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Prepay Relationships Best Practice

MNOs in developed markets face increasing levels of competition from the entry of low-cost MVNOs and from their traditional rivals for market share. Customer relationships are key to retaining customers and can even help MNOs to resist erosion of prices, as long as the relationship is close enough and the customer perceives that the MNO is committed to his or her best interests. It has been very difficult to develop a relationship with a customer that may be known only as a phone number and the attractions of the prepay approach to customers (mainly, no credit checks, anonymity and flexibility to not spend) represent barriers to developing a relationship that are increasingly important to MNOs wishing to stimulate usage and attack churn. The greater the proportion of the base that is in a prepay relationship, the more important this issue becomes. To combat the rise of criminality and terrorism, states are increasingly requiring operators to collect information about prepay users, though this may not benefit them, as the information collected may not help in marketing (and they may not even be allowed to access it for privacy reasons).

This report examines what operators are doing to help develop fruitful relationships with prepay customers that they can exploit to increase ARPU and acquisitions and help contain churn. The report concludes with a set of key findings and recommendations aimed at MNOs on how to improve and manage relationships with existing and new prepay customers.

Price: EUR 2,500.00 / GBP 2,100.00

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Table of Contents


1
OVERVIEW
1
2
INTRODUCTION
2
2.1
Background to the Report
2
2.2
Report Content
2
2.3
Exchange Rates
3
3
MANDATORY & VOLUNTARY REGISTRATION
4
3.1
The Mandatory Registration Debate
4
3.2
Voluntary Registration
7
4
LOYALTY DRIVEN INITIATIVES
8
4.1
Introduction
8
4.2
Formal Loyalty Programs
8
4.3
Alternative Loyalty Schemes
9
4.4
O2 UK 'Rewards & Treats'
10
4.4.1
Evolution of Prepay Loyalty Initiatives
10
4.4.2
Current 'Rewards' and 'Treats' Loyalty Offers
13
4.4.3
Level of Service Uptake
14
4.4.4
Impact of O2 Loyalty Strategy on KPIs
16
4.4.5
Moving Forward with Content Based Rewards
19
5
BUILDING RELATIONSHIPS THROUGH A SEGMENTED APPROACH
24
5.1
Introduction
24
5.2
TIMtribu in Italy
24
5.2.1
Service Offer at Launch
24
5.2.2
Current Offer
25
5.2.3
Milleuna TIMtribu
28
5.2.4
The Viral Effect and Service Impact
29
5.3
Lady life:) in Ukraine
30
6
CONCLUSIONS & RECOMMENDATIONS
34