Case Study
A US wireless provider needed to stem customer defection after competitors threatened its position as a leader in the low-end segment. Bain helped the company develop a strategy to quickly restore its leadership position and sustain strong future growth amid a quickly evolving competitive landscape.
Wireless ProviderCo's* highly successful growth strategy — offering flat rate cell phone service to the low-end of the market — was under attack.
Competitors took aim at Wireless ProviderCo's customer base after growth slowed among the premium segment.
Customer satisfaction plummeted, spurring defections. In such a rapidly shifting landscape, Wireless ProviderCo was unsure how to regain its leadership.
Working with the CEO, we assessed industry trends to determine the future of the wireless market as well as the company's competitive position.
Based on the findings, we developed three market options for Wireless ProviderCo, playing out each alternative and the possible economic outcomes, and helped Wireless ProviderCo's executive team select a strategy.
We also developed a flexible pricing structure and worked with Wireless ProviderCo's team to design a roll-out plan for the pricing structure.
Wireless ProviderCo's flexible pricing structure quickly attracted a record number of new customers. Year on year, new sign ups increased by over 50 percent; net profits rose over 35 percent and customer churn dropped.
The dramatic turnaround restored investor confidence: in the 10 months after we started our work, Wireless ProviderCo's stock price shot up 60 percent while its closest competitors' stock value declined.
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.
