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 I’d never let my startups make! Let’s take Vodafone for example.
Vodafone makes newcomers wait 3 months before they can join their £10/month plan 🤯
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. Let’s talk numbers.
The average CAC (Customer Acquisition Cost) of a new mobile customer in the UK is £15.
The average LTV (Lifetime Value) of a mobile customer is £250.
The default rate for mobile phone customers in the UK is 0.2%.
So let’s see.
They spent £15 on a user who actually showed up and asked to be a customer. Then lost £250 when the user went elsewhere. And all of that in order to avoid losing 0.002 * 30 = £0.06.
Say they gave the service for free while the credit cleared. Say they frame it as THEM proving themselves TO THE CUSTOMER that they’re 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 I’m going too far)
It would show Vodafone cares about its customers and wants to provide them with the best possible service. That’s how you build an empire 💪
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𝐍𝐞𝐞𝐝 𝐚 𝟏:𝟏 𝐰𝐢𝐭𝐡 𝐚 𝐬𝐞𝐚𝐬𝐨𝐧𝐞𝐝 𝐦𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 𝐜𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐧𝐭? Hit me up 📆 bit.ly/goempirenow
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