The eSIM era – unleashing new opportunities for brands with eSIM technology

Every once in a while, a new technology emerges that rewrites the old rules and creates opportunities that were previously impossible. This is exactly what’s happening with eSIM (embedded SIM) – a disruptive digital SIM technology that is transforming the traditional mobile landscape.

eSIM allows brands across industries to redefine their customer relationships and unlock new revenue streams by offering innovative mobile connectivity and data roaming plans. The eSIM revolution is happening now, with forward-thinking brands like Western Union and Wizz Air leading the way in adopting this game-changing eSIM technology.

But what exactly is an eSIM and why should brands care about leveraging eSIM?

An eSIM is the digital equivalent of a physical plastic SIM card – the swappable component all consumers are familiar with that connects their device to a mobile phone or data service.

SIM cards are dying out now that handset manufacturers are embedding eSIM technology into literally billions of their smartphones and tablets. The result is a fully digital mobile experience.

Mobile connectivity is an indispensable part of our daily lives, especially for people on the move. Traditionally, offering mobile data plans has been the domain of large telco companies that own and run the networks and a handful of brand MVNOs (mobile virtual network operators) with the infrastructure and know-how to plug into them.

eSIM makes it much more convenient for users to switch between network providers and plans. This not only enhances user convenience but also lowers the barriers to any brand that wants to offer mobile data plans to customers.

What are the key use cases for brands to exploit?

One area that’s being heavily disrupted by eSIM technology is international roaming. People are dependent on networks to keep them connected, but this can get problematic and expensive when traveling abroad.

With eSIM, users no longer have to shop for a cheap local SIM card or get hit by high roaming charges for using their devices like they do at home.

By contrast, it’s incredibly easy to buy and install an eSIM tailored to your destination and data appetite. No wonder the global market for travel eSIMs is forecasted to grow by 440% in the next 5 years.

Staying connected is imperative whether you’re a business traveler or heading on vacation. The average spend per user on these margin-rich travel eSIM packages is $5.50/GB, giving customers an attractive 35% saving compared to the alternatives while adding a significant net new revenue stream.

And as it’s a digital service, brands can bundle eSIM mobile data with their main products via their existing digital channels and touchpoints (apps, interactions, loyalty programs), making the overall proposition stickier and more compelling.

It’s a great ancillary revenue opportunity, but there are many more advantages for brands embracing the eSIM revolution.

There’s a growing list of brands that have adopted eSIM as a strategic tool for enhancing their offerings and staying competitive in a rapidly changing digital landscape.

As well as a useful service that consumers will pay for, mobile data plans represent an opportunity for brands to remain connected to their customers. The eSIM-enabled mobile connection is itself a vital touchpoint for emphasizing their brand identity, gathering customer insights, and being the conduit for offering personalized upsell and cross-sell offers that are relevant to each individual.

Using eSIM technology in this way enables trusted brands to forge stronger customer relationships; delivering an improved digital customer experience, increased flexibility, and the ability to offer tailored data plans that meet unique mobile data requirements.

With other brands already offering eSIM-based services to enhance their relevance to increasingly mobile and connected customers, isn’t it time you followed suit?

Contact an eSIM Go expert to embrace the eSIM revolution and unlock its transformational value for your brand.