Are you ready to profit from Wireless LNP?
 
After many years of delay, Wireless Local Number Portability is now here as of Nov 24, 2003.    Most analysts and carriers predict there will be some major changes in the industry including extremely aggressive pricing to attract new customers,  and a huge increase in customer churn and gross activations.   This presents a significant opportunity for the Wireless Dealer to capture incremental sales.
  
Wireless Local Number Portability Projections:
 
*Charles Schumer (D-NY) who backs WLNP commissioned a survey from consulting firm TMNG where results projected that 42 million customers would switch their mobile phone carriers if they could keep their numbers.
 
*TMNG  reported more than 70% of wireless customers surveyed said that keeping their wireless telephone numbers was “very, or somewhat” important to them.  Also:
 
-27% of customers said they would leave their current provider as soon as they  received a better offer, if they could take their phone number with them.
 
-17% said they would move their current fixed/landline phone numbers over to wireless phones if possible
 
-6% of users surveyed said they would switch carriers soon after WLNP is implemented (approx 8 million customers)
 
*The increase in customers switching carriers could result in an additional 30 million gross customer additions for 2004.
 
*When WLNP was implemented in Hong Kong churn increased to around 70% annually.        (Current US churn is approx 32%)
 
What does all this mean?
 
With WLNP, the opportunity to capture new qualified subscribers almost doubles.   Because consumers will no longer be tied to a carrier because of their telephone number, they will be more inclined to change carriers once their contract is up.   There already is much confusion with consumers being bombarded with new offers and rate plans etc.  Dealers who have a strong program in place to capture this flurry of activity in 2004 will benefit, while others who stand by will suffer in the long run.

How should Wireless Dealers prepare for this opportunity?
 

1. Build a database of existing wireless customers, (current customers and any potential customers who have inquired through your advertising or retail stores including:
   1. Contact information
   2. Current Carrier
   3. Contract Expiration date
   4. Current rate plan

2. Make it easy for the customers to do business with You.  Use a professional Call Center.
   1. Utilize a professional call center to capture sales and customer data from consumers who respond to Dealer advertisements.   Probably the most critical element in building the database.  Consider that the average Dealer retail store does not have the infrastructure in place to:

i.      Professionally take inbound scripted calls 7 days per week.
ii.      Measure response rates from advertising (determine what advertisements work & what doesn’t)
iii.     Handle more than 2 calls at on retail location
iv.     Capture critical consumer data & build your database

2. Utilize the Call Center to increase sales and maximize the return on Dealer.   Make the sale when the consumer is  hot (allow the consumer to call and order when  they actually have the Dealer advertisement in their  hand)   Many people prefer to purchase over the telephone and would        rather have a phone convenienlty delivered with out having to go through the hassle of driving to a retail location to speak directly to a sales person.     By allowing the consumer to choose whether to purchase over the telephone with delivery option,  or to walk in via traditional retail, expect a minimum of a 15% increase in sales 
2. Spend your coop dollars wisely:
1. Use targeted Direct Mail to hit qualified potential customers around Dealer stores.  Reach people who will pass carrier credit requirements.  Target people within the buying radius/zipcodes of your retail stor
2. Don't wast coop dollars advertising to people who simply cannot buy from you....ie..consumers are 
   too far away from your store,  and those who will not pass credit. 
3. Be prepared to offer some very aggressive promotions.   Consumers will be ready to change carriers but where will they go?   We create promotional offers that consumers can only get from you, the Dealer.   The competition will be fierce,  so plan to keep the customers you advertise to…..out of the competitor’s stores.