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We sat down with Mario Cavestany, a key member of the Kindred advisory board, to hear his insights and thoughts on the issues that telcos are facing, and how Kindred can help solve them!
Telecom companies, known as Communication Service Providers (CSPs), face ongoing challenges in a dynamic industry. These challenges include battling new competitors, managing global and local competition, addressing the rise of MVNOs, balancing cost reduction with revenue growth, and staying abreast of emerging technologies like Cloud, AI, Quantum, Network Virtualization, and Edge Computing. CSPs are also exploring alternative revenue sources such as TV/Video services, Energy, Payment systems, Home Security, and Home Digitization. The key struggle for telcos, especially in Europe, is to help consumers deal with the overall economic situation not only by offering low cost services but at the same time avoiding being seen as mere "dumb pipes" and instead offer unique value propositions…all this while finding enough revenue sources to tap on to allow them to develop 5G.
To overcome these challenges, CSPs must adapt to the evolving landscape by embracing innovation, integrating new technologies, and diversifying their offerings. They need to differentiate themselves by providing personalized experiences, innovative services, and value-added solutions. By understanding the competitive environment and continuously evolving to meet customer demands, telecom companies can position themselves for growth and success in the market.
What is the big opportunity for telcos within e-commerce?
Telcos have a significant opportunity to leverage e-commerce, similar to how major streaming platforms capitalize on content consumption. While Communication Service Providers (CSPs) are fighting to get their “fair share” as it is known in the industry, willing to earn revenue from every movie their users watch, it stands to reason that they could also tap into the revenue generated from every e-commerce transaction their clients make over their networks…well, this is what Kindred can bring to them!
How does Kindred merge with e-commerce to support telcos in combatting these challenges?
In less than a year, Kindred has engaged with more than 20 top service providers worldwide, some of which are already preparing to integrate Kindred's solution. Kindred offers a simple solution where it splits its e-commerce commission from over 250,000 global retailers. With Kindred's network of merchants representing over 70% of top e-commerce brands globally, telcos can tap into 1-2% of revenue generated from every online transaction. The way Kindred shares its commission is not only innovative but also easy to implement, with zero integration costs for CSPs. It can be seamlessly integrated into a CSP's app, maintaining their brand identity and user experience. From an end-user perspective, it's as simple as installing a browser extension on their mobile devices.
In what ways does Kindred's solution enhance customer loyalty for telecom companies?
Kindred's solution offers a range of benefits that greatly enhance customer loyalty for telecom companies. By integrating with the usual telco user-app wallet, Kindred's SDK enables users to collect commissions from merchants and brands, which incentivizes them to open their wallet app and watch their savings grow from their e-commerce activity. This creates user stickiness, increases app traffic and usage, and aligns with the objectives of communication service providers (CSPs). Additionally, Kindred's solution acts as a magnet for attracting new or dormant users, further bolstering customer loyalty for telecom companies.
Can you share any success stories or testimonials of telecom companies that have already implemented Kindred's SDK and experienced positive results?
One notable success story is the partnership between Kindred and O2. In June 2022, they collaborated to create the 'Feel Good Shopping' feature for the 'My O2' app. With this feature, users receive special discounts for each purchase they make, and a portion of the proceeds goes towards initiatives such as reforestation, carbon offsetting, or digital inclusion. O2 has experienced significant positive outcomes through this collaboration, though specific updated statistics would need to be provided to showcase the extent of their success. This success story is just one of many examples demonstrating the positive impact of Kindred's solution for telecom companies.
Are there any specific metrics or KPIs that telecom companies should track when implementing Kindred's SDK to measure its impact on revenue and loyalty?
Telecom companies implementing Kindred's SDK should track various metrics and KPIs to measure the solution's impact on revenue and loyalty. These may include Average Revenue Per User (ARPU), Customer Retention Rate (CRR), Customer Lifetime Value (CLTV), and Net Promoter Score (NPS). Additionally, it is important not to neglect metrics related to Brand Awareness and Environmental, Social, and Governance (ESG) contribution. Brand Awareness can be enhanced as the CSP logo is presented each time users shop, while ESG contribution aligns with Kindred's initiatives and can positively impact a company's social and environmental footprint.
Can you elaborate on the potential long-term benefits for telecom companies that choose to partner with Kindred? How does it contribute to sustained growth?
Telecom companies that partner with Kindred can benefit from a range of long-term advantages that contribute to sustained growth. One key benefit is derived from enhanced customer loyalty, which drives recurrent revenue, increases ARPU, Word-of-Mouth (WoM) referrals, and boosts CLTV based on overall customer satisfaction. Kindred's solution, with its ease of use and value for money, significantly aids in achieving these outcomes. Moreover, Kindred's social mission plays a vital role in creating brand perceived value. By tapping into people's core values and beliefs, Kindred helps telecom companies build brand value and establish themselves as tech-for-good companies. Furthermore, Kindred's initiatives for reducing carbon footprint, along with partnerships with reputable global institutions, contribute to environmental sustainability, aligning with the growing demand for responsible and ethical business practices.
What sets Kindred apart from other solutions available in the market when it comes to supporting telecom companies? Why should telecom companies consider partnering with Kindred?
Kindred stands out from other solutions available in the market for its unique combination of simplicity, effectiveness, and wide-ranging partnerships. Unlike complex solutions that require significant resources to establish, Kindred's approach is designed to be easy, fast, and free. This simplicity has been a key factor contributing to their success in partnering with some of the world's largest telcos, energy companies, gaming studios, and more. Additionally, Kindred's impressive progress is evident through recent agreements with leading brands such as Samsung, which will make Kindred's browser extension available to over 500 million global devices overnight. Telecom companies should consider partnering with Kindred because it offers a seamless and efficient way to tap into e-commerce and contribute to credible ESG initiatives, meeting the demands of today's consumers.
And lastly, why did you decide to join Kindred as an Advisor?
I decided to join Kindred as an Advisor for several compelling reasons. First and foremost, witnessing Kindred's evolution, innovation, and dedication to their social purpose deeply engaged me. I am inspired to support an amazing team where learning never stops, and I am encouraged to contribute my ideas and experiences to this tech-for-good company. Furthermore, having previously worked for a company focused on "changing the world" like IBM, I recognize the potential for Kindred to make a significant impact in the e-commerce world. Joining Kindred allows me to be part of this exciting journey and contribute to their mission of creating a positive change in the industry.
