2014-05-07

Community driven network provider. The future Gen Y business model. A GiffGaff study.

As a millennial I love social and community driven projects online. You may have seen my review of Gen Y focused business Unroll.me and to continue this I followed up with community driven mobile; one of the most consumer focused markets which currently exists.

I stumbled upon Giff Gaff due to my frustration with my previous mobile phone network provider. The bills were huge, I was tied into a 24 month contract purely due to my inner Gen Y requiring the latest handset available (which ironically is out of date by the end of your contract) and the network coverage in my area was poor. What was I actually paying for?

I always like to support the underdog and if the underdog is also cost efficient the underdog will win 10 times out of 10.

Price Attracts Generation Y:

Before anything else millennials are becoming more price conscious. We’ve grown up in the era of price comparison and flash sale websites. We know how to spot a great bargain. On my search for a mobile network provider GiffGaff tied with another network on the price point.

Millennials tend to use the internet extensively when making even the simplest purchase. The internet typically offers unbiased, user generated reviews or feedback. From a price perspective GiffGaff was a leading provider.

Flexibility:

Generation Y seek flexibility in all walks of life. Whether it’s work/lifestyle or even mobile providers. All GiffGaff deals are Sim free. Plug in your sim and off you go. Need to travel? No worries you won’t be charged a dime for that month.

This flexibility works for those who don’t want to be stuck within the constraints of typical phone contracts and allows for changes to lifestyle to not impact financially.

Marketing Message:

The marketing message throughout the GiffGaff website is ‘We’re all the boss’ focusing on it’s customers as ‘members’ of one big happy family. One look at the ‘All the Boss’ page and it’s clear the target demographic is young creative individuals.

Emphasis is placed on the freedom and the ability to express yourself. The sim only deals and flexible bundles further enforce this. GiffGaff is aimed at those wanting to be part of a movement; something unrestricted by lengthy contracts and rigid plans.

This matches perfectly with key characteristics of millennials. GiffGaff are targeting a generation of mobile users like no other. It’s clever marketing and a clear message of their intended customer focus.

Promotion:

GiffGaff rely mostly on user generated reviews (Like this one) and it’s members to spread the efficiency of the service. Again this links with what millennials love to see in an organisation. Most millennials do not like to be marketed at they prefer to make their own decisions based on peer reviews.

GiffGaff also rely on price comparison websites which often promote them as the best buy option. This is further enforced by the awards won by the organisation. GiffGaff promote through a clear marketing message and a strong community of advocates. These are the makings of any successful marketing strategy.

There is also a rewards system where you are given GiffGaff credit for referring new users. This helps considerably with the viral effect of user sign up’s GiffGaff are looking to achieve. By incentivising users you are more likely to create brand advocates, keep existing customers happy and build upon your success. Here is my GiffGaff referral key.

User Driven Improvements:

GiffGaff actually practice what they preach when it comes the ‘We’re all the boss’ slogan as they recently implemented a number of user driven improvements to their goodybags (Goodybags are basically the equivalent to a monthly contract). The goodybags were subsequently tweaked and refined based upon community feedback.

Again as a millennial child this appeals as we love brands which listen to customer feedback and act upon it. Most faceless brands struggle to do this. The implementation of these changes showed that GiffGaff appreciate their core customer base.

User Driven Support:

Many negative reviews of the GiffGaff service will focus on the lack of phone support and the need to access the GiffGaff community to find answers to your queries.

Given the target demographic of GiffGaff this is hardly surprising. The emphasis on community and having self control means you have to access your own support via the community of fellow GiffGaff members. Let’s not play this down however the support I have received thus far has been incredible. By searching the forum you can find any query you may have and the amount of available resources online is incredible.

Instead of having to pick up the phone and talk to a generic call centre operator you are provided documentation to answer any queries you may have. If it’s an obscure query then I am confident the support forums will be able to help.

The process of moving from one network provider to another is handled painlessly.

Does it actually work well?:

If used correctly from the beginning then GiffGaff works no differently than any other network provider. GiffGaff use Goodybags which operate as your monthly ‘quota’ and can be set as re occurring on a monthly basis without having to lift a finger. Think of this like any other pay monthly mobile phone package you have had.

I opted or the £10 a month package which afforded me 500 minutes, Unlimited texts and 1gb of data. Given I am connected to Wifi at home and at work I used approximately half of my first month’s data.

In relation to coverage I was impressed. My 3g coverage worked other than on 3 occasions but soon picked up as I moved into a different area. Phone signal wise it’s far superior to my previous provider.

Given previously I was spending £480 a year on my monthly service it’s quite a saving.

Community driven business model:

GiffGaff has impressed me hugely. Sure I haven’t updated my mobile to the latest model which I didn’t need but what I have gained is the involvement in a community driven business where you are rewarded for your efforts.

Members are encouraged to participate and spread the word on the business.  Creating more advocates and more ‘members’ is the strategy GiffGaff employs; a strategy which I feel plays perfectly into the interests of the y generation.

I have no doubt GiffGaff will continue to flourish and will pathe the way for more community driven business models. As a generation we like this approach and like to be part of a change. GiffGaff offers involvement like no other network does. They’ve certainly made me an advocate.

Interested in checking out GiffGaff or signing up? Click here

The post The virtual phone network targeting Generation Y. Giff Gaff Review appeared first on Generation Y.

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