Our Competitive Numbers

Executive Summary

The Economics of Traditional Customer Acquisition

A new telecommunications brand typically builds an audience via paid distribution networks,  television, digital media, search and social platforms to reach customers and mitigate churn.

A high up front cost exercise that never ends. Maintaining frequent exposure to an audience of approximately 100,000 New Zealanders throughout a year typically requires a marketing budget measured in millions of dollars.

Looking something like this:

Sacred Health owns its own Distribution Network

Sacred Health has built a three-layer distribution network that combines trusted organisations, owned media and independent creators into a single customer acquisition engine.

Viewed on a like-for-like basis, replicating the reach, frequency and credibility of this platform through traditional advertising would require a marketing investment many times greater than the media budget outlined above—and even then, the campaign would end. Our platform continues to grow in reach and value every time a new partner joins.

The following sections describe the three layers that make up our distribution platform.

Layer One – Trusted Distribution Partners

The foundation of our platform is a growing network of organisations that already possess trusted relationships with highly engaged communities.

These organisations include advocacy groups, community organisations, podcasters, retailers and other influential voices whose audiences have voluntarily chosen to follow and support them.

Unlike traditional affiliate marketing, these are genuine commercial partnerships.

Each organisation is contracted to our platform to actively promote our products and services to their audience.

In return, they receive not only an ongoing share of the revenue generated by their community but a massive media boost (Layer 2).

The result is complete alignment of incentives.

Partners are motivated to continually communicate with their supporters because every new customer directly benefits their own organisation.

Our objective is to become the commercial engine that financially strengthens the organisations we partner with.

Layer Two – Our Owned Media Network

Solving our partners problems.

Producing consistent, engaging content is one of the greatest challenges facing our partner organisations.

Most possess loyal audiences but lack the time, skills or resources to produce professional media on a continual basis.

Sacred Health solves this problem for them.

Through our sister media organisation Frontline XN, we write, produce and distribute professionally created podcasts, interviews and educational programming on behalf of our partners.  Each and every piece of content carries a partner endorsed promotion of our products/services that benefits the organisation. ''Support us, support you''.

Rather than asking organisations to generate content themselves, we become their production team.

Each weekly programme is divided into multiple shorter episodes that are released throughout the week directly to the partners audience, across email, YouTube, Facebook, X and other digital channels as well as the Frontline Network.

This keeps partner organisations and our product/service message continually in front of their audience without increasing their workload.

Every piece of content strengthens the relationship between the organisation and its supporters while simultaneously providing opportunities to introduce products and services aligned with their values.

Layer Three – Independent Creator Network

Alongside our partner organisations we are building an expanding network of independent podcasters and content creators.

These creators already possess established audiences and trusted relationships developed over many years.

Each creator agrees to incorporate our promotions within their regular programming.

Unlike traditional advertising, these promotions occur within trusted conversations between creators and their audience.

The result is significantly higher engagement and substantially greater credibility than conventional paid advertising.

Our initial creator network has already been established, with additional creators currently progressing through partnership discussions.

Collectively, this creates another scalable distribution layer that continues to grow over time.

Lets Review the  Economics again
 

Our launch pad as of today:

The distinction is fundamental. Traditional MVNOs invest in advertising to acquire customers. Sacred Health invests in building permanent distribution.
 Every new partner expands our audience, every programme strengthens engagement, and every new creator increases our communication reach. Unlike advertising, these assets continue to generate customer opportunities long after the initial investment has been made.

The Compounding Distribution Model

The strength of the platform lies in its ability to compound.

Every new partner brings four valuable assets:

• A trusted audience

• Existing communication channels

• Recurring content distribution

• A commercial incentive to continue promoting the platform

Unlike paid advertising, where every campaign begins from zero, each new organisation permanently expands the network.

As more partners join, the platform becomes increasingly valuable for every participant.

Each additional organisation expands audience reach, increases content distribution, strengthens the brand and creates further opportunities for recurring customer acquisition.

Growth therefore compounds rather than restarting with every campaign.

Why This Matters to 2degrees

The Business Case

Every wholesale partner ultimately competes on one measure:  their ability to acquire and retain customers.

Most MVNOs begin with access to a telecommunications network and then attempt to build a customer base through ongoing advertising. Growth is therefore constrained by marketing budgets, making customer acquisition their greatest challenge and their point of difference is always a variation on price.

Sacred Health is powerfully and uniquely stronger. We have taken a different approach.

We have already  the most difficult part of any MVNO—the ability to consistently acquire and retain quality customers. Rather than relying on future advertising investment, we have built an established distribution platform comprising trusted organisations, owned media, independent creators and recurring communication channels. Giving us direct ownership of the audience. This reduces execution risk and provides 2degrees with a wholesale partner whose core capability aligns directly with the primary challenge of growing telecommunications services.

2degrees is in the race against Spark and One for market share.  The challenge is finding partners capable of consistently bringing new households into the network at pace and scale. We believe Sacred Health represents that type of partner in the extreme. Our proven and scalable customer acquisition platform designed to grow recurring household relationships represents a significant asset to your goals. That is the capability we bring to this partnership.

We are not asking 2degrees to back another MVNO. We are asking 2degrees to partner with a business whose primary investment and success has been in solving the hardest problem in telecommunications—customer acquisition and retention.