By: Eitan Elkin, Product Marketing Manager for Revenue Management, Amdocs'
Everyone’s heard the old maxim “there’s no such thing as a free lunch.” By now, it’s been turned into a dozen different amusing memes and lampooned across the Web – but everyone still loves the idea of it. For Mobile Network Operators (MNOs) seeking a fresh infusion of users, a few months’ worth of free lunch (a.k.a. their favorite service) could mean a windfall when it comes to attracting new subscribers and boosting long-term retention rates.
Of course, technology will play a leading role in such a marketing program. Most MNOs have Big Data solutions in place to predict which service will be most appealing to customers. However, only those service providers with real-time charging systems will be able to effectively implement and manage this type of campaign from an operational perspective.
Baiting the hook for the hard sells:
When it comes to converting new customers, rarely it’s the impulsive buyers you have to work hard to convince. The mere mention of “free” usually sends them scrambling for the nearest contract. More challenging, though, are the skeptics.
Before committing to a specific plan, these consumers like to run through the broad spectrum of available plans, trying to figure out what makes one particular MNO or service offer more impressive than the next. During their compare and contrast sessions, they’ll examine each plan’s features, limitations and costs looking for the best possible deal. Upfront perks like free music, 10 hours of streaming video or one month of free Facebook posts could be exactly what those discerning subscribers need to switch service providers.
Sure, most of them will understand that it’s only a limited time offer (or a set number of hours, depending upon the service), but the allure is more than just free stuff. It’s personal as well. Letting customers choose which offer they prefer will help them see you as a company willing to cater to their needs.
As a bonus, you’ll receive an impressive array of live, crowd-sourced data to better understand which services are of most value to potential customers. It can even illuminate niche areas where you can focus specialized ad campaigns and optimize your social media engine to appeal to new users.
Leveraging personal usage patterns to build loyalty:
The more interesting use case, however, revolves around loyalty and customer retention. For years, service providers have been leveraging Big Data to better understand customer preference. Why not use that information to drive special offers to existing customers in the form of loyalty rewards? If you see that a subscriber spends hours playing Bomb Beech, shopping on Amazon or watching YouTube, use that knowledge to your advantage – send a personalized reward. Giving away a few MBs of service every quarter will go a long way towards creating a customer for life.
Making it happen:
An idea of this dynamic needs a robust support system. This is where a real-time charging solution becomes critical – it provides the flexibility companies need to vary how customers are billed, according to the services they use. Calculating subscriber usage is one thing, determining which services need to be charged as “free” during a specific billing cycle is a step beyond that. Without a real-time charging solution to account for usage at a granular level, you can’t implement such a complex program.
In a world where consumers—especially those within the Gen X and Millennial brackets—are increasingly hooked on the latest mobile apps, creating specialized, highly personalized offers that are algorithmically keyed in to each user isn’t just a shiny hook. It’s a great way to reel in new customers and keep existing subscribers from budging. It’s a win-win for both the service provider and its subscribers.
