SA's first and only mobile virtual network operator (MVNO), Virgin Mobile SA, has started moving on its new strategy to up its presence and service in the local mobile telecoms arena.
In June, Virgin Mobile SA's majority stake was signed over to Virgin Mobile Middle East and Africa (VMMEA), essentially putting the reins in the hands of Dubai's leading MVNO Friendi Group, which now holds the controlling stake of 55%. The remaining 45% share is owned by investment company Calico.
About two months down the line, under Friendi Group's umbrella, Virgin Mobile SA - as it will continue to be known - has outlined its market strategy. Its immediate focus is on reducing its physical presence in terms of stores, and improving and fine-tuning the customer experience.
Fresh focus
Virgin Mobile SA said in a statement yesterday that the recent ownership transfer has given the operator a “renewed focus on delivering a true Virgin customer experience at every customer touch point”.
The MVNO says its aim is “to deliver an improved and differentiated customer experience by leveraging VMMEA best practice and investment in improved systems and processes across all aspects of Virgin Mobile SA's operations”.
The initiative, says Virgin Mobile SA, is already under way and is expected to conclude during the first half of 2013. The “fresh start” is geared towards improving operations across the board - including in store, online and over the phone.
As part of its plan to accomplish this, Virgin Mobile SA says it will reduce its store footprint to just eight stores in key locations across SA's provinces - Gauteng's Eastgate, Southgate, Key West and Cedar Square; Western Cape's Canal Walk; the Pavillion and Galleria in KwaZulu-Natal; and Mall of the North in Limpopo.
Newman says the eight stores - reduced from 38 - will offer the entire range of services and products and be fully serviced and run by Virgin Mobile SA and its employees. Up until now the stores have been franchise-run and owned. “The other 30 stores are being handed over to the franchisees, together with their staff members, and they will use the stores as a group for a different purpose, which will not be connected to Virgin Mobile.” He says he cannot divulge details of the said purpose at this point.
Future forays
For the remainder of the year, says Newman, Virgin Mobile SA will roll out platforms and improve channels - with a view to increasing those over the next 12 months. “Once we have our new platform in place, we will be bringing out new products, which will complement our already competitive range.”
In addition to consolidating its physical presence in terms of points of sales, Newman says the operator is looking into alternative means of engaging with the customer, including online and inbound systems. “Between now and the end of the year, we will refresh the Web site and improve the online buying and service experience considerably.”
Virgin Mobile SA, which operates off Cell C's network, currently has about 400 000 subscribers, and as such holds a marginal share of the mobile market in SA - comprised of the Vodacom-MTN duopoly and smaller players Cell C and 8ta.
Newman says the operator's subscriber base has seen “steady growth”, which it seeks to grow, “especially next year as we roll out more channels and the like”.
Virgin Mobile SA is currently headed by Anton Landman, its recently appointed chief financial officer, pending the appointment of an identified, but as yet unnamed replacement. Newman says the inauguration of the new CEO is another point of focus for the operator this year.
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