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Strategies to Extend (Prepay & Postpay) Mobile Customer Tenure

Network operators continue to face stakeholder demands for revenue growth and increases in profitability. In mature markets with high levels of competition, this can no longer be achieved by adding new customers (there are no untapped segments) and raising prices is not an option (competitive pressures ensure that prices actually fall). Improved business performance can only realistically be delivered through improvements in operational efficiency, diversification into new areas of service and by increasing the tenure and lifetime value of existing customers (avoiding the costs of acquiring new customers to replace those lost through churn and developing higher revenue levels from existing customers over their lifetime).

This report reviews the opportunities open to MNOs to address the area of customer tenure and value - both among prepay and postpay customers. Our analysis shows that actions taken in the early phases of a customer's tenure have a greater effectiveness than those taken later. This report details recommendations that MNOs should take account of to optimise their return from existing customers and maximise the benefit to their bottom line.

Price: EUR 2,500.00 / GBP 2,400.00

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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
Currency and Conversions
2
3
Mobile Customer Life Cycle Differences
4
3.1
The Life Cycle, Phases & Segments
4
3.2
Typical Life Cycle for Postpay Customers
4
3.3
Typical Life Cycle for Prepay Customers
5
3.4
Variations in Churn Definitions & Trends
7
3.5
Challenge with New Data-only Customers
10
4
Customer Knowledge and Personalised Interactions
11
4.1
Customer Knowledge
11
4.1.1
Sources of Customer Information
11
4.2
Segmentation and Personalised Interactions
12
5
Effective Options for Operators
13
5.1
Introduction
13
5.2
Contract Terms and Channel Strategies
13
5.2.1
Extended Contract Term
13
5.2.1.1
Discounted Plans in the Japanese Market
14
5.2.1.2
Orange UK Targeting Low-end Customers with 'Best for Value' Plans
15
5.2.2
Commission Structure and Channel Control
16
5.3
Loyalty Actions
17
5.3.1
Points Based Loyalty Programs
18
5.3.2
'VIP Treatment' Schemes
18
5.3.2.1
O2 'Priority List'
18
5.3.3
Alternative Reward and Discount Schemes
20
5.4
Community Pricing
21
5.5
Cross-selling and Up-selling Actions
22
5.6
Retention and Win-back Actions
22
6
Key Findings
24
7
Recommendations
25