What is Sales and Marketing Strategy of 1&1 Company?

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What is the Sales and Marketing Strategy of 1&1 AG?

1&1 AG's strategic pivot towards its own 5G Open RAN mobile network, launched in December 2023, signals a new era. This move is driving a massive customer migration in 2024, transitioning millions to their new infrastructure.

From its origins in systematized marketing services, the company has evolved into a major internet service provider and now Germany's fourth mobile network operator. This transformation highlights a commitment to building its own secure digital infrastructure.

The company's sales and marketing strategy focuses on leveraging its independent network. This includes direct-to-consumer sales, online marketing, and partnerships to reach a broad customer base. Their marketing efforts emphasize the benefits of their proprietary network, such as speed, reliability, and data security, differentiating them in a crowded market. A key aspect of their strategy involves customer education and support during the migration process, ensuring a smooth transition and fostering loyalty. Understanding the broader market dynamics is crucial, as detailed in the 1&1 PESTEL Analysis.

The company utilizes a multifaceted approach to sales, integrating online and offline channels to connect with a wide customer base. Its primary sales engine is its robust e-commerce platform and official website, which serve as direct avenues for offering high-speed internet, mobile services, and cloud solutions.

Direct Online Sales

The company's official website and e-commerce platforms are central to its sales strategy, facilitating direct customer transactions for its telecommunications and cloud services.

Network Migration and Customer Acquisition

A significant aspect of the 1&1 business strategy involves migrating customers to its own 5G Open RAN network, a process that began in December 2023 and is slated for completion by the end of 2025.

Customer Growth in Mobile Services

The company experienced substantial customer growth, particularly in mobile internet contracts. By the end of Q2 2024, mobile internet contracts reached 12.36 million, and by the close of 2024, this figure increased to 12.44 million.

Partnerships for Connectivity

Key partnerships are integral to its sales and service delivery. 1&1 Versatel manages the nationwide fiber-optic transport network, while collaborations with other carriers ensure last-mile broadband connectivity.

Strategic Network Ownership

The company's strategic shift towards owning its network infrastructure is a pivotal element of its long-term business strategy. This move aims to enhance control over service quality and create a competitive edge.

• The migration of approximately 12 million mobile customers to its proprietary network is a key initiative.
• As of June 30, 2025, over 10 million customers were actively using the company's mobile network.
• Broadband connections saw a slight decrease to 3.95 million by the end of 2024.
• The overall customer contracts increased by 90,000 in the first half of 2024, reaching 16.35 million.
• Understanding these shifts is crucial for analyzing the Marketing Strategy of 1&1.

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The marketing tactics of 1&1 AG are multifaceted, aiming to build brand recognition, attract new customers, and boost sales for its varied offerings. A significant focus is placed on digital channels, particularly for mobile internet contracts, utilizing online advertising, content marketing, search engine optimization, and email campaigns. The company employs a segmented approach, with its primary brand and discount brands like yourfone, operating under Drillisch Online GmbH, each targeting distinct customer groups to optimize 1&1 customer acquisition.

Digital Marketing Focus

1&1 AG heavily invests in digital marketing for its mobile internet contracts. This includes online advertising, content marketing, SEO, and email campaigns to reach a broad audience.

Brand Segmentation

The company utilizes a dual-brand strategy, with the premium 1&1 brand and discount brands like yourfone. This allows for tailored marketing messages to different customer segments.

Traditional Media Presence

1&1 also leverages traditional media, including TV, radio, and print, to promote its position as Germany's fourth network operator. This broadens its reach beyond the digital sphere.

Sports Sponsorship

A key tactic is the main and shirt sponsorship of Borussia Dortmund. This partnership extends to creating engaging social media content, blending sports marketing with digital engagement.

Data-Driven Approach

The 1&1 marketing strategy is increasingly data-driven, focusing on customer acquisition and retention. This ensures efficient allocation of resources for maximum impact on 1&1 revenue growth.

Network Rollout Promotion

The launch of its own 5G network, emphasizing Open RAN technology, is a significant marketing point. This highlights innovation and contributes to Germany's 'digital sovereignty'.

The 1&1 sales strategy is deeply intertwined with its marketing efforts, focusing on customer acquisition and retention through differentiated service offerings. The premium 1&1 brand provides distinct advantages such as the '1&1 Vorteilswelt' and the '1&1 Service Card,' which includes 24-hour device replacement and a priority hotline. This contrasts with its discount brands, which cater to price-sensitive consumers. This segmentation is crucial for effective 1&1 market penetration and understanding how 1&1 acquires new customers. The company's investment in its own network infrastructure, including the rollout of 5G and Open RAN technology, also serves as a key differentiator in its marketing and sales approach, aiming to position itself as an innovative provider. This strategic positioning is vital for sustained 1&1 revenue growth. For a deeper understanding of the company's origins, one might explore the Brief History of 1&1.

Key Marketing Tactics for 1&1

1&1 employs a comprehensive marketing strategy that blends digital and traditional channels to achieve its business objectives. The company's approach is characterized by a strong focus on customer segmentation and leveraging technological advancements.

• Digital advertising, content marketing, SEO, and email campaigns for lead generation.
• Targeted marketing for premium and discount brands to reach diverse customer segments.
• Traditional media advertising to enhance brand visibility as a network operator.
• Sports sponsorships, like with Borussia Dortmund, integrated with social media engagement.
• Data-driven insights to refine customer acquisition and retention strategies.
• Highlighting technological innovations, such as its 5G network and Open RAN, as key selling points.

