When purchasing a new digital service, be it Netflix or Spotify, customers complete the on-boarding process and then start using the service directly. For most mobile subscribers, there is usually a delay of several days between on-boarding and using the new service because subscribers have to wait until a SIM card is posted to them. It doesn’t really provide the ‘buy now / use now’ digital experience that customers are accustomed to with digital services.
Only the popularity of SIM deals and the growing number of currently available mobile phones and other eSIM connected devices suggest that CSPs can provide a better and faster onboarding experience for new customers. New customers using iSim can go live within minutes of the day.
The on-boarding process is quite sleek for most CSP new clients. Personal details, payment details, and in some cases a few forms for photo recognition for security purposes, can be done in minutes. If customers are lucky enough to have the option to select eSIM at this stage of the onboarding process, they can go live within minutes.
Since eSIM offers activation within minutes, it is ideal for customers to try out a new service and promote entry offers for CSP. The key is that new customer onboarding can be done within minutes using automatic isim activation as part of the digital know-your-customer process. This is much more efficient than the alternative, in that the actual SIM card can be delivered via registered post, meaning the customer has to wait at home to sign for the SIM card.
If the customer is not at home at the time of arrival, the postal service will leave a note to arrange another delivery. Some CSPs have a solution for SIMs that are not delivered – if the SIM is not delivered within 10 business days, the customer should be contacted and a new SIM will be arranged. But that’s two weeks. There are options like collection kiosks, but these are still much less efficient than the ISIM.
Adding a few days to the otherwise efficient digital-first on-boarding process seems like a bit of a waste. As more CSPs offer e-SIMs and as we increasingly move to SIM-only contractless subscription type-deals, there is more pressure on CSPs to retain customers by providing a better experience and better service. eSIMs can help here and enable CSPs to build a ‘stickier’ relationship with their customers by creating a range of eSIM enabled offers / products that can be bundled together.
As more devices connect, eSIM allows operators to start selling connected devices as part of convergent offers. It can cover everything from a 5G network to home security to wearables and smartwatches.
One of the major problems with eSIM is that people just don’t know about it. In 2021 GSMA Reported that only 20% of customers are aware that eSIM exists. So there may be an opportunity for CSPs offering ISIM to promote ‘Buy Now / Use Now’ message.
On holidays, like Christmas, when many kids will get their first mobile, the ability to mobile up and run on Christmas day can be an interesting option. If a customer searching for a new mobile service sees that they can be live within minutes of the day, it will probably help them decide which CSP to choose.
Then there is the environmental argument. Many CSPs have strategic green initiatives and proudly promote them on their websites. However, in 2020, 4.8 billion traditional plastic SIM cards were shipped by CSPs, producing 20,000 tons of waste plastic. By eliminating the cost of a physical part of the equipment and the associated warehousing, production and supply in terms of pollution, it is environmentally friendly, no matter how small a step it may seem.
The rise of digital-first operators is seeing an increasing step in digital-first services. Moving to e-SIM speeds up the on-boarding process for new customers by several days, it also enables more e-SIM enabled devices to connect and sell to a CSP’s customer base. This, and the ecological argument, suggests that the days of traditional plastic SIM cards are numbered and that ISIMs are a convenient and sustainable choice.
