Collaboration between diverse industries - Cloud offering for a retailer
Yes, you guessed it right T24. So how does this model work? Typically we do shopping at mom and store and get some minimal price discount. So if we club together the entire price discount and do shopping at one location, we get a sufficient amount equivalent to the typical Average Revenue Per User (ARPU) figure in telecom industry. This is an innovative model. The retailer is able to retain their existing customer base of loyal customers and motivates the customer to stock or buy at a slighter higher than usual market basket volumes. The discount offered on the market basket, has slabs equivalent to call time (free talk time). Additionally for the retailer new customer base is created, with larger customer segment moving to the retailer store to do their shopping. The shelf space is getting consumed at rapid pace, so that all the FMCG players are happy. The retailer is able to use the newly launched direct communication link with the customer base, with targeted marketing offers - customized and location sensitive.
Now, let us look at this model from the participating telecom provider perspective, every location coverage area (circle in telecom parlance) has had tie up with the new entrants collaborating with the retailer. These telecom providers is now able to push volume sales of pre-paid services to customers, as they had larger unutilized network space, that could be offered to the customer e.g. less clogged lines (minimal subscribers). This innovative model allows the new entrant obtaining a larger ARPU without any marketing effort and also creates a loyal set of customers, who may subscribe to value added services. We can see, mass migration of existing user base from top service providers to the entrants telecom provider base.
So what does this blog imply, it states that collaboration between diverse industries offers possibility to push products in an already saturated market. This is a case of business innovation, with SAAS as the underlying model. For the retailer the marketing platform has been pushed to the telecom provider, with a hosted in the cloud model. Yes, the limit to such collaboration is limited by our imagination. So let us imagine a better world.
