Customer retention in the postpay contract segment has improved substantially in many markets over the past five years with the arrival of smartphones and 24-month contracts, but churn in prepay segments is still troublingly high. Competitive pressure, free SIMs and an increasing incidence of multiple SIM ownership fuel customer defections, and in these saturated and competitive markets, operators are struggling to find retention options that are effective in combating prepay churn.
In an effort to retain their prepay customers, and to help promote spend in the prepay market, best practice operators are implementing campaign management tools and solutions in order to help craft attractive personalised offers for their customers. These solutions can help operators target small numbers of their customers who have specific spend and/or usage profiles and also run a large number of campaigns concurrently, thus reaching a large proportion of the customer base. Many campaigns targeting prepay customers can offer significant increases in incremental and overall revenues as well as helping operators build-up considerable amounts of customer information to feed into future campaigns.
This report examines what can be achieved with current campaign management approaches, including best practice implementations already in place and concludes with concrete recommendations for MNOs seeking to use this approach to address spend and retention issues in their prepay bases.