatively easy and quick to sell to. So how can these potentially highly profitable businesses be reached? With the right products and sales strategy, it s easier and more rewarding than you might think. 1. Every country defines the SOHO and SME segment differently, but sources such as the Organisation for Economic Co-operation and Development (OECD) suggest that Private small and medium sized enterprises (SMEs) typically account for more than 95% of all firms outside the primary agriculture sector, constitute a major source of employment and generate significant domestic and export earnings in the OECD, transition and developing countries. http://www.oecd.org/industry/smes/31919278.pdf

the service needs to be EXTREMELY EASY TO UNDERSTAND, set up, and use. Understanding the needs of small businesses The communications requirements of small businesses are quite different from big corporations, and must be understood in order to market to them successfully. As small businesses have fewer employees, being able to answer the company number wherever they are is often a key concern. If everyone is out of the office and the company is relying on fixed lines, business as well as professional credibility can be lost. The desire to provide excellent customer service and reflect a unified company image is also important, often with the added wish for the professionalism of one company phone number. Smaller companies do not usually have dedicated staff answering the main phone number, or staff to administer and maintain complex telecommunication systems. All employees are responsible for answering calls, as well as having their own core tasks to focus on. This means that the phone service needs to be extremely easy to understand, set up, and use. Whatever services are offered, this requirement is key. The need for simplicity is also reflected in the fact that SOHO and SME businesses are often attracted by bundled services that eliminate the need to deal with multiple vendors. Even in small businesses with very few employees, staff members normally have different areas of responsibility and expertise. There may be someone handling sales, another managing administration or finance, and another in charge of maintenance and support. Incoming calls have to be routed to the right people, preferably using an automated system to ensure employees aren t tied up fielding phone calls.

Answering those needs with a mobile PBX These needs can all be answered very simply, with a one-size-fits-all mobile PBX. By adding a mobile PBX to their portfolio, operators can reach the lucrative SOHO/SME segment without needing to create time-consuming customized solutions. With a mobile PBX, SOHO/SME customers can easily set up voice menus, call queues, call distribution methods, and voice announcements then control those settings directly from their phones. As smartphones are integral to making the most out of a mobile PBX, the service also leads to increased device adoption and a rise in uptake for other lucrative services. If the solution is easy and intuitive enough, customers can set it up and use it without dedicated support staff, minimizing the number of support enquiries and decreasing operator OPEX even further. Customers benefit from easy, professional call handling and one unified company number, while operators gain greater uptake and significantly strengthen their ARPU. And as there is no customer premises equipment (CPE) needed, the system can grow with the business making it the perfect flexible solution for growing companies.

The SOHO/SME opportunity Small business prospects Corporate prospects What s in it for operators? There are many benefits to targeting SOHOs and SMEs over corporate clients. Large corporations provide a small, static pool of opportunity and are hard and time consuming to sell to, whereas the SOHO and SME segment can boast a growing market with new opportunities arriving every day. They are also much easier and quicker to sell to.

More prospects, less customization High Customization needs Number of potential clients Low SOHO/SME Corporation In a crowded market place, targeting SOHO and SME customers will differentiate an operator from the competition and boost their market share because any business with no customization requirement is a potential customer. Targeting this segment will also reduce the complexity of an operator s portfolio, with one product for many customers instead of unique customized solutions for every large corporation.

Potential sales revenue over time Small businesses Mobile Lines Corporations Months In terms of risk mitigation, it makes sense to sell to many small companies rather than to focus all sales efforts on a handful of large corporations. In essence, the revenue opportunities from many small companies can equal or surpass one large corporate account. Of course, when operators have many customers they are also less susceptible to fluctuations in their customers fortunes. One big client could easily be lost overnight, but the corresponding 1,000 small customers are unlikely to be lost even in a year.

Earn revenue from incoming calls Charged Not charged Outgoing Outgoing Incoming Incoming Because most SOHO and small enterprise users do not currently have a PBX, telecom operators typically only invoice for outgoing calls from these companies. This means that an important proportion of total voice communication is currently never charged for. By enabling small businesses to take advantage of a mobile PBX, incoming callers benefit from a range of services such as welcome messages, automatic call distribution, and interactive voice response while operators benefit from the revenue that incoming calls begin to generate. This is a huge business opportunity and, best of all, once the voice network investment has been made, it is there to be monetized. For operators who already have SOHO/SME customers, a mobile PBX can increase ARPU by up to 25% as they ll be able to create additional service fees from incoming calls.

Any business with no customization requirement is A POTENTIAL CUSTOMER. About emblacom EmblaCom provides turnkey voice solutions to mobile operators, including industry leaders from around the globe. We help our partners attract and satisfy their business customers with efficient, professional voice communications. Learn more at www.emblacom.com or contact us at info@emblacom.com SOHOs and SMEs are also easier to access than large corporations: decision makers are more reachable and there is less associated bureaucracy. This also makes them much easier to sell to, meaning far shorter and simpler sales processes. If operators are uncertain whether a mobile PBX is suitable for their customers, they should look for a cloud-hosted SaaS option with revenue-share model. This will involve a partnership with the service provider, splitting the cost of integrating the mobile PBX into the operator s network. This also helps improve time to market and provides a risk-free start. The service will then be branded according to the operator s guidelines and connected to their network, ready to be sold to their customers. Time to market is four to six weeks, meaning a quick return on investment. Small businesses, big opportunities The SOHO/SME segment is a large and important market for telecom operators of any size and in all corners of the world, and this importance is expected to increase in the coming years. Often overlooked, the segment can provide increased revenue and reduced risk to operators that understand it, select the right sales and marketing channels to reach it, and have the most easy-to-use and easyto-buy service bundles to sell to it. Targeting SOHO and SME companies with a mobile PBX will add more lucrative business customers to an operator s portfolio, increase their ARPU through the monthly service fee, engage their customers, and reduce churn. Those that capture the market now will be rewarded with a very strong position and the ability to take advantage of future growth.