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1&1 AG positions itself as a premier German telecommunications provider, emphasizing innovation, value, and dependable service. This strategic approach helps it stand out in a crowded marketplace. The brand's core message highlights; 'innovative mobile and broadband products' that are also 'reliable, price-leading, and backed by award-winning customer service'.

Core Brand Message

The brand communicates a commitment to 'innovative mobile and broadband products' that are 'reliable, price-leading, and backed by award-winning customer service'. This is further reinforced by its dedication to 'digital sovereignty' in Germany.

Technological Leadership

The company highlights its pioneering role as the fourth mobile network operator, utilizing Europe's first fully virtualized 5G Open RAN technology. This showcases its forward-thinking approach to network infrastructure.

Visual and Tone Identity

Historically represented by a blue cube, the brand's visual identity conveys modernity and trustworthiness. Its communication style is direct, prioritizing clarity and performance, as seen in the '1&1 Principle' which provides explicit customer promises.

Customer Experience Promise

The company promises a high-quality customer experience with strong support, evidenced by the '1&1 Service Card' and consistently high ratings in independent customer service evaluations.

1&1's brand positioning effectively targets both private households and small to medium-sized businesses through a dual approach. It offers premium services and comprehensive packages for customers prioritizing quality and convenience, while also appealing to price-sensitive segments with its discount brands. This strategy is supported by strong brand perception data. For instance, in 2024, 1&1 received a 'very good' rating for its mobile hotlines in a connect test, with its discount brand, yourfone, achieving an 'outstanding' rating. Further validating its quality, 1&1 was a test winner with a 'Very Good' rating (1.31) in the July 2025 IMTEST and zafaco broadband comparison tests. The company ensures brand consistency across all customer touchpoints and actively leverages its network independence and technological advancements to adapt to market changes. This comprehensive approach to brand positioning is a key element of the Revenue Streams & Business Model of 1&1.

Target Audience Appeal

The brand caters to both premium and price-conscious customers, ensuring broad market appeal. This dual strategy is fundamental to its 1&1 sales strategy.

Independent Test Results

Consistent high ratings in independent tests, such as the 2024 connect mobile hotline test and the July 2025 IMTEST broadband comparison, validate the brand's quality claims.

Brand Consistency

Maintaining a consistent brand image across all channels reinforces customer trust and recognition, a crucial aspect of the 1&1 marketing strategy.

Network Independence Focus

Highlighting its network independence and technological advancements, particularly in 5G Open RAN, differentiates 1&1 in the market.

Customer Acquisition Tactics

The company employs a multi-faceted approach to customer acquisition, combining premium offerings with value-driven options, which is central to its 1&1 business strategy.

Market Penetration

By serving both private and business customers with tailored offerings, 1&1 aims for significant market penetration across different segments.

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Key campaigns for 1&1 have recently focused on its ambitious 5G mobile network launch and customer migration, a significant undertaking that began in late 2023 and continued through 2024 and 2025. This initiative aimed to solidify 1&1's position as Germany's fourth independent mobile network operator and transition its vast customer base to its new, fully virtualized Open RAN infrastructure.

5G Network Launch & Migration Campaign

The core of this campaign highlighted 1&1's technological leadership, promoting its status as operating 'Europe's first fully virtualized 5G network based on Open RAN technology' and emphasizing 'digital sovereignty'. This multi-channel effort involved substantial new advertising to reach a broad audience.

Borussia Dortmund Sponsorship Integration

A key element of the 1&1 sales strategy involved leveraging its main and shirt sponsorship of Bundesliga club Borussia Dortmund. This partnership was used to develop innovative social media content, significantly boosting brand visibility and credibility across Germany.

Customer Growth Metrics

These marketing tactics contributed to substantial customer acquisition, with 1&1 experiencing an increase of 90,000 customer contracts in the first half of 2024, reaching a total of 16.35 million by Q2 2024. By the close of 2024, mobile internet contracts grew by 190,000, totaling 12.44 million.

Network Migration Progress

As of June 30, 2025, over 10 million customers were actively using the new 1&1 mobile network. The company anticipated the complete migration of its existing customer base by the end of 2025, showcasing significant progress in its 1&1 business strategy.

Despite the overall success, the 1&1 marketing strategy encountered hurdles. A temporary network outage in May 2024 and unforeseen issues with network component sizing led to an increase in contract terminations and temporarily slowed customer migration. These challenges impacted contract growth and earnings, offering valuable insights into the complexities of large-scale infrastructure rollouts and customer transitions, a common concern for how 1&1 acquires new customers.

Technological Leadership Messaging

The campaign strongly emphasized 1&1's role as a pioneer in network technology, specifically highlighting its Open RAN infrastructure to attract and retain customers.

Brand Visibility through Sponsorship

The partnership with Borussia Dortmund was a strategic move to enhance brand recognition and build trust, a key aspect of 1&1's digital marketing approach.

Customer Acquisition Focus

The primary objective of increasing customer contracts was met with significant gains, demonstrating the effectiveness of the integrated 1&1 sales strategy.

Market Penetration through Network Upgrade

By migrating customers to its own 5G network, 1&1 aimed for deeper market penetration and greater control over its service offerings.

Addressing Campaign Challenges

The company learned crucial lessons from operational setbacks, which will inform future customer acquisition and retention strategies, as detailed in the Growth Strategy of 1&1 article.

Revenue Growth Impact

While the campaign drove customer growth, the operational challenges temporarily impacted revenue, highlighting the delicate balance in 1&1 revenue growth during major transitions.

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