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Tenure- and Usage-Based Loyalty Tariffs

This is the second of two Mobile Market Development reports focusing on Loyalty Tariffs. In this report, we provide detailed profiles of innovative tariffs that reward increased customer tenure and/or usage with preferential rates. In contrast to 'Group based tariffs' such tariffs are generally available to all individuals within the customer base.

While it is difficult to isolate the churn prevention value of tariffs which are offered to the entire customer base (no control groups are available for comparison), when customers are rewarded for their tenure they feel more appreciated and bond more closely with the operator brand. Equally, when they are placed on usage based tariffs which automatically reduce as they move through higher usage thresholds, they are less likely to feel the need to constantly check whether they are on the 'right' tariff plan. This in turn discourages comparison shopping which often triggers churn.

In this report, we present a detailed case illustration focusing on the success of Cosmote's well-established loyalty tariffs which reward increased tenure and particularly usage with lower service costs. We supplement this with a review of other similar initiatives introduced by operators including Vodafone Spain, Optimus Portugal, Mobistar Belgium and MTN Nigeria.

Price: EUR 1,250.00 / GBP 1,200.00

if you would like learn more about this report, or our other work in this topic area and how to subscribe, please contact us

1
Overview
1
2
Introduction
2
3
Tenure- & Contract-Based Tariffs
3
4
Usage Based Tariffs
7
4.1
Discounts on Daily Usage
8
4.2
Discounts on Long Calls By Vodafone in Italy and Spain
9
4.3
Discounts on Monthly Usage
10
4.4
Cosmote's Loyalty Tariffs
13
4.4.1
Decreasing Rates & Monthly Fees for Contract Customers
13
4.4.2
Variable Monthly Bonus & Incoming Traffic Bonus for Prepay Customers
15
4.4.3
Impact of Tariffing Policies
16
5
Summary
18