Research: Top CVM Challenges for Telecom Operators in Africa and MENA

Across Africa and MENA, subscriber acquisition is no longer enough to drive growth. Customer bases are already mature, many subscribers use two or three SIM cards, and switching operators for a few cents in savings is common. To grow revenue, operators need to generate more value from the customers they already have. That makes CVM a critical growth function. Eastwind interviewed CVM leaders and specialists from operators in 11 countries to see how customer value management works in these highly competitive markets.

The interviews covered everything from data practices and revenue generating channels to the regulatory rules that shape how operators can engage their subscriber base. Six challenges emerged consistently:

• Intense competition and price sensitivity. Subscribers have little attachment to either their phone number or operator brand. In this environment, traditional churn loses much of its meaning. The real battle is for share of wallet.
• Low trust in operator channels. Fraud has made many subscribers wary of operator apps and SMS. As a result, they often stay with USSD, which limits the amount of customer data operators can collect.
• A wide gap in AI and ML maturity. Some operators already use dozens of models and serve offers in real time. Others are still putting the basic infrastructure in place.
• Heavy reliance on traditional channels. USSD, SMS, and voice still underpin most CVM activity. But SMS is losing effectiveness, while messaging apps remain largely disconnected from the CVM ecosystem.
• Regulation as a strategic constraint. Bans on personalized offers, data localization and separation requirements, and SIM verification rules do not simply modify CVM processes. They define what the CVM strategy can be.
• Human capital challenges. In Africa, the main constraint is a shortage of CVM expertise. In MENA, it is often skepticism at the management level.

The final section explores which of these challenges a modern CVM system can address, using EW Marketing Platform as a practical example.