Two-way messaging: The secret to how MVNOs are cutting churn and boosting loyalty

The way customers engage with telco and MVNOs has changed—and expectations have never been higher. In a fiercely competitive MVNO market, where churn rates hit 20-30% annually and customer acquisition costs $20-$50 per subscriber, one-way SMS sends simply fall short. With 71% of consumers now craving the ability to text businesses back—up 18% from last year—customers demand real-time, two-way conversations. 

Two-way SMS is a game-changer for MVNOs, tackling pain points like high churn, tight margins, and the pressure to deliver standout experiences on a lean budget. By enabling human-like interactions that build trust and streamline operations, it’s a powerful tool to boost loyalty and keep customers from jumping to competitors.

So let’s uncover why two-way SMS is a must have for MVNOs, how it directly addresses your toughest challenges, and the best ways to implement it in your ongoing strategies.

The case for two-way SMS in the MVNO world

1. Slash churn with proactive engagement

MVNOs face churn rates as high as 20-30% annually with a lot of that attributed to service quality, pricing and lack of engagement. One-way texts leave customers feeling unheard, pushing them toward competitors with better support and engagement. Two-way SMS helps you stay ahead of things by opening up proactive, helpful conversations.

Example: "You're down to 10% data—want to top up 2GB for $4.95? Reply yes to confirm."

Effective opt-in messages like this reduce billing surprises and show customers you’re on their side, cutting churn without costly retention campaigns. Pendula also offers natural language messaging, so customers can reply just as they would a friend like “of course!”, “chyea” or “yeah please.” 

2. Streamline support without breaking the bank

MVNOs often operate with lean teams, making traditional call centres or app-based support a strain on resources. Two-way SMS, powered by AI-driven automation, handles repetitive queries—like “What’s my balance?” or “How do I top up?”—with instant, automated responses, freeing up resources for complex issues.

Example: "Text BAL to check your data and minutes."

By integrating AI-driven decisioning and agents, you can resolve up to 11-30% of customer support volume via SMS, reducing support costs while keeping customers happy.

3. Simplify onboarding to win customers early

75 to 85 percent of an MVNO’s cost structure involves variable charges like customer acquisition expenses. A clunky onboarding process can waste that investment. Two-way SMS guides new users through SIM activation, plan setup, or roaming questions, with the option to reply for help. This process can be done even more efficiently with AI agents that can help determine the responses of customers and direct them to solutions using in-built FAQs.

Example: "Welcome to ConnectSphere! Please reply with any questions you may have on setup and we will assist you promptly."

This approach boosts activation rates and sets the tone for a customer-first experience from day one.

4. Boost revenue with smart upsells

With razor-thin margins, MVNOs rely on upsells and cross-sells to stay profitable. Two-way SMS delivers personalised offers at the right moment, without feeling pushy.

Example: "You’ve used 7GB this month. Let us know if you would like to switch to our 10GB plan for $4 more."

This contextual approach achieves conversion rates up to 45%, significantly outperforming email’s 6% response rate, due to personalised, direct engagement. It maximises revenue without added acquisition costs.

5. Capture feedback to build loyalty

MVNOs often lack the resources for robust customer feedback systems, yet understanding sentiment is critical to reducing churn. Two-way SMS provides a low-cost, real-time channel for NPS surveys or post-interaction check-ins.

Example: "How’s your service with us? Feel free to give us a rating and any additional feedback."

These insights help you address dissatisfaction early, fostering loyalty in a market where 39% of MVNO customers switch providers due to poor service. Using these responses together with AI agents that can conduct sentiment analysis, allows for you to be able to segment unhappy customers and send them into conversations with support or additional offerings in place. This can greatly help reduce churn and also give timely support to your customers.

MVNO use cases: Where two-way delivers on ROI

• Billing and account management: Let customers check balances, update payment info, or resolve billing issues via text, reducing call centre volume.
  
• Recharge and top-up triggers: Send timely prompts when data or minutes run low, with one-tap replies to add funds.
  
• Network outage alerts: Share updates on outages and let customers reply for more details, maintaining trust during disruptions.
  
• Retention campaigns: Re-engage inactive users with personalised offers, like bonus data for returning.
  
• Customer support automation: Resolve FAQs instantly, escalating only complex issues to agents.

For more use case examples and best-in-class strategies, check out our Two Way SMS Use Case Guide to see how other MVNOs are making it work right now.

Getting started with two-way SMS for MVNOs

• Choose MVNO-friendly tech:  Look for a platform that supports two way communication, integrates with your existing systems (like your CRM or marketing automation tools), and offers features like message tracking, automation, and personalisation. This ensures you can track engagement and measure ROI, keeping your lean MVNO operation efficient.
• Prioritise high-impact flows: Focus on SMS flows that deliver immediate impact, like prompting data top-ups, guiding new users through onboarding, or resolving support queries. These quick wins boost retention and reduce support costs without overhauling your systems.
• Leverage automation: Use automated replies for FAQs like balance checks or recharge options, and design AI-driven flows that adapt to customer needs. This creates a seamless, personal experience while slashing support overhead for your MVNO.
• Stay compliant: Align with regulations like TCPA and GDPR by securing opt-in consent and providing clear opt-out options. Compliance builds trust, protecting your brand and keeping customers engaged.
• Craft conversational messages: Write SMS that sound human and reflect your MVNO’s brand, avoiding robotic tones or simple one word replies. A friendly, relatable voice strengthens customer loyalty and sets you apart in a crowded market. 

Ready to transform your customer experience?

Two-way SMS is more than a tool—it’s a strategic advantage for MVNOs battling churn, tight budgets, and fierce competition. By enabling real-time, two-way conversations, you can deliver the personalised, efficient experiences customers expect, all while optimising costs and driving revenue.

At Pendula, we specialise in helping MVNOs implement two-way SMS strategies that are automated, compliant, and tailored to your unique needs. From onboarding to retention, we make it easy to connect with customers on their terms.

Ready to see the impact? Request a conversation and let’s explore how two-way SMS can elevate your MVNO strategy.