by Ian Moraes
15. July 2010 15:09
I was reading an interesting article by Daniel Steenkamp who recently reported on factors underlying bottom of the pyramid vision success stories.
Mr. Steenkamp notes a number of important factors including appreciating the market opportunity in addition to the social goodwill that can result from extending services or products to this segment of the market, adopting a business model that promotes socio-economic development of the market, and a rethinking of business processes and market strategies when serving the aspirant community. The banking and communication sectors are realizing that the bottom of the pyramid provides a market opportunity for their services. This aspirant community has not been provided with relevant banking and communication services until recently. Mobile money for the unbanked targets the bottom of the pyramid and extends financial services to the unbanked. Mobile money leverages mobile operator netwo
rks to deliver these services. Similarly, a user in this segment cannot afford to own a mobile phone but wants to be reached and participate in the global mobile community. Virtual Subscriber Service is an innovative service that is being pursued by some leading African mobile operators to provide a user with a mobile number without needing to own a mobile phone.
When introducing mobile money for the unbanked and Virtual Subscriber Service, we should remember some of the points raised in the article I referenced earlier. Engaging with the target market to create viable usable solutions (e.g., using voice interaction rather than text for some communities) and pricing the solutions appropriately are obviously important. However, it is also important to leverage best practices to ensure a successful distribution channel for the services. For example, both type of services depend on a strong distribution network comprising agents to educate, evangelize, sign-up new subscribers and maintain subscribers. These agents need to be knowledgeable on both types of services, ubiquitous, accessible and trustworthy. The attractiveness for an agent becomes more compelling if both services are offered since they require a low cost structure, target the same market, symbiotically increase foot traffic, and constructed so the commission structure will incentivize agents to grow both businesses. For more information on this topic, please visit GSMA Mobile Money for the Unbanked.
Let me know of your thoughts on targeting products and services such as Virtual Subscriber Services for the aspirant community.