Frontier Group is on track to more than double net profits this year after rebranding the business and focusing on selling unified comms to high end customers.
MD Andrew Rowley said the move to rebrand from Frontier Telecom to Frontier Group in January this year played a major role in repositioning the company. ‘Rebranding gave us a spur. It gave us a story. We wanted to get away from being perceived as just a telecoms company and have a more rounded approach. So the message became, “We are not just here to do your mobile phones. First of all, let’s look at the whole of your business.” And it has really worked for us.’
The strategy also saw Frontier set its sights on selling unified comms to larger customers. Rowley said: ‘We moved out of the sub-20 employees market where lots of companies are only interested in the shiniest phone. Our new marketing focus is on 20-plus and that has given us much better margins. However it’s not about the cheapest quote but about offering a service above and beyond what is usually offered.’
The Vodafone Silver Partner runs a tight ship with a team of just 10 staff. Rowley said: ‘The focus is on bringing in the high end accounts. Previously we thought we had to be a certain size to go for these but in reality it is about doing a good job with customers looking for added value rather than that box shifting attitude of just signing them up and getting the commission.’
Growth has been strong this year with customer numbers up from 2,300 in January to around 3,750. Rowley said Frontier signs up around four new accounts a month, adding: ‘But if you look at the last quarter, as an example, one of those accounts brought us 150 users and another 220. These deals take longer to land but the value they bring makes that extra effort worthwhile.’
Frontier has also ramped up Vodafone OneNet sales this year. The OneNet play, combined with increase sales across other non-mobile solutions, was pivotal in Frontier achieving Vodafone Solution Specialist accreditation last month, Rowley said.
Frontier’s OneNet customers have increased from three to 14 this year – including a number of substantial wins, including one company with 130 OneNet users.
‘From a revenue viewpoint OneNet is fantastic, with the majority of OneNet customers on five-year contracts. That allows us to plan for the future,’ Rowley said.
Turning his sights on 2015 Rowley is forecasting further strong growth. ‘Our net profit doubled in the last financial year. With five months to go we are looking at similar growth next year.